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A huddle at a small business with a collaborative team culture

Summary:

This blog explores essential strategies for small businesses to cultivate a thriving team culture that enhances productivity and collaboration:

  • Understand Team Culture: Recognize its impact on alignment and productivity.
  • Define Core Values: Involve the team in establishing core values that reflect your business’s goals.
  • Hire for Cultural Fit: Ensure new hires align with your company’s culture.
  • Encourage Open Communication: Foster a transparent environment where everyone feels valued.
  • Recognize and Reward: Regularly acknowledge team contributions to boost morale.
  • Prioritize Professional Development: Invest in training and skill enhancement for long-term growth.

Building a team culture is a crucial component of a company’s backbone, especially for small businesses. A strong team culture fosters collaboration and boosts productivity. In fact, culture can be the difference between a business that merely survives and one that truly thrives.

How do you build a thriving team culture when resources are limited, and each role is magnified?

In this blog, we’ll explore how businesses can implement best practices to create an environment of mutual respect. Our goal is to provide insights that small business owners can apply to foster a positive team culture.

Read on to ensure your team works well together and enjoys the journey towards achieving your business’s shared goals.

Understanding the Basics of Team Culture

According to the workplace experts at Slack, team culture gives “employees purpose and effectively aligns teams to work toward achieving their goals.”

In essence, your team culture is your organization’s core set of values. It provides guidelines for interaction, particularly internally. When your team truly believes in your shared goals, they gain a sense of clarity that boosts productivity and helps them set priorities. According to Forbes, this added productivity can have a direct impact on your company’s bottom line.

Plus, top talent may prioritize workplaces with a positive company culture during their job search. Likewise, in a recent Builtin survey, nearly half of the participants cited poor company culture as a reason for leaving their previous positions.

In small businesses, building a positive team culture becomes even more crucial. It’s key to retaining critical team members and working toward steady and sustainable growth.

Laying the Foundation for a Positive Team Culture

Define Your Core Values

Building a strong team culture begins with the team. Ideally, business owners should involve the team in the process of defining core values. Not only does this get them invested, but it immediately establishes two-way communication as a valuable cultural asset.

Regardless of who is in charge of drafting your vision statement, it rests on leaders to model the values and practices they hope to see. After brainstorming values, The Muse suggests that leaders take on the role of consolidating and defining the input. Aim to define between 5 and 10 values that you feel your organization can genuinely hold itself to.

This process makes it simple to align your broader business goals with your team culture.

Hire for Cultural Fit

We discuss hiring for cultural fit in our Ultimate Guide to Small Business Growth & Success. It refers to the process of hiring employees whose workplace behaviors are in alignment with your established culture.

According to Business News Daily, best practices in hiring for cultural fit include:

  • Begin with a well-defined team culture.
  • Ensure everyone involved in recruitment understands and can articulate the team culture.
  • Include your team culture in hiring materials so prospects can self-assess.
  • Incorporate workplace tours, working interviews, and onsite trials into your hiring process.
  • Keep diversity, equity, and inclusion at the forefront.

A group of coworkers at a small business enjoy one another’s company

Strategies to Build and Enhance Team Culture

Once you have a clearly defined set of core values, it’s time to ensure your team follows them. Remember, positive cultural practices start from the top. Begin by modeling what you want to see in all communication. Likewise, there are a few elements you can build into your workplace to ensure they’re part of the fabric of your organization.

Open and Transparent Communication

Any business that encourages open, two-way communication at all levels of the organization is modeling and promoting collaboration. When team members feel valuable, they are more likely to go above and beyond.

In many workplaces, hearing from the boss causes a stone to form in the pit of team member’s stomachs. When their only interaction with the higher-ups is negative or punitive, they are less likely to bring issues or concerns to their attention. Regular communication normalizes these interactions and makes the entire workplace safer and more transparent.

The result is a team environment where individuals learn from one another, complement one another, and improve as a unit.

Regular Recognition and Rewards

It’s easy to fall into the trap of only acknowledging when things go wrong. Focusing on the negative over the positive can set the tone for your entire team.

In contrast, showing appreciation has the power to boost morale and create a sense of motivation. Team members who feel seen and appreciated aim to perform at a higher caliber. Great Places to Work emphasizes that cultivating a culture of recognition must be both meaningful and intentional.

At the same time, ensure that positivity doesn’t need to be earned. Create a sunshine committee and ensure you acknowledge birthdays, work anniversaries, life accomplishments, and more.

Remember, rewards don’t have to be monetary or tangible to be meaningful. Consider personalized thank you notes, calling out great work in front of the team, or offering a great parking spot.

Prioritize Professional Development

If you invest in anything, it should be team training and individual skill enhancement. According to a Zippia poll, 45% of workers would be more likely to remain at a company that offered regular professional development. Not only will you create a better-trained and informed team, but you can put those skills to work on a long-term basis. Consider it an investment in the future of your business.

However, simply offering or encouraging professional development is not enough. You must actively build it into the workday and ensure workers are compensated for their time. If it’s an extra responsibility or requires time outside of work, you aren’t demonstrating its value. The moment it begins feeling like a punishment rather than a perk, it loses its value.

Building a team culture is only one element of growing a successful small business.

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