Page 6 - The Connections Between Culture, Employoee Retention, and ROI

How Workplace Culture Impacts Your Employees (and Your ROI)
When it comes down to it, high-quality culture improves business outcomes. When you focus on boosting the employee experience within your company, it creates a more meaningful connection. This connection motivates employees to exceed their goals and propels growth by connecting your company’s management and employees.
In fact, a 1992 study by James Haskett and John Kotter suggests that strong company culture can deliver income growth of up to 756% over 11 years. Other studies found that engaged employees are 21% more productive while 73% of disengaged employees are actively looking for jobs (compared with only 37% of engaged employees).
Essentially, better culture means happier, more productive employees (which also means more satisfied customers). It also means a boost in your brand’s reputation and the ability to be proactive rather than reactive.
Culture and Employee Retention: Does Culture Impact Turnover?
Culture and employee retention go hand in hand. If culture is poor, employee turnover will be high. When your culture is strong, your employee turnover will be low. This is because culture allows you to obtain and attract more quality hires when you align values. It is also because
happy employees are more likely to stay where they’re at (even if it means passing up opportunities somewhere else!).
A new hire can also cost your company thousands of dollars. If this new hire isn’t the right fit for your company, you will have to repeat the process after putting so much time, money, and effort into the wrong candidates. If culture is still not established, you could be looking at continually making this costly mistake.
According to a Columbia University study, culture directly impacts turnover, affecting productivity and overall success. According to their research,
“the likelihood of job turnover at an organization with a rich company culture is a mere 13.9%, whereas the probability of job turnover in poor company cultures is 48.4%.”
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