How to build a corporate culture that employees like

Professor W. James from Harvard University once said: “A salary system may enable employees to exert 20–30% of their abilities, but a strong corporate culture working atmosphere, management philosophy, and more can unlock 80–90% of their potential.”

This highlights that while compensation matters, culture plays a far greater role in motivating employees. Let’s explore two examples of companies that have successfully built employee-friendly cultures: 3M and Haidilao.

3M: Encouraging Innovation

3M’s core value is innovation, supported by four unique systems:

1. 15% Free Time
   Technicians are encouraged to spend 15% of their working hours on projects they propose and choose. This empowers employees to explore ideas freely and boosts engagement.
2. 30% Rule
   Revenue from new products or services launched within the first four years must account for over 30% of annual receivables. This encourages continuous innovation and rewards creative outcomes.
3. Internal Venture Capital “Event Bonus”
   Researchers developing prototypes and marketing them can receive up to $50,000. This financial support incentivizes intrapreneurship and experimentation.
4. Technology Sharing Award
   Employees who successfully share technology with other departments receive recognition, promoting collaboration and knowledge exchange.

These systems ensure that 3M’s values are not just statements but are embedded in daily work. They also strengthen employees’ identification with the company and foster a collaborative culture.

Haidilao: Building an Emotional Corporate Culture

Haidilao is renowned for creating a “big family” atmosphere among employees. Stories from employees often highlight the sense of belonging and empowerment they feel, which makes them loyal even beyond monetary compensation.

Key mechanisms that support this culture include:

1. Mentoring System
   New employees are guided by experienced mentors to integrate smoothly into the team.
2. Grassroots Leadership
   Except for finance and engineering roles, all management positions require starting from entry-level roles, ensuring leaders understand employee perspectives.
3. Empowering Employees
   Staff have authority to make certain customer service decisions, fostering autonomy and responsibility.
4. Employee Satisfaction Measurement
   Stores assess employee satisfaction alongside customer satisfaction, emphasizing that happy employees are crucial to service quality.

This approach fosters trust, belonging, and a sense of family. Employees may earn less than in high-pressure workplaces, but their empowerment and recognition significantly enhance engagement and loyalty.

Key Takeaways

• Corporate culture drives employee performance more than salary alone.
• Innovation-oriented cultures like 3M provide structured systems to reward creativity.
• Emotional and people-centered cultures like Haidilao prioritize trust, empowerment, and belonging.
• Practical policies, mentoring, autonomy, and recognition are as important as cultural slogans.

For businesses aiming to create a more employee-friendly culture, combining strategic systems with emotional support can significantly enhance employee engagement and business value.

If your company is seeking guidance on building such a culture, our senior consultant team can provide practical solutions tailored to your business.