OptiInsights

What Leaders Get Wrong About Company Culture (And How to Fix It)

Written by Juli Prizant | June 4, 2025

Leaders play a pivotal role in shaping company culture. It's not just about the perks, parties, or the statements on a company’s “About Us” page. Authentic culture is what people experience daily. Leaders shape decision-making processes, employee treatment, and the rewarding or ignoring of specific behaviors, all of which contribute to the company's culture.

At OptiPeople, we refer to this as the Voice of the Employee—what your team is honestly thinking, feeling, and saying about their experience. It’s one of the clearest indicators of how your company culture is showing up. A 2025 Redgrave study found that 92% of U.S. leadership teams say leadership is essential to culture, and 91% cite it as a top business priority.

So, why does company culture still break down? Because many leaders get these key things wrong.

Mistake #1: Thinking Culture Is HR’s Job

The misunderstanding: Leaders often hand off company culture to HR or People Ops—as if it were a program to manage, rather than a leadership responsibility.

The reality: The top shapes culture. Employees watch what leaders do far more than what they say.

The fix: Leaders must model the culture. Leaders should embody the company’s values in their behavior, communication, and decision-making. Magna Scientia confirms that leadership development, when tied to strategy, is a significant force in reinforcing the culture you want.

Mistake #2: Confusing Culture with Perks

The misunderstanding: Casual Fridays and kombucha taps mean we’ve nailed company culture, right?

The reality: Perks are surface-level. Employees want purpose, respect, and alignment. If the lived experience doesn’t match what’s promised, trust erodes.

The fix: Ask your people what’s working and what isn’t. Then follow through. SHRM’s 2024 Global Culture Report found that trust and alignment, rather than perks, are the strongest drivers of employee retention. A disconnected or toxic culture‌ pushes talent out the door.

Mistake #3: Letting Culture Form on Its Own

The misunderstanding: If we hire the right people, the company culture will take care of itself.

The reality: Culture forms whether you shape it or ignore it—and in high-growth environments, a lack of clarity leads to chaos.

The fix: Codify the values and behaviors that matter, then embed them into hiring, onboarding, leadership expectations, and feedback loops. According to Forbes, intentional culture-building distinguishes high-performing companies from those that merely react to problems.

Mistake #4: Waiting Until Misalignment Becomes a Crisis

The misunderstanding: If there’s a cultural issue, we’ll deal with it later.

It's crucial not to wait until misalignment becomes a crisis. Misalignment compounds. When toxic behaviors go unaddressed, or when there’s a gap between stated values and actual behavior, engagement drops and exits increase. By establishing safe and consistent channels for employee feedback and empowering your managers to identify and address cultural friction early, you can prevent these issues from escalating.

The fix: Establish safe and consistent channels for employee feedback. Empower your managers to identify and address cultural friction early. According to WorkforceWise, providing middle managers with the necessary tools and holding them accountable enables them to reinforce the culture and recognize warning signs.

Company Culture Is a Strategic Asset

Aligning your company culture with business goals creates a powerful multiplier. It fuels engagement, retention, innovation, and performance. When it’s not aligned, it quietly drains momentum, trust, and your best people. This highlights the strategic importance of company culture and should motivate you to ensure it aligns with your business objectives.

A 2025 report from The Guardian and the University of Melbourne reinforces this, showing that inclusive leadership leads to better decision-making and team innovation. Culture isn’t fluff. It’s infrastructure.

And the best part? You don’t have to guess. You can design and scale company culture just like any part of your business.

OptiPeople Resources helps growing and transforming companies build integrated, people-driven strategies—from attracting and hiring top talent to optimizing the systems, processes, and leadership practices that drive sustainable growth. To learn more about how we can support your organization's needs, call us today or schedule a time to discuss your requirements. Embrace this innovative approach to talent and watch your business thrive with the right expertise at the right time.