"Culture Accelerators" CEOs believed that Company Culture drives Business Performance and Retention rates

Purpose is why people show up and Culture is how people make change happen.

?? One-third of CEOs rank culture as the number one most important influence on financial performance, up from 7% two years ago and as a driver of success in their business and talent management strategies.?

?? CEOs are taking a people-centered approach for 3 main reasons: Increasing employee engagement but also innovation and Improving diversity and inclusion, but Culture is the top influencing factor on employee retention rates, surpassing even compensation and benefits and workplace flexibility, according to a new interesting research published by Heidrick & Struggles using data from a survey of 500 CEOs from nine markets around the world, across sectors (32% of companies were global) and conducted in spring 2023.

?Definition of Culture Accelerators

Researchers defined as culture accelerators, CEOs who indicate their companies are taking an intentional, rigorous approach to culture in relation to financial performance. CEOs are doubling down on linking culture to performance and the impact is significant Extent focus on culture affected company’s Financial Performance and Retention Rates.

?Main reasons for a People-centered approach

Researchers discovered that CEOs are putting people-centricity in the top of their mind because of 3 main reasons below:

??increase of Employee Engagement

??Increase of Innovation

?? Improve of DEI

?? But these reasons have shifted over the past two years, in ways that highlight an increased focus on inspiring and engaging people.

?Culture is the top elements that positively impact retention rates

Interestingly, researchers found that Culture is the top influencing factor on employee retention rates, surpassing even compensation and benefits and workplace flexibility.

?Business performance remains the most important reason for CEOs

Researchers found that direction and purpose, along with agility, innovation and growth mindset are the most important culture elements to creating a positive impact on financial performance.

Also CEOs think that intentionally focusing on developing a thriving culture has a positive driver of financial performance.

?Culture and Purpose drive financial performance

Researchers found that CEOs believed that there is a strong complementary relationship between how culture and purpose drive financial performance.

Thank you ?? Heidrick & Struggles ?researchers team for these insightful findings:? Rose Gailey Ian Johnston Holly McLeod Krishnan Rajagopalan Sarah Payne Tracey Heaton Mark R. Harris

Dave Ulrich ?George Kemish LLM MCMI MIC MIoL

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