Can Workplace Culture Be a Factor in Financial Success?

Transforming Workplace Culture for Lasting Success

Building a legendary workplace doesn’t happen overnight, but it can be done with intention! Changing workplace cultures and building sustainable, impactful practices requires effort, but it is directly tied to increased profits, employee retention, satisfaction, productivity, and customer/client retention.

If we’re being honest, a lot of workplaces are toxic. The pandemic forever changed the way employees approach work. Even though things have readjusted post-pandemic, the needs, requirements, and standards of employees have not shifted back to pre-pandemic norms. Yet, every day we see employers who think they’re moving the needle in terms of culture when truthfully, they don’t really understand what culture is.

Cost of a Toxic Workplace:

Turnover due to toxic workplace culture has cost U.S. employers more than $223 billion over the past five years. Nearly half of employees (49%) have thought about leaving their current organization, while nearly one in five have left a job due to culture in the past five years. Additionally, 20% of workers have left a job due to “culture fit” or a toxic boss (SHRM).

So, let’s discuss what workplace culture isn’t:

- A remote-working policy isn’t workplace culture.

- Pizza parties in lieu of bonuses are not workplace culture.

- Foosball tables in the breakroom are not workplace culture.

Workplace culture encompasses your employees’ total experience. When was the last time you asked your employees how you could be a better leader? Have you created a space where employees can be human beings with human lives and experiences?

Leadership Influence and Costs:

76% of Americans say their manager sets the culture, yet 58% have left a job or are considering leaving because of negative office politics (SHRM). The cost of a toxic workplace extends beyond turnover. It can lead to decreased productivity, increased sick days, and potential legal costs.

If you haven’t been doing these things, take a breath! This isn’t to shame you but to shed light on improvement opportunities.

A positive workplace culture fosters engagement and satisfaction among employees, helps teams attract top-tier talent, and breeds innovation—all of which translate to improved profits. When people feel valued, respected, and supported, they're more likely to be motivated and committed to their work. With toxic workplace culture costing U.S. employers billions and impacting turnover, productivity, and legal expenses, the importance of a positive environment can't be overstated.

Given that businesses exist to make money and benefit shareholders, establishing and maintaining a healthy workplace culture should be priority number one.

These statistics highlight the importance of a positive workplace culture for both employees and employers. Addressing toxic environments can lead to improved employee satisfaction, productivity, and ultimately, a better bottom line.

What is your strategy for transforming workplace culture in your organization?