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4 Elements Of Organizational Culture - Impact On Mental Health

7 min read
Last Updated on 16 June, 2023

Almost every adult spends one-third of their day at work. Even those working remotely find drawing the line between personal and professional life challenges, making it as difficult as the on-site ones. Because of the same, full-time jobs inevitably shape their employees’ physical and mental health.

An organization’s culture is important for determining your employees' experience and health. The culture of the organization has a significant impact on your employees' mental health and overall well-being. An organization's culture refers to the shared beliefs, values, attitudes, and practices that shape employee behavior within the organization.

However, the impact of a company's culture is multifaceted. And creating a workplace culture that values the mental health of its employees is not an impossible task.

Remember that great company culture doesn't just spring out of nowhere. It is built piece by piece, and all you need are the key elements of an organization's culture and the right strategy to implement it and make your workplace a better place.

This article will help you better understand the key elements of a great culture and their impact on your employees' mental health.

Building A Strong Organizational Culture - 4 Key Elements


Expectations have heightened from employees post-pandemic regarding what an organization is offering. Salary is no longer the only factor that retains employees nowadays; organizations must look much deeper to cultivate a more humane-centric and holistic culture. One that is healthy, value-oriented, and inclusive, with built-in trust and recognition.

Here are four critical elements of a strong organizational culture -

1. Leadership


Leadership is one of the most important elements of any given organization. Cultivating a healthier and strong organizational culture starts with good leadership and an honest assessment of what they are doing for the current culture.

Leaders must identify where their culture fails to meet employee and marketplace expectations and uncover strengths they can continue to build upon. A good culture is built upon trust and the belief that the managers or organizations will do what they promised.

2. Holistic well-being


Another key element of a strong organizational culture is employee wellness. Employers or organizations must invest in building a holistic wellness culture, particularly the well-being of a diverse workforce. As this particular group often faces discrimination and disproportionated workplace stress.

Organizations can make holistic well-being foundational to their culture by -

  • Investing in resources and tools to support employees' physical and mental health.

  • Conducting diversity, inclusion, and equity programs to asses that all employees feel supported by the wellness program regardless of whether they work on-site or remotely.

Leaders and managers should be confident enough to encourage emotional agility in the workplace. Remember, agile workplaces are built with agile employees.

Suggested Read: Employees and Fitness: 5 Workplace Fitness Culture Benefits

3. Room For Professional Development And Growth


As the great resignation and quiet quitting trends take over the modern work culture, it's becoming increasingly difficult to retain top talent. Paying higher salaries or simply meeting the basic needs of employees isn't enough.

Employees leave their organization when they see no growth and professional advancement opportunities.

So employers must pay attention to policies and strategies that emphasize clarity on their employees' career growth and professional development. Organizations can cultivate a growth culture in the organization by -

  • Offering coaching and internal development programs and classes

  • Incorporating financial and time allocations into professional development frameworks

According to recent research, only 26% of knowledge workers clearly understand how their work relates to company goals.

4. Communication


Communication is the key foundation for every healthy work environment. And it is one of the most basic yet important elements of building a strong organizational culture. It is the key factor in how organizations engage with their employees, keep a tab on the employee experience, and activate new programs and offerings that ultimately influence the culture.

Communication also helps build employers' trust with their employees and a more engaged and informed work culture.

Suggested Read: 20 Best Tips For Managers To De-stress Their Remote Team

4 Ways Organizational Culture Impacts Employees' Mental Health


Employees spend almost one-third of their lives at work and have more exchanges with team members or colleagues than most family members. Job satisfaction and productivity highly depend on the work culture and the organization's values meet to keep up with employees' expectations.

According to a recent study by American Mental Health, it is found that company culture has a huge impact on their employees' mental health. And since workplace stress is such a common mental health issue, how your company's culture aligns with you and your relationship with your supervisor plays a major role in how you perform your job and manage your stress.

Here are four ways in which a company's organizational culture impacts employees' mental health -

1. Reduce Stress


The culture of a company directly influences its employees' stress levels. When your organization lacks effective communication, leadership, and management skills, it will create a negative work culture and cause unnecessary stress for its employees. Constant stress at work can lead to mental health problems such as anxiety, depression, and decreased productivity.

However, a company with an organizational culture prioritizes employee well-being by incorporating more diversified policies. It can include policies that prioritize work-life balance, mindfulness programs, healthy living choices, and other methods that help to reduce stress and can help positively impact employee mental health and wellness.

Suggested Read: 18 Lesser-Known Stress Relief Activities

2. Improves Work-Life Balance


A strong organizational culture can help build a workplace that prioritizes work-life balance. It further recognizes the importance of allowing employees time for personal life responsibilities, hobbies, and self-care.

Again, there are many benefits to having a healthy work-life balance. It helps to reduce stress and burnout, improving overall mental well-being. Thus, employees who are healthy both physically and mentally are more productive and engaging.

Suggested Read : 4 Self Care Programs To Foster Health At Workplace

3. Ensures Psychological Safety


An organization's culture that fosters psychological safety empowers employees to share ideas, voice concerns, and speak up without fear of repercussions. As a result, they feel safe and have a sense of belonging without feeling judged in this open and transparent environment.

Also, when employees feel safe and supported in sharing their thoughts and feelings, it can positively impact their mental health and create a more inclusive and collaborative work environment.

4. Enhance Morale And Build Trust


Recognizing employee contributions and appreciating them can boost employee morale and self-esteem. It is important for employees to feel valued and appreciated for their work, which enhances job satisfaction and mental well-being.

Also, when a company's organizational culture encourages open communication and transparency, it further contributes to a positive work environment. When employees are well informed about the changes in their organization, it helps to reduce uncertainty and promotes trust.

Frequently Asked Questions

1. What Are The Impacts Of Organizational Culture?

Your organization's culture affects everything from punctuality and tone to contract terms and employee benefits. Employees feel more comfortable, valued, and supported when your workplace culture aligns with their values.

2. How Does Your Organizational Culture Affect Mental Health?

Organizational culture can negatively and positively impact your employees' mental health. Studies have found a positive impact on your employees' mental health because of transparent communication and moderation of organizational trust between the company culture and mental health.

3. What Is Organizational Culture?

Organizational culture refers to an organization's values, beliefs, norms, and behaviors. It encompasses the shared attitudes and assumptions that shape the overall work environment and influence the behavior of individuals and groups within the organization.

4. Can A Healthy Organizational Culture Help Prevent Burnout?

A healthy organizational culture can play a vital role in preventing burnout. Employees who feel supported, valued, and have a reasonable workload are less likely to experience burnout. A culture that prioritizes work-life balance, encourages self-care and promotes a positive and supportive work environment can significantly contribute to preventing burnout.

Summing It Up

As a result, workplaces have become increasingly stressful in recent years, and many companies have begun to realize that an organization's culture significantly impacts employee well-being.

However, it is important to note that organizational culture can impact mental health differently for different individuals. Individuals may respond differently to the same work environment based on personal characteristics, resilience, and coping mechanisms.

Nevertheless, organizations prioritizing a positive and supportive culture tend to foster better employee mental health outcomes.

I hope this article helped you better understand the key elements of a great culture and its impact on your employees' mental health.

This article is written by Neha Yasmin who is a content marketer at Vantage Circle. A selenophile with a penchant for discovering great meals and drinks. Is a self-proclaimed binge racer with a knack for cooking in her spare time. For queries, reach out to

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