Return to People: Why Company Culture is the Make-or-Break Factor

The concept of "Return to Work" has dominated headlines in recent years, but it’s time to shift the focus to something even more critical: a "Return to People." In my work, I have always been passionate about helping leaders prioritize workplace culture because the data is clear—when culture thrives, companies and their people flourish. But the inverse is also true. Poor workplace culture doesn’t just hurt morale; it undermines everything from productivity to profitability. Let’s explore what happens when company culture goes wrong—and what’s possible when leaders take it seriously and act on it.

The Cost of Bad Culture

Workplace culture is more than an HR buzzword; it’s the foundation on which every organization stands. When that foundation is weak, the consequences ripple through every aspect of the business.

• Employee Turnover: Toxic workplace cultures are driving employees out the door at alarming rates. In the UK, 34% of employees left jobs due to negative workplace environments (Knight Frank). Similarly, in the U.S., the financial toll of toxic cultures is staggering, with $223 billion lost over a five-year period due to turnover and absenteeism (SHRM).
• Mental Health Challenges: Toxic environments do more than hurt productivity; they hurt people. Employees in such settings are 47% more likely to report mental health struggles, leading to higher burnout and disengagement (Business Insider).
• Damaged Reputation and Profitability: Companies with a reputation for poor culture struggle to attract top talent, and the costs don’t end there. Teams working under strain or mistrust are less innovative and less effective, leading to missed opportunities and stifled growth.

The Transformative Power of Great Culture

The flipside is equally compelling. Organizations that invest in fostering a positive, people-first culture reap rewards that extend far beyond the office walls.

• Financial Gains: Culture and revenue growth are intrinsically linked. Companies with strong, intentional cultures saw 516% greater revenue growth over a decade compared to those without (TestGorilla). It’s clear: good culture pays.
• Employee Engagement: Engaged employees are not just more productive; they’re more innovative and committed. Organizations that prioritize culture see up to 50% higher employee engagement within three years, a key driver of sustained success (TestGorilla).
• Talent Attraction and Retention: A healthy work culture is a magnet for talent. In fact, 94% of entrepreneurs and 88% of job seekers say that a strong workplace culture is crucial to their decision to join or stay with a company (TeamStage). In a competitive labor market, culture isn’t just an advantage—it’s a necessity.

Here’s what leaders can do to take action today:

• Listen and Learn: Start by actively listening to your employees. Use surveys, focus groups, or one-on-one conversations to understand their needs, challenges, and aspirations.
• Define Your Culture: Articulate the values and behaviors that reflect the culture you want to build. Ensure they align with your organization’s mission and vision.
• Lead by Example: Culture starts at the top. Model the behaviors you expect from your team—be transparent, approachable, and consistent.
• Invest in Development: Provide training and resources to help employees grow, both personally and professionally. This signals a commitment to their success and well-being.
• Celebrate Wins: Recognize and reward behaviors that reinforce your culture. Publicly celebrate milestones and achievements to create a sense of shared purpose.

There are times when you need a large "Culture Moment."

Or series of moments. Annual meetings. Team sessions. Conferences, retreats and town halls. These are outstanding opportunities to rally around culture and set the tone ahead. This is what FISH! keynotes and workshops are made for, and you can talk about one if you'd like by contacting Lisa Olsonoski and Ryan Luthi on our team. You can also also pick up FISH! for you and your team. The 110 pages there have gotten organizations on the SAME page for decades.

As we look to the future, and have profitability in our minds to help get us there, we need to prioritize what matters most—our people. A thriving culture isn’t just good for morale; it’s a catalyst for profitability. When we get culture right, we build teams that innovate, customers who stay loyal, and businesses that grow sustainably.

Everything falls into place when you work on your culture.

John

Andre A. Wiringa / Start Reverse Paula Skoviera Shylla Webb Tom Guetzke Ryan Luthi Carrie Cook, MBA Fractional CFO Lisa Olsonoski Jill C. Holly Wartnick

Resources:

• Knight Frank: Fix Bad Company Culture. https://www.knightfrank.co.uk/office-space/insights/culture-and-space/fix-bad-company-culture/
• SHRM: 2021 Culture Refresh Report. https://www.shrm.org/content/dam/en/shrm/topics-tools/news/managing-smart/2021-culture-refresh-report.pdf
• Business Insider: More CEOs Than Workers Think Their Company Culture is Toxic. https://www.businessinsider.com/more-ceos-than-workers-think-their-company-culture-is-toxic-2024-6
• TestGorilla: Company Culture Statistics. https://www.testgorilla.com/blog/company-culture-statistics/
• TeamStage: Company Culture Statistics. https://teamstage.io/company-culture-statistics/

#WorkplaceCulture, #Leadership, #EmployeeEngagement, #ReturnToPeople, #BusinessGrowth, and #HRLeadership

Lisa: [email protected]