The power of a positive workplace climate cannot be understated. Climate can significantly influence critical outcomes such as performance, morale, motivation, and mutual respect. But what exactly do we mean by ‘climate’?
Climate refers to the atmosphere leaders at all levels create within the organization. This is not to be confused with company culture, however. Think of the difference between the two as layers of an iceberg. The tip of the iceberg floating above water refers to climate, which represents its members’ day-to-day perceptions and feelings, motivation and trust, and change can happen at a more rapid, observable pace. Culture represents the base of the iceberg underwater, where there are deeply embedded beliefs and customs within the organization that are not readily observable and take more time to change.
Culture vs. Climate: Why the Distinction Matters
Consider a company with a culture of customer-centricity, meaning that deeply ingrained values and beliefs emphasize putting the customer first in everything they do. This culture might be reflected in company policies, training programs, and long-term strategies prioritizing customer satisfaction. Now, let’s look at the climate. In one department of this same company, the manager creates a climate where team members feel rushed and stressed due to tight deadlines, so they sometimes skip the extra steps, like quality assurance, that ensure top-notch service. Although this company’s culture values customer-centricity, the climate in this department may lead employees to cut corners, impacting customer experience. In this way, culture sets the foundation (customer focus as a core belief), but climate—how employees feel daily due to management style or workload—can either support or undermine those cultural values.
The Costs of a Negative Climate
The impact of a negative climate on an organization might involve low morale, increased conflicts between team members, decreased trust and collaboration, lower ability to accomplish objectives, and even an increase in risk for sexual harassment. The 2019 Respect@Work study captures some of the broad consequences of negative workplace climates such as high harassment rates and financial losses due to absenteeism and turnover.
The Benefits of a Positive Climate
On the flip side, the impact of positive workplace climates can lead to an increased likelihood of task and overall strategic accomplishments, increased productivity and performance of both teams and individuals, and individuals exercising disciplined initiative to take appropriate risks within the limits of the leaders’ intent. Organizational psychology research consistently shows that when employees work in an environment that promotes positive emotions, they are more likely to experience higher job satisfaction, engagement, and motivation, contributing to strategic accomplishments. Employees who show up to work with enthusiasm and a sense of positivity can increase their productivity by up to 12%, as this attitude fosters creative problem-solving and resilience when setbacks happen.
Three Key Actions Leaders Can Take to Shape a Positive Climate
Leaders set the tone for climate, and it starts with a few essential actions:
- Model the Standards You Expect: effective leaders must demonstrate, not only by words but by actions, the behaviours they want others to emulate. It is human nature to look to the leader to understand how they should behave and perform. Several years ago, during a two-day interview process, our team’s culture had included discussing candidates casually behind closed doors. On the second day, however, the leader encouraged the team to shift focus, discussing candidates with respect and aligning feedback with our organizational values. This was a bold reminder to prioritize respect and integrity – even in casual settings – demonstrating the courage and confidence needed to uphold high ethical standards within the team. Naturally, others followed suit, leading to successful outcomes of selecting the right candidates for the job.
- Build Genuine Trust: Trust is the cornerstone of effective leadership that inherently impacts workplace climate. By prioritizing the interests of the team over personal ambition, leaders develop a climate of reliability and trust. But as a leader, you must recognize that trust is earned and not automatically given, and it can be a gradual process. Leaders can develop trust by consistently modelling transparency, reliability, and creating a safe environment where team members feel empowered to share ideas and make decisions. A 2016 Korn Ferry Hay Group global study found that improvements in organizational climate – including trust – can drive up to a 30% increase in productivity, as trust creates a climate where employees feel empowered to innovate and take calculated risks without fear of negative repercussions.
- Invest in Your People’s Growth and Well-being: Great leaders can balance the needs of the organization and the welfare of their members by knowing their people and be in tune to their overall well-being and providing help when they need it. A leader cannot assess and detect changes in their subordinates unless they know them, plain and simple. Caring for members also includes professional development, like giving them access to training, attending conferences, or even providing financial resources to continuing education like certificates or degrees. Doing so opens opportunities for career advancement and in turn, encourages productivity and job satisfaction. Overall, caring about team members shows employees that they are valued and creates a sense of belonging, which positively impacts team dynamics, ultimately driving organizational success.
Creating a Climate of Success
Creating a positive work climate isn’t just about keeping people happy; it’s about cultivating an organization that drives success for everyone involved. At the end of the day, the heart of creating an effective climate lies in effective leadership. But if you’re a leader that sounds like a lot of pressure, right? Simply put, yes it is. Leaders set the tone and establish norms that trickle down to every aspect of daily interactions and decision-making. Their behaviour and priorities shape how team members relate to one another, how they handle challenges, and whether they feel valued and supported. In other words, leaders bear the responsibility for creating a positive climate because they wield the greatest influence over the organization’s daily environment and eventually, its long-term culture. But this responsibility, rather than being a burden, is an opportunity to create a climate where team members uphold shared values, making the organization run smoothly and lightening the leader’s load as the culture reinforces itself.
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