If you’ve ever walked into an office and immediately felt the ‘vibe’ — good or bad — then you’ve already experienced the power of organisational culture. That feeling doesn’t come from nowhere. It’s shaped by leadership.

In today’s fast-paced, hybrid-working, always-on world, getting your organisational culture right is absolutely essential. It’s not just about free coffee, bean bags or table tennis, it’s about how your people feel, behave, collaborate, and perform — and that all starts at the top.

What is organisational culture?

Organisational culture is basically the personality of your company. It’s the shared values, beliefs and behaviours, that shape how work gets done. From how teams communicate, to how decisions are made, to how mistakes are handled — it’s all part of the culture.

You might not see it written down anywhere (although arguably it probably should be) but everyone feels it.

In the UK, where workplace etiquette, politeness, and understated leadership are often part of the mix, organisational culture can be a subtle, but powerful force. Whether you run a small business in Croydon or a multinational in London, your culture sets the tone.

Why does culture matter?

Let’s be honest — times have changed. Employees today are looking for more than just a monthly salary. They want meaning, flexibility, fairness, and a sense of belonging. And they’ll leave if they don’t get it.

This is why culture really matters:

• Employee engagement: A positive culture boosts morale and motivation. People who feel valued and supported bring their A-game
• Retention and recruitment: Top talent will choose a great workplace over a bigger salary — especially Gen Z
• Productivity: Happy teams are more productive
• Innovation: A strong, open culture encourages fresh ideas and creativity
• Reputation: Word spreads fast. If you have a toxic culture, it’ll hit Glassdoor before you know it

The role of leadership in shaping culture

Leadership isn’t just about making decisions — it’s about living the values you want your team to embrace. You set the tone. If your actions don’t match your words, no mission statement in the world can save your culture.

Great UK leaders, from start-ups to corporates, know that leadership today requires empathy, transparency, and humility. It’s not about command and control anymore — it’s about connection and consistency.

Here’s how leaders can actively shape a positive organisational culture:

Define your values (and actually mean them)

Start by getting clear on what your company stands for. Not just buzzwords on a wall, but real, lived values that everyone shares, including and especially the leadership. Involve your team in defining them — they’ll be more likely to buy in.

Lead by example

If you want a culture of trust, be trustworthy. If you want people to collaborate, don’t silo information. Leaders who model the behaviours they want to see will naturally influence the wider team. Actions speak louder than words, consistent behaviour from leadership is crucial.

Communicate openly and often

A positive culture thrives on clear, honest, two-way communication. Keep people in the loop — about changes, wins, challenges, and direction. Make it okay for employees to speak up without fear, and create those safe spaces for open dialogue.

Recognise and reward

Appreciation goes a long way. Recognise effort, celebrate successes, and give credit where it’s due. This doesn’t have to be expensive — a shout-out in a team meeting or a thank-you email can work wonders. Positive reinforcement is a powerful cultural driver; employees will value feeling seen and heard.

Invest in development

Support your team’s growth with training, mentoring, and opportunities. If you want a culture of learning, adaptability and continuous development, leadership needs to show that development is a priority — not a box-ticking exercise.

Check in regularly

Use surveys, one-to-ones, or informal chats to keep a finger on the cultural pulse. What’s working? What’s not? Be open to feedback and willing to adapt.

Summary

Organisational culture isn’t just a “nice to have” — it’s the foundation of a thriving business. And in the UK, where workplace dynamics are evolving fast; strong, values-led leadership is key to building a culture where people actually want to work.

So, whether you’re leading a team of five or a thousand, culture starts with you. Set the tone, live the values, and watch the difference it makes. If you’d like help making sure you have the right organisational culture, get in touch.

The UK Employment Rights Bill 2026 introduces major updates to Statutory Sick Pay (SSP) that every UK employer should start planning for now. Although the reforms take effect from 6 April 2026, businesses need time to prepare for higher absence costs and tighter Fair Work Agency enforcement. At the time of writing, SSP is £118.75 per week —and because it can rarely be reclaimed, it is a direct cost to employers.

What Will Change From 6 April 2026

The Statutory Sick Pay reforms include four headline changes:

• Day-one SSP entitlement– employees will qualify for SSP from the first day of sickness, ending the current three waiting days
• Lower Earnings Limit removed– around 1–1.3 million low-paid workers who earn below the current LEL will now qualify for SSP
• New SSP calculation rule– employees will be paid the lower of 80% of their average weekly earnings or the flat SSP rate. This gives low earners a payment closer to their normal wage, but caps costs at the statutory flat rate
• Fair Work Agency enforcement– the newly created agency will have powers to inspect, audit and enforce SSP compliance

What should employers do?

If your organisation only pays SSP for sickness absence, your staff costs will rise. For each employee, absence separated by more than eight weeks could increase costs by around £71.25 (based on current weekly SSP pay rate).

To protect profit margins:

• Model the financial impact now, using your current absence rates
• Review your sickness policy and staff handbook so references to absence thresholds and payments match the new rules
• If you provide enhanced sick pay, make sure your documentation clearly distinguishes the SSP element and that payroll records it correctly
• Communicate clearly with your payroll provider—check their software can:
  • start SSP from day one
  • pay 80% of average weekly earnings capped at the flat rate, and
  • include employees previously below the LEL

Strengthen Absence Management:

Many employers expect an increase in short-term sickness absence once day-one SSP starts. Employers should ensure that they implement their existing sickness absence review processes, or implement a new process to sit alongside their absence policy so they can proactively and effectively manage short-term absence.

Protect productivity by:

• Setting out a clear absence management policy
• Training managers to apply the policy consistently, and
• Keeping accurate records for potential Fair Work Agency inspections.

Key Takeaway

The Employment Rights Bill 2026 will transform Statutory Sick Pay.

Preparing early—by reviewing policies, updating payroll systems and training managers—will help UK employers stay compliant and control the impact of rising SSP costs.

If you’d like to talk to us about these changes and how best you can prepare for them, please get in touch.