Leadership’s Impact on Building Thriving Workplace Cultures

A positive workplace culture doesn’t happen by chance—it is a deliberate outcome shaped by leadership choices, engagement strategies, and inclusive practices. By prioritizing alignment of organizational values, employee experience, and data-driven insights, leaders can create environments that promote loyalty, innovation, and sustained success.

A recent SHRM webinar featuring Alicia Roman, senior associate dean of the Columbia Climate School at Columbia University, and Tony Sandonato, vice president for learning and development at Travel + Leisure Co., along with insights from a recent SHRM report, The State of Global Workplace Culture in 2024, shed light on how leaders can use culture as a competitive advantage.

Employee Engagement: The Core of Culture

Engagement isn’t simply about participation—it’s about creating a shared sense of purpose and belonging. Roman highlighted the profound impact of engagement on teams: “It’s about showing up with energy, connecting across silos, and fostering genuine collaboration.” This aligns with data from the SHRM report showing that 87% of engaged employees rate their workplace culture as good or excellent, compared to just 34% of burned-out employees. 

In service-driven industries, the stakes are even higher, as engagement is the lifeblood of customer experience for organizations like Travel & Leisure Co. “You can feel when a team is thriving—it’s in their creativity, interactions, and how they deliver on customer expectations,” Sandonato said. These moments of connection are what distinguish thriving cultures from those merely getting by.

Strategic Inclusivity: Building Trust in Complex Organizations

A strong workplace culture is rooted in inclusivity and trust, rather than focused solely on engagement. According to the SHRM report, inclusivity begins with leaders modeling the behaviors and values they expect from their teams. “Respectful, authentic leadership creates a ripple effect, influencing how employees collaborate and solve problems,” said Roman. “People need to feel safe enough to share ideas and take risks. When leaders create that environment, they unlock innovation and creativity that benefits the entire organization.”

Meaningful conversations help foster inclusivity, Sandonato added. “When employees feel seen and heard, they bring their best selves to work,” he explained. The SHRM report backs this up, noting that employees who feel engaged and able to be open and honest at work are significantly more likely to trust their leadership—a critical component of a positive workplace culture. In fact, the report highlights that globally, 83% of employees in good or excellent work cultures are deeply motivated to deliver high-quality work, compared to just 45% in poor or terrible cultures. 

Leadership’s Transformative Role in Business Growth and Innovation

Leaders set the tone for an organization’s culture. Travel + Leisure Co. prioritizes four leadership competencies: “transparency, empowerment, decision-making, and customer-centricity,” said Sandonato.

According to SHRM’s report, strong leadership supports aligning organizational goals with deeply held values, fostering a sense of purpose and direction. This alignment is particularly critical during times of change, such as mergers and acquisitions, where cultural integration often determines success or failure. SHRM research found that workers in positive organizational cultures are almost four times more likely to stay with their current employer, emphasizing the role of deliberate leadership in ensuring stability and reducing turnover during periods of significant transition.

Sustaining Culture Through Metrics and Communication 

Thriving cultures aren’t static—they evolve as organizations grow. SHRM’s report emphasizes that managing culture involves regular assessment and alignment with current business objectives. Cultural audits, engagement surveys, and other metrics provide valuable insights into areas of strength and opportunities for improvement.

“We measure engagement predictably to try to stay in front of it, through our annual engagement survey and quarterly pulse surveys. This gives us a chance to make just-in-time adjustments throughout the year and respond to what’s happening out in the field,” said Sandonato. His company also tracks service and experience scores as customer feedback to align cultural goals with business outcomes.

Transparent communication is equally critical. Leaders must consistently reinforce cultural values through storytelling, internal messaging, and recognition programs. Sandonato noted that programs tied to organizational values foster deeper employee connection. “When you feel heard and seen in meaningful conversations, it’s not just about the immediate exchange—it’s about feeling valued and connected to the organization,” he said.

Strategies for Building a Positive Workplace Culture  

The webinar and accompanying presentation explored key learnings from SHRM offerings, including the Inclusive Workplace Specialty Credential, Workplace Mental Health Ally Certificate, People Manager Qualification (PMQ), Women in Leadership Institute (WIL), and Coaching for People Managers, for creating and sustaining a thriving workplace culture.

Practical Recommendations for Leaders 

The webinar offered actionable steps for leaders to foster a thriving culture: 

1. Leverage Data to Measure Engagement: Regularly gather employee feedback through surveys to identify areas for improvement.

2. Develop Leadership Pipelines: Prepare leaders for future challenges by fostering adaptability and resilience. This ensures organizations are equipped to manage change effectively. 

3. Foster Collaboration: Breaking down silos and encouraging cross-functional teamwork lead to innovation. Encouraging employees to connect their work to broader organizational goals creates a shared sense of purpose. 

4. Embed Inclusion and Equity: Respectful and equitable practices are essential to cultivating an environment where employees feel valued and motivated. 

5. Communicate Purpose and Vision: Clear, inspiring leadership is crucial for aligning individual efforts with organizational objectives. By articulating a compelling vision, leaders can motivate employees to work toward shared success. 

The Path Forward: The Future of Workplace Culture

Workplace culture serves as the lens through which employees perceive their organization, shaping behaviors, decision-making, and overall performance. “Leadership shapes culture every day. It’s in the small, deliberate choices we make to engage, support, and inspire,” said Roman.

HR plays a pivotal role in fostering environments where workers flourish by ensuring alignment between organizational values and behaviors, investing in leadership development, and leveraging data-driven insights to guide cultural evolution. “Culture isn’t a one-time effort—it’s a living, breathing part of the organization,” Roman explained. “Nurture it, and it will deliver returns far beyond what you expect.”