Supportive Company Culture

Avoid Employee Turnover Through A Positive Company Culture

Scott Dieckgraefe Insight

Peter Drucker coined the phrase, “Culture eats strategy for breakfast,” implying that even the best strategy will fail if the company lacks a culture that engages and encourages their employees. At Studio/D, we’ve witnessed both sides of this adage with our clients.

Many companies love to cue up the old Sister Sledge hit and proclaim, “We Are Family!” Yet employees can see through a potential ruse, and if the company doesn’t back up their claim with a supporting culture, they will experience higher than average turnover.

That’s bad news, as noted in a 2023 FlexJobs survey that found, “42% of workers are actively considering quitting their jobs right now, [while] another 20% reported that they had recently quit their job.” This means that almost two-thirds of employed workers have recently quit or actively want to quit their jobs.

When asked why they quit or were considering it, the top four reasons cited were:

1. Poor work-life balance (29%),

2. Low or unfair pay (28%);

3. Toxic company culture (27%); and

4. Felt disrespected/undervalued (26%).

Employers should take note that three of these reasons for quitting involve culture issues that rank just as importantly as pay. And they should also be aware of the financial costs associated with replenishing their work force. According to Harrison HR, the cost to replace an employee varies between 30% and 150% of their salary, when hiring costs are added to recruitment, onboarding and training costs.

So, what can employers do to improve their workplace culture and avoid employee turnover with its attendant financial stress?

We’ve identified several areas of focus that can help build a positive company culture in order to retain a happy, productive workforce. Simply put, these recommendations will assist any company to support their employees, while demonstrating integrity and commitment to employee well-being. To succeed, culture must be tangibly felt and experienced by everyone at your company.

Here are six practices to help ensure a positive company culture.

  1. Promote employee engagement

The emotional and psychological commitment an employee has toward their organization is key to their and the company’s success. Engaged employees are enthusiastic about their work and are willing to go the extra mile to achieve organizational goals. They truly feel and behave as a team. A positive company culture fosters engagement by creating a supportive environment where employees feel empowered and motivated.

According to Gallup’s State of the Global Workplace report, organizations with high employee engagement experience 21% higher profitability and 59% lower turnover. Engaged employees are more likely to stay with their employer, as they are emotionally invested in their work and the organization’s success. By promoting a culture of engagement, companies can significantly reduce employee turnover rates.

  • Foster a sense of community

When employees feel connected to their colleagues and part of a supportive team, they are more likely to enjoy their work environment and remain with the organization. Social interactions and strong interpersonal relationships contribute to a positive work experience and enhance employee loyalty.

  • Build trust through transparency

Employees need to trust their leaders and feel that the organization operates with integrity. Transparent communication, where information is openly shared, fosters trust and reduces uncertainty, contributing to a more stable work environment. When employees trust their leaders and believe in the organization’s mission and values, they are more likely to stay with the company. Trust reduces fear of the unknown and creates a sense of security.

  • Be mindful of (and flexible with) work-life balance

Employees who struggle to balance their professional and personal lives are more likely to experience burnout and job dissatisfaction, leading to higher turnover rates. A positive company culture prioritizes work-life balance by offering flexible work arrangements, encouraging regular breaks, and supporting employees’ personal needs. When employees feel that their employer cares about their overall quality of life, they are more likely to remain committed to the organization.

  • Encourage professional development

A positive company culture emphasizes continuous learning and development, providing employees with the resources and support they need to advance their careers. This can include offering training programs, mentorship opportunities, and clear pathways for career advancement. Employees who see a future with their organization and feel supported in their professional growth are simply less likely to seek opportunities elsewhere.

  • Show appreciation of your employees’ value

Employees who are content with their job are less likely to leave the organization. A positive company culture directly contributes to job satisfaction by creating an environment where employees feel valued and appreciated. When employees perceive that their contributions are recognized and rewarded, their job satisfaction increases, reducing the likelihood of turnover.

While there are many other factors that can contribute to employee satisfaction and loyalty, a positive company culture stands out as a pivotal element in employee retention. The more business leaders truly invest in their employees and, most importantly, demonstrate that investment by continually fostering a positive work environment, the more they will be rewarded by an engaged and motivated team of colleagues dedicated to achieving success, while dramatically reducing the costs associated with replacing turnover.

Studio/D is a full-service marketing communications firm working with mid-market industrial and manufacturing clients, together with companies that support the manufacturing ecosystem. We’re a team of “makers” who simplify complex communication challenges with messaging that engages and drives results. Learn more about us at, or call our president, Scott Dieckgraefe at 314-200-2630.