Do the board members understand your staff culture?
- May 4, 2022
- 3 min read
Updated: 6 days ago
Workplace culture stems from the top
The board are ultimately responsible for setting the strategic direction and the culture of your organisation, and the leadership team are responsible for implementing it.
Workplace culture directly impacts on employee engagement. Employee engagement represents the level of motivation, satisfaction and connection that an individual has with the organisation. In service industries, measuring staff engagement and assessing the cultural climate is extremely important in achieving client and corporate goals.
A board that does not actively monitor workplace culture is missing core people, governance and risk signals.
Why workplace culture is a governance and compliance issue
Attending to the workplace culture should be a regular part of every business or organisation’s risk management plan.
A tense, negative or toxic workplace culture puts you and your staff at risk. It can be the breeding ground for costly mistakes, low productivity, high staff turnover, complaints or grievances, and regulatory scrutiny.
From a legal perspective, workplace culture is increasingly relevant under:
the Fair Work Act 2009, including general protections and workplace rights
the Sex Discrimination Act 1984, particularly the positive duty to eliminate sexual harassment
work health and safety legislation, such as the Work Health and Safety Act 2011, which requires employers to provide a psychologically safe workplace
Regulators, including the Fair Work Ombudsman, are increasingly focused on systemic workplace issues , not just individual complaints.
Workplace culture is no longer a “soft” concept, it’s a measurable compliance risk with legal, financial and reputational consequences.
Key questions boards should be asking
Broadly speaking, there are self-assessing questions that boards should consider on a regular basis. For example:
How approachable is our leadership team?
Are we modelling the organisational values?
Are we listening to our employees?
Do we provide our employees with regular feedback, training, recognition and opportunities for improvement?
Do we solicit feedback from key stakeholders?
Are we fully compliant?
The importance of People & Culture metrics
It is also advisable that boards receive regular information on various People & Culture metrics, such as:
staff turnover rate
leave accrual rate
EAP uptake rate
legal and compensation claim metrics
cultural climate metrics
Without this data, boards are effectively making decisions without visibility of workforce risk.
If culture is not being measured, it is not being managed. And if it is not being managed, it is likely creating risk.
Workplace cultural reviews: a proactive risk tool
One tool used to measure the cultural climate of an organisation is a workplace cultural review.
This is a proactive process designed to understand the values, beliefs, attitudes, and behaviours shared by individuals and teams. Regular cultural reviews can be the catalyst for constructive workplace change and the continuous improvement of workplace relationships, staff engagement, productivity, safety, and performance.
Learn more about Workplace Cultural Reviews >
A well-run cultural review provides boards with:
independent, confidential employee insights
identification of trends, patterns and “hot spots”
early warning indicators of conduct or compliance risks
practical recommendations aligned to strategy
How WorkPlacePLUS supports boards and leadership teams
WorkPlacePLUS provides independent, executive-level insight into workplace culture, helping boards and leadership teams understand the “ground truth” of employee experience and its connection to organisational risk.
We bridge the gap between the frontline and the boardroom, transforming cultural data into clear, actionable intelligence that supports informed decision-making.
Our experienced consultants support organisations through:
Workplace Cultural Reviews - A carefully controlled, confidential process that allows employees to provide crucial feedback, helping to uncover trends, patterns and “hot spots” that may not otherwise be visible.
Strategic Reporting to Boards - Translating People & Culture metrics into meaningful insights aligned to governance, risk and compliance obligations.
Executive Leadership Coaching - Supporting leaders to align behaviours with organisational values, strategy and expected standards of conduct.
Risk, Change and Sensitive Workplace Matters - Providing expert guidance during periods of organisational change, workforce disruption or heightened employee relations risk.
Independent insights into the workplace culture gives boards something that internal reporting often cannot – an unfiltered view of workforce risk before it escalates into complaints, regulatory scrutiny or reputational damage.
WorkPlacePLUS can support the board and leadership team to work through identified risks and opportunities, ensuring practical, sustainable improvements that strengthen culture, reduce exposure and support long-term performance.
FAQs: Workplace culture and board responsibilities
Why is workplace culture important for boards?
Because it directly impacts organisational risk, compliance, employee performance and reputation. Boards have a governance responsibility to oversee these risks.
How often should boards review workplace culture?
At minimum annually, with regular reporting on key People & Culture metrics throughout the year.
What are the risks of ignoring workplace culture?
Increased likelihood of complaints, staff turnover, underperformance, regulatory action and reputational damage.
Is workplace culture a legal responsibility?
Yes. While not always explicitly labelled as “culture,” obligations under employment, discrimination and WHS laws require employers to provide safe, compliant and respectful work environments.
For more information or support, please contact us today.
