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Is Culture & Employee Retention connected?

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culture employee retention

What is 'Company

Company culture or workplace culture can be defined as a company's attitudes and behaviours. It can be seen in how those working interact with one another, the values they hold, and the decisions they make.


Workplace culture is made up of a variety of different factors and values such as the work environment, leadership style used, the company's vision, what the leaders expect of their employer and the overall basic assumptions of the company.


Because each organization has different goals and is made up of different people, no two workplace cultures will be the same and every company will have a unique culture.

Why is creating a good company culture important

The company culture will decide how employees handle problems, interact with one another, and conduct themselves daily. That is why, from a management standpoint, establishing the tone of the workplace culture is key.


Making sure every employee is represented and accounted for is an important part of creating a healthy workplace culture. This will allow the company's culture to bring everyone together and drive them toward a common goal.


Creating the perfect workplace culture is also very important to workers as people tend to enjoy their work more when they feel their needs and values are consistent with the company values. Working somewhere where you feel you fit in with the company values will allow the development of better relationships with those employed and will lead to professional development.

The impact of positive workplace culture on employee retention

Having a positive workplace culture in any given company will not only help to keep employees engaged but increase job satisfaction and help to make employees feel appreciated.


A strong corporate culture provides employees with values and an environment that will strive for success and in turn, drive employee engagement. Employees' inspiration for their work occurs because of the intrinsic motivation a good workplace culture creates.


Furthermore, a good workplace culture encourages employees to form strong bonds with their coworkers, the organization, and their role. This will improve their work experience and increase their engagement.


Therefore, any factor influencing the ability of employees to find meaningful patterns or to feel connected to the company's culture will contribute to maintaining employment rates and ensuring engaged employees. This strategy will help people see themselves as having the perfect job and avoid quitting.

The impact of bad workplace culture on employee retention

If employees do not believe, understand or agree with the company culture they will often just look for a new job.


Creating and maintaining a culture that employees agree with and have aligned values with will allow job satisfaction to increase. Therefore, holding bad workplace culture is an important factor influencing whether an employee wishes to stay or leave that organization and has a direct effect on employee retention.


Toxic workplace culture will result in unengaged employees. Employee engagement is statistically the most important influence on employee retention. Thus, when an environment is created that does not encourage productivity or high levels of effort, employees are more likely to look for other jobs.


It is therefore the role of the senior leaders to ensure employees are given special recognition for their effort and skills in their work and prioritise the commitment of their workers.


Overcoming the problems of the company culture and maintaining the engagement of employees will lead to multiple benefits in terms of productivity and the level of employee turnover.


Employee retention will benefit greatly from a workplace culture that values open communication and the exchange of feedback. Regular meetings and other forms of communication that welcome and act on employee feedback are all critical components of establishing an open communication channel. This level of communication can shed light on the reasons why employees consider leaving and one of the main elements of workplace culture.

Taking the time to understand disgruntled employees allows organizations to work on areas of dissatisfaction. Companies that take the time to listen create a culture of loyalty, which will avoid a bad workplace culture and boost retention rates.

Create a unified purpose

Another way workplace culture can be improved is to ensure employees feel they are part of a team and understand the collaboration. When people see themselves as part of a group they are more likely to work harder towards the common goal.

This reflects the belonging component of Maslow's Hierarchy of needs which refers to the social needs of humans, including emotional relationships and friendships. These psychological predispositions explain that when employees feel unified they will be more productive.

Having motivated staff will never harm an organization, it will only allow for growth. Putting effort into ensuring this unified purpose will produce multiple benefits.

A sense of support

People value dedication and care. When people feel like their organization cares about their well-being and feel like their hard work is valued they are more likely to better perform at work, reduce absence and will have an increased interest in work.

A sense of support can be provided within the culture by ensuring fairness throughout, constant help and assistance provided by different managers and people in the leadership team and good job conditions, that make employees happy and comfortable.

Prioritise work-life balance

A good workplace culture recognizes employees' efforts and actively promotes work-life balance among their employees. It is critical to note that a workplace with a good work-life balance ensures business success, which leads to higher productivity, better engagement, and higher returns.

Paying attention to the well-being of its employers can help achieve maximum productivity. Those with a perfect work-life balance are less stressed, more motivated, and have a greater sense of well-being.

Job seekers often will prioritise looking for a company that will allow them to maintain their positive well-being by finding a perfect balance between their work and their personal life. Research has found that workers cited corporate culture as highly important when discussing how they felt about their position in their job.

Managers and executives should acknowledge the importance of promoting this work-life equality as this encouragement will allow any business to grow and be effective.

What makes a good Corporate culture


Overall, it is very clear that workplace culture has a strong impact on retention. Paying attention to the well-being of the people working and the level of happiness the workplace brings will be the main determinant of whether people decide to stay or leave the company.


Job seekers will look at the leadership within a corporation and if the culture is one they agree with, it will become highly desirable to work.

As well as the leadership team, it is also the role of the human resources team to prioritise improving the culture to avoid people leaving the company.

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