The Profit of Company Culture

Join the culture club to attract and retain top talent.

As business leaders navigate the unpredictable waters of 2023, the compass of workplace culture will be the guiding star, determining whether companies sail toward triumph or peril. Amid the "Great Resignation” and with economic uncertainties looming, companies in every industry grapple with the complex task of employee retention. The turnover rate is projected to reach a staggering 25-30% in the coming years.

Let the record reflect that I am not an HR professional, however, I’ve seen my fair share of unhealthy company cultures throughout my career. Looking back on the factors that led me to resign from various positions, there is no doubt that a combination of leadership and workplace culture issues stands out as the common denominator.

Now is the time for business leaders to revitalize their organizational cultures, basing them on trust, inclusivity, and fairness principles. A recent Pew Research Center survey revealed that two of the top three reasons that U.S. workers reported leaving their job was that they felt disrespected at work and had no opportunities for advancement. Focusing on cultural improvements not only enhances productivity but also becomes an enticing magnet for top-tier talent, promoting long-term retention compared to companies neglecting their culture. Furthermore, research reveals that companies with highly engaged employees can experience a remarkable 21% boost in profitability.

“Company behavior this year will determine how quickly companies bounce back from these recessionary times,” says Kim Peters, executive vice president of global recognition and strategic partnerships at Great Place To Work. “If you don’t have a high-trust culture now, it’s definitely time to build one with careful thoughtful decisions that show your care for your people.”

So how does an organization begin to shape or improve its workplace culture? The top five focus areas include:

1) Building trust with employees by showing extraordinary care.

2) Investing in talent development and performance management.

3) Preparing for DEIB (diversity, equity, inclusion, and belonging) progress to be tested.

4) Creating an excellent employee experience both in-person and online.

5) Understanding that political polarization poses an ongoing threat to company culture and leaders must navigate these challenges carefully.

All business leaders have a significant impact on their company culture through their behavior, communication, values, and decision-making. By prioritizing transparency, empowerment, recognition, and diversity, leaders can create a positive and thriving work culture that not only attracts and retains top talent but also increases productivity and profitability.