Company culture is extremely significant when it comes to retaining employees. A positive and supportive culture can create a sense of belonging and loyalty among employees, leading to higher job satisfaction and a lower turnover rate. Employees who feel appreciated and valued are more likely to remain committed to the company and its goals. Additionally, a strong culture can attract new talent and enhance the company’s reputation, which can lead to growth and success in the long term.
On the other hand, a toxic or negative culture can quickly drive away talented employees, leading to a high turnover rate and a negative impact on the company’s overall productivity and profitability. Companies that prioritize creating a positive and supportive culture are more likely to retain their employees and ultimately achieve success in their industry.
According to a survey conducted by LinkedIn, 46% of professionals globally have left a job because they were unhappy with the company culture.
Furthermore, a Gallup study found that employees who feel disengaged from their work and the company culture are 87% more likely to leave their job. these statistics indicate that company culture plays a significant role in employee turnover and that organizations should prioritize creating a positive and supportive work environment to retain their top talent:
- The Society for Human Resource Management (SHRM) reports that turnover can cost employers up to 200% of an employee’s salary, and a poor company culture is one of the top reasons employees leave their jobs.
- A study by HBR found that workplace culture was the primary factor that contributed to employee burnout, which can lead to high turnover rates.
- Glassdoor’s 2019 Mission & Culture Survey found that 77% of adults across four countries (the US, UK, France, and Germany) would consider a company’s culture before applying for a job, and almost half (46%) of the respondents stated that company culture was the biggest reason they stayed at their current job.
While you can’t directly track the cost of metrics like morale, the results are obvious. Working on developing a healthy and supportive office culture is crucial to your long term success.