Company culture isn’t just about dress-down Fridays or free coffee in the office. It’s about how your business really operates—what’s encouraged, what’s rewarded, and how people treat each other day to day.
So, what is company culture exactly?
Company culture refers to the shared values, beliefs, attitudes and behaviours that define how a company operates and its overall atmosphere. It's the personality of an organisation, influencing everything from employee interactions to customer service. A strong culture can boost employee engagement, retention and overall business performance.
Shared values: The core principles that guide your company’s decisions and actions
Beliefs: The assumptions and convictions your team holds about the business and its purpose.
Attitudes: The emotional and mental approach to work, colleagues and the business as a whole.
Behaviours: The actions your team members take in their day-to-day interactions.
Employee engagement: A positive culture fosters belonging and purpose.
Retention: People are more likely to stay where they feel valued and supported.
Attracting talent: A strong culture draws in people who align with your values.
Business outcomes: Innovation, collaboration and customer satisfaction all thrive in the right environment.
Culture isn’t one-size-fits-all either. Some businesses adopt a collaborative, team-first approach (known as clan culture), while others prioritise innovation (adhocracy culture), competition and results (market culture), or structure and consistency (hierarchy culture). The key is finding the right fit for your business and making sure it's reflected in how things work day to day.
At The Alternative Board, we’ve seen first-hand how powerful a strong company culture can be. It’s also why our article “Does Culture Really Eat Strategy for Breakfast?” has been so popular with business owners across the UK.
So, how are businesses shaping their culture in 2025, and what can SME leaders take from their example?
Fintech company Revolut has introduced a points-based system (internally known as "Karma") to track staff behaviours. Employees are rewarded or penalised based on compliance and risk-related actions, directly affecting bonuses. It’s a bold move aiming to reset a culture that was previously criticised for being too intense.
What SMEs can take from it: Clear expectations and accountability matter. Even small businesses can benefit from aligning incentives with company values—just keep it human.
Under CEO Jensen Huang, Nvidia has built a culture focused on innovation and intensity. It’s not an easy-going workplace, but it's one with purpose. Despite the fast pace, employees report high satisfaction, with no layoffs since 2008.
Lesson for business owners: A strong mission can motivate and retain talent, even in demanding environments. Just be mindful of burnout.
Affirm operates fully remotely but still prioritises connection. The company encourages in-person meetups to keep teams aligned and connected to its values.
SME insight: Remote or hybrid working doesn’t have to mean disconnection. Even occasional face-to-face gatherings can go a long way in strengthening culture.
Australian company Carsales gives employees complete control over where they work: office, hybrid or remote. This “Autonomy to Choose” policy has improved engagement and morale.
What to consider: People value flexibility. If your business can accommodate different working styles, it can become a powerful part of your culture.
At TAB, culture isn’t just a concept; it’s something we live and breathe every day through what we call "The TAB Way". It’s our philosophy for how we operate, support one another, and deliver value to our members. It focuses on four key pillars: value, culture, brand and experience.
At the heart of our culture is a simple but powerful statement:
We are a giving and receiving community, treating each other as we would like to be treated and pursuing trusted advisor relationships.
We also have a set of shared values that guide everything we do, captured by the acronym CALIBRE:
C – Community
A – Accountability
L – Lifelong Learning
I – Innovation
B – Belief
R – Respect
E – Excellence
These values aren’t just words on a wall, they’re standards we expect of ourselves, our facilitators and our wider community. We encourage every TAB leader to regularly reflect on whether they’re aligned with the TAB Way, and to adjust behaviours and business practices accordingly.
What SME leaders can learn from it: A clearly defined culture gives your business a consistent identity, strengthens leadership and helps attract people who truly align with your values. When culture is intentional and well-communicated, it becomes a competitive advantage.
Culture isn’t static. It evolves alongside changes in the workforce, technology and wider society. In 2025, we’re seeing a renewed focus on the human side of work, with trust, flexibility, and inclusivity taking centre stage. Here are some of the most relevant trends shaping company culture in boardrooms across the UK and beyond:
More than ever, staff want to work in environments where they feel safe, respected and listened to. Trust influences everything from how decisions are made to how feedback is given and how mistakes are handled.
Why it matters: A culture of trust empowers people to take initiative, speak up, and innovate. Without it, even the most skilled team can become disengaged or risk-averse.
Mental health support, work-life balance, and flexibility are no longer “nice to have”; they are expected. Forward-thinking companies are investing in mental health resources, flexible work arrangements, and more realistic expectations regarding productivity.
Why it matters: When people feel looked after, they’re more likely to stay loyal, be productive and show up fully at work. For SMEs, a small investment in wellbeing can yield significant returns in performance and employee retention.
Standard perks, such as gym memberships or private healthcare, are being joined by more thoughtful and inclusive benefits. From elder care and menopause support to financial wellbeing programmes and even pet leave, businesses are looking at the whole person, not just the employee.
Why it matters: A diverse workforce has diverse needs. Offering more personalised benefits shows you’re listening and makes your culture more attractive to a broader range of people.
Fancy perks only go so far. What employees, especially younger ones, really want is the chance to grow. Ongoing training, mentorship, and career development are now some of the biggest drivers of engagement and retention.
Why it matters: In smaller businesses where promotion opportunities may be limited, offering learning and stretch opportunities can be a key differentiator.
The novelty of remote work has worn off, and businesses are now figuring out what real flexible working looks like in practice. The focus is shifting from location to connection—how do we keep people engaged, collaborative and aligned regardless of where they work?
Why it matters: Hybrid working models that strike a balance between autonomy and intentional touchpoints are proving to be the most successful. It’s less about office days and more about culture by design.
You don’t need to be a global tech firm to build a strong, healthy company culture. In fact, many small and mid-sized businesses have an advantage—fewer layers of management, closer-knit teams, and the ability to act quickly.
Here are a few powerful ways SME leaders can shape and strengthen culture, starting today:
Culture isn’t something you set once and forget. It lives in how your team feels day to day. Regular check-ins, whether it’s through quick surveys, one-to-one chats or informal team huddles, help you stay connected and spot any issues early.
Why it matters: When people feel heard, they’re more likely to speak up before problems grow. These conversations also help you spot what’s working so you can do more of it.
Quick win: Try a quarterly pulse survey with just three questions:
What’s going well?
What could be better?
Do you feel valued?
Your actions speak louder than any mission statement. As a business owner or leader, your behaviour, especially under pressure, sets the tone for what is acceptable, encouraged, or avoided in your business.
Why it matters: Culture follows leadership. If you want a culture of trust, accountability, or innovation, you need to embody those values consistently.
Quick win: Be intentional about how you show up, share your own challenges, give credit freely, and admit when something didn’t go as planned.
Recognition is one of the simplest ways to build a positive culture. Celebrate individual efforts, team achievements and values-driven behaviour. It doesn’t have to be flashy—just consistent and genuine.
Why it matters: Recognition boosts morale, reinforces desired behaviours, and helps people feel part of something bigger.
Quick win: Start team meetings with a “shout-out” round where anyone can thank a colleague for something they’ve done recently.
Open, honest communication is the foundation of any strong culture. It creates clarity, builds trust and gives people the confidence to speak up with ideas or concerns. Silence, or worse, mixed messages, creates uncertainty and disengagement.
Why it matters: Strong communication helps keep everyone aligned, especially in changing or challenging times.
Quick win: Don’t wait for a crisis to communicate. Share your thought process behind decisions, invite feedback, and explain the ‘why’ behind key business moves.
Do your company values still reflect who you are and how you work? And more importantly, are they visible in your daily operations? Values should guide how you hire, lead, make decisions and engage with customers.
Why it matters: Values are your cultural compass. However, if they are outdated or ignored, they quickly lose their meaning and influence.
Quick win: Ask your team which value they see in action the most, and which one they’d like to see more of. It’s a simple way to open up reflection and honest discussion.
Culture is happening in your business whether you shape it or not. The good news? You don’t need massive budgets or hundreds of staff to build a culture that supports growth, loyalty and long-term success.
If you’d like a sounding board to sense-check how your culture is impacting your business strategy, we’re here to help.
Talk to your local TAB facilitator about how peer boards and business coaching can provide you with the clarity to build a culture that genuinely works for both your people and your bottom line.