Page 7 - The Connections Between Culture, Employoee Retention, and ROI
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Organizational culture makes a difference in ROI by bringing all your values and practices together, to create a clearly defined guide for all your staff to follow. ROI is increased by setting employees up for success with clear expectations and guidelines on how to meet their goals.
Employee retention and turnover rates are also directly affected by culture because hiring the right employees who blend into your culture does these two things:
Keep the new hire satisfied enough to stay with your company
When everyone is satisfied with the addition to the team, ROI is better because productivity stays up
and conflicts are minimized.
On the other hand, toxic work culture can cost companies millions. A good example is when United Airlines went against their core value of “We Fly Friendly” and aggressively removed a passenger from their plane to replace them with a United employee. According to LinkedIn, this PR nightmare led to $800 million lost by the next day.
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