The Cost of Culture

By: Ryan DuBois

Recently, I had the great pleasure of meeting with Kevin Paul Scott , a well-known leadership expert. Our conversation centered around various aspects of leadership, but one point that stood out the most was the importance of creating and maintaining a thriving company culture. We both agreed, along with others like Dave Ramsey and the EntreLeadership team, that companies with a strong culture outperform others by at least 20%.

But what does that really mean, and how can you achieve it?

More importantly, what’s the true cost of a poor company culture?

“Culture eats strategy for breakfast.” — Peter Drucker, Management Consultant

Calculating the Real Cost of Turnover

Does your company calculate the cost of turnover? Retraining a new hire diverts resources and takes time away from other critical tasks. Team members who could be focused on growing their departments often get stuck in the endless cycle of retraining new people. But this cycle can be broken.

The starting point? Your hiring process.

“The cost of hiring someone bad is so much greater than missing out on someone good.” — Joe Kraus, Entrepreneur & Investor

The First Impression Starts with Hiring

When you post a job, think about the kind of energy that job listing projects. What are potential candidates feeling when they read your posting? And for the hundreds of applicants you won’t hire, do you have a system in place to communicate with them? Even if you’re passing on their application, a simple follow-up can set the tone for how they talk about your company later. This first impression is where your culture begins.

During interviews, are you being intentional? Are you blocking off dedicated time to truly get to know candidates, or are you rushing through the process?

Is your phone out on the table? Do you get pulled out of interviews for "urgent" matters?

It’s crucial to treat every candidate with respect and give them your full attention—this reflects the type of workplace they can expect if they join your team.

“You never get a second chance to make a first impression.” — Will Rogers, American Actor and Social Commentator

Onboarding: The First 90 Days

Once you’ve hired someone, how intentional are you about their onboarding experience? The two weeks leading up to their first day, and the first 90 days after they join, set the tone for their success.

Does your new team member have role clarity?

Are they clear on what success looks like in their role?

Is there a culture of open communication and ownership where they feel empowered to ask questions?

These early steps are key to building a thriving culture.

“The way your team starts with you will often determine how they finish with you.” — John C. Maxwell, Leadership Expert

Celebrate Milestones and Set Growth Plans

Are you celebrating milestones along the way? Small wins deserve recognition, and high-fives—both literal and metaphorical—go a long way toward building camaraderie.

Beyond that, do your team members have a growth plan?

Do you know where they want to be in 1, 3, or even 10 years?

Investing in their long-term growth shows you care about them as individuals, not just as team members.

“Take time to appreciate employees and they will reciprocate in a thousand ways.” — Bob Nelson, Author of 1001 Ways to Reward Employees

Pushing People Up—Even If They Leave

One of the most profound ways to build a thriving culture is by consistently pushing your team members up, even if it means they eventually leave the company.

Yes, sometimes developing your people means they’ll move on. But if you’ve built a culture of genuine care, they’ll leave with a positive story to tell. And who knows, a few years down the road, they might just return, stronger than ever, because of the investment you made in them.

“Train people well enough so they can leave. Treat them well enough so they don’t want to.” — Richard Branson, Founder of Virgin Group

People Over Profits

You’ve heard the phrase, “People over profits.” When you truly live by this principle, the profits will follow. I promise you that. When you invest in creating a thriving company culture from the start, you’ll see the long-term dividends in productivity, quality, and ultimately, your bottom line.

“Take care of your employees, and they’ll take care of your business. It’s as simple as that.” — Richard Branson, Founder of Virgin Group

Be Intentional About Culture

As leaders, I encourage you to calculate the cost of your turnover. If you don’t have a budget for creating a strong culture, I guarantee you’ll have a growing budget for handling turnover and the inefficiencies that come with it—decreased productivity, quality, and customer satisfaction. Outsource help if necessary; companies like ADDO by Kevin Paul Scott specialize in this work.

The cost of investing in your team members will always outweigh the long-term expenses of neglecting culture.

“To win in the marketplace, you must first win in the workplace.” — Doug Conant, Former CEO of Campbell Soup Company

Committed to You, Committed to Excellence!

You’re friend,

Ryan DuBois