Understanding workplace culture, engagement, and legal responsibilities in the UK
Employee engagement and workplace culture are closely connected. One shapes the other and together they influence how employees feel, behave, and perform at work.
But how does culture shape perception, and how can HR teams measure and improve engagement in a way that aligns with UK employment law?
This blog provides a practical overview for employers and employees across all sectors, including legal expectations and upcoming changes under the Employment Rights Act 2025.
What is employee engagement and why does it matter?
Employee engagement refers to how committed, motivated, and connected employees feel to their organisation.
It goes beyond job satisfaction engaged employees:
- Feel valued and respected
- Understand organisational goals
- Are more likely to contribute positively
However, engagement doesn’t exist in isolation it is heavily influenced by culture.
As research highlights, organisational culture defines “how people think, feel and behave” in the workplace. [davidsonmorris.com]
This means if a workplace culture is supportive and inclusive, engagement is likely to be high. If it is toxic or inconsistent, engagement will suffer.
How does culture shape perception and engagement?
Culture creates the “rules” employees follow often without realising it.
In simple terms:
- Culture tells people what is acceptable
- Engagement reflects how people feel about it
The Royal College of Obstetricians and Gynaecologists describes workplace culture as “the way we do things around here,” which directly influences behaviour and expectations. [engageforsuccess.org]
Examples:
- If long hours are praised → employees may feel pressure to overwork
- If leaders ignore poor behaviour → employees may see it as acceptable
- If feedback is encouraged → employees feel safe to speak up
Over time, these patterns shape employee perception of what is “right” or “wrong” even when it conflicts with policies or personal values.
How HR can measure employee engagement
Measuring engagement is essential for understanding whether workplace culture is working.
✅ 1. Employee surveys
Regular anonymous surveys can capture:
- Satisfaction levels
- Sense of belonging
- Trust in leadership
✅ 2. Feedback and listening tools
This includes:
- Pulse surveys
- Suggestion platforms
- Exit interviews
✅ 3. Absence and turnover rates
High turnover or sickness absence may signal poor engagement or cultural issues.
✅ 4. Behavioural indicators
Look at:
- Participation in meetings
- Willingness to collaborate
- Levels of conflict or complaints
✅ 5. Culture audits
Review whether policies align with what actually happens day to day.
Research shows there is often a mismatch between formal policies and real behaviour in organisations. [davidsonmorris.com]
The legal framework: What the law says now
Employee engagement is not just a “nice to have” it links directly to legal responsibilities.
Under the Equality Act 2010, harassment is unlawful where it relates to protected characteristics such as sex, race, or religion. [legislation.gov.uk]
Harassment is defined as behaviour that creates:
- An “intimidating, hostile, degrading or offensive environment.” [legislation.gov.uk]
Employers are legally responsible for preventing this.
They must:
- Take complaints seriously
- Provide clear policies
- Take steps to prevent issues, including sexual harassment
Importantly:
Employers can be liable unless they can show they took “reasonable steps” to prevent harassment. [penningtonslaw.com]
A disengaged workforce is less likely to report issues early—which increases legal risk.
What is changing: Employment Rights Act 2025
The Employment Rights Act 2025 introduces significant changes to workplace expectations.
It became law in December 2025, with implementation continuing through 2026 and 2027. [cheeratwork.com]
Key changes affecting engagement and culture:
- Employers must take “all reasonable steps” (stronger than before) to prevent harassment [eversheds-…erland.com]
- Increased focus on preventing sexual harassment, including from third parties
- Greater accountability for workplace behaviour and culture
For HR teams, this means engagement is no longer optional—it is part of compliance.
How HR can improve engagement through culture
Improving engagement requires proactive, consistent action.
✅ 1. Build a clear and inclusive culture
ACAS advises having policies that clearly outline:
- Expected behaviours
- What is acceptable and unacceptable
- How issues will be handled
This helps employees understand the organisation’s values.
✅ 2. Train managers effectively
Managers play a critical role in shaping day-to-day culture.
Training should cover:
- Communication skills
- Recognising poor behaviour
- Handling complaints
✅ 3. Encourage open communication
Employees should feel safe to:
- Share feedback
- Raise concerns
- Challenge behaviour
A culture where people feel heard leads to higher engagement.
✅ 4. Take action on feedback
Collecting data is only useful if action is taken.
For example:
- If surveys show low morale → review workloads or leadership styles
- If complaints increase → investigate underlying cultural issues
✅ 5. Focus on prevention, not reaction
With the move to “all reasonable steps,” HR must:
- Identify risks early
- Monitor behaviours regularly
- Address issues before they escalate
Practical examples for UK employers
Example 1: Low engagement in a small business
A small company has high staff turnover. Exit interviews reveal employees feel undervalued.
HR introduces regular feedback sessions and recognition schemes, improving engagement and retention.
Example 2: Culture vs policy mismatch
A larger organisation has strong policies but poor manager behaviour.
Training and accountability measures are introduced to align behaviour with policies.
Example 3: Preparing for legal changes
A retail employer reviews risks of customer behaviour toward staff.
Introduces reporting processes and staff training to prepare for third-party harassment obligations.
Steps to ensure compliance with the Employment Rights Act 2025
To prepare for upcoming changes, employers should:
- ✅ Review and update policies
- ✅ Provide regular training on behaviour and harassment
- ✅ Conduct culture and engagement assessments
- ✅ Document preventative actions
- ✅ Ensure leadership accountability
These steps help demonstrate compliance with the requirement to take “all reasonable steps”.
What this means for employees
Employees also play a role in shaping culture and engagement.
They should:
- Participate in surveys and feedback opportunities
- Raise concerns where appropriate
- Be aware of their rights under UK law
Remember: engagement improves when everyone contributes to a respectful and inclusive workplace.
Final thoughts
Employee engagement and workplace culture are deeply connected. Culture shapes how employees perceive behaviour, and engagement reflects how they respond to it.
As expectations shift under the Employment Rights Act 2025, UK organisations must move from reactive to proactive approaches.
By measuring engagement effectively and actively shaping culture, HR teams can:
- Improve employee experience
- Reduce legal risk
- Build stronger, more resilient organisations
Call to action
Now is the time to take action:
✅ Do you understand how your culture affects engagement?
✅ Are you measuring the right indicators?
✅ Is your organisation ready for the Employment Rights Act 2025?
Making changes today will support both compliance and a healthier, more engaged workforce tomorrow.
Do you have any questions about today’s blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
If you answered yes to any of the above, just give us a call at CUBE HR on 01282 678321, or book in a FREE 30 Minute HR Health Check here FREE HR Health Check and we’ll happily give your business a full HR overview with our personal recommendations absolutely FREE!
Why not also check out last weeks blog How Does Culture Shape the Way People See Right and Wrong?
We also have a YouTube channel with loads of handy videos outlining various HR related scenarios.
