Organizational Health 101: What Every Company Needs to Know

Organizational Health 101: What Every Company Needs to Know

Behind every successful company is a team of talented and satisfied employees. Besides their exceptional skills, employees need to be motivated and engaged in order to produce the best outputs. For this to be possible, the company needs to take a look at organizational health, as it greatly affects the employees’ well-being.

In this article, we’re going to discuss what organizational health is, why it’s important, as well as some helpful tips on how to enhance it. Keep reading ahead to learn more!

What Exactly is Organizational Health?

To get down into the nitty and gritty of organizational health, it’s important to discuss what it actually is to understand it better.

Organizational health is a term that’s used to describe the capacity of a business to adapt to a world that’s constantly changing. It is the organization’s ability to cope with change and to function in a workplace setting that’s high in performance.

Nowadays, it’s even more evident that the business environment is shifting continuously. A lot of companies from different industries have to operate under challenging circumstances. According to this report, many businesses struggled due to insufficient talent, new regulations, and a reduction in customer demand. 

The company’s organizational health affects its ability to respond to these challenges. 

Why is Organizational Health Important?

Organizational health is an essential aspect for a company to attain success.

It’s natural for businesses to always be on the lookout to figure out their competitive advantage. They learn from their mistakes and have the continuous drive to improve the skills and abilities of their employees. A continuous cycle of innovation is required in order to maintain good organizational health. When it’s good, the business’s financial stability is positively impacted. It also increases its operational profits, and its employees are upskilled to be prepared for any challenges. 

Having strong organizational health allows its leaders to create a path of constant improvement since it requires a good understanding of the environment the business operates.

How to Improve Organizational Health

The thing about organizational health is that it should always be prioritized and improved over time. Here are simple ways to improve the company’s organizational health.

Establish cooperation and teamwork.

Encouraging teamwork and cooperation between teams and individuals positively impact the company’s organizational health. Nowadays, the problems present in organizations can get too complex, making it much easier to solve them when working as a team.

You can do so by letting your employees know that you trust them. When assigning tasks, focus on what you expect instead of how they should work. Every employee has a different approach to achieving the preferred results–nitpicking and being overly meticulous will only get you so far, which also lets your employees know that you don’t trust their own judgment. 

It’s also helpful to assess the strengths of every employee. Every team member has different qualities and strengths, which will benefit the teamwork when they know this to utilize their total potential.

Hire individuals with good communication skills.

Companies sometimes commit the error of hiring employees who aren’t team players. Even though they have very good technical skills, their people skills could be lacking.

This prevents the company from improving its overall organizational health. Keep in mind that a progressive mindset and good collaboration are crucial aspects of attaining outstanding organizational health, and this all starts with communication.

Inspire your employees to use individual strengths to their advantage.

To promote innovation and enhance performance, take note of each of your employee's unique skills and strengths and tap into them. One of the best ways to improve the company’s organizational health is by managing the employees based on their strengths. 

Working with each individual’s strengths holds another important benefit–it lets them develop their natural skills over time and stay more engaged and motivated. This is why employee engagement is directly tied to business performance.


At the end of the day, an organization's health is essential to its success and sustainability. By investing in clear communication, employee involvement, teamwork, and a culture centered on trustworthiness, organizations can create a healthy atmosphere that helps employees and the business. 

A company with excellent organizational health is better equipped to navigate challenges and changes, and is better positioned to achieve its objectives and fulfill its mission.

We hope this article has given you new insights and perspectives on implementing organizational health strategies that’ll drive the company to success.


Paving the way for organizational health!


Peoplelogic gives me access to real-time data about my workforce that I can't view in any of our other talent systems!

Onboard, develop, retain, and grow
every employee - from day one