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The Ripple Effect: How Company Culture Boosts Your Business

The ROI of Company Culture

Only 22% of executives report that their companies are excellent at building a differentiated employee experience. And almost 60% state they’re not ready to address employee experience at their organizations. According to this study, it’s a question many leaders are asking themselves:

Why is company culture so important?

Well, we’re glad you asked! A constructive, positive, supportive employee experience — or, a high-performing company culture — has a ripple effect. In building a winning culture, you’ll also build an engaged employee base. That improved engagement, in turn, directly impacts your bottom line: companies with highly engaged employees outperform their peers by 147% in earnings per share, according to Gallup.

Undervaluing the power of company culture can directly impact your team and business. So read on to learn more about the power your culture has to improve your business.

Why Improving Company Culture Boosts Your Business

Organizational culture is made up of the rules, behaviors, policies, and social norms that guide your employee behavior. Or, as we like to put it, culture is how and why things get done within an organization.

Engagement is a direct outcome of a strong company culture. Once employees clearly understand their culture, they can focus on succeeding in their roles and beyond — rather than worrying about unclear expectations. Overall, an engaged employee is more:

  • Connected to your company’s mission
  • Motivated to exceed their goals
  • Proactive about learning new skills and starting new projects
  • Positive in their approach to work
  • Creative in solving problems
  • Committed to developing their careers at your organization

Connection. Motivation. Commitment. These behaviors are all key to your company’s success. With the power of an engaged workforce behind you, your company will improve retention, productivity, and your bottom line.

Still need more convincing? Or perhaps, help convincing someone else? Here is a quick cheat sheet on the ROI of company culture:

Engaged Employees Stay Longer

The more disengaged employees feel from their jobs, the more likely they are to leave. 73% of disengaged employees are actively looking for jobs, in fact, compared with 37% of engaged employees. This turnover comes with a price too. Replacing an employee can cost your company six to nine months’ salary.

How should leaders rise to the occasion?

Download our executive brief

Engaged Employees Are More Productive

Organizations with highly engaged employees see 21% more productivity. Why? Employees are more tuned into your company’s mission and, as a result, also more committed to helping your company achieve that mission.

Your Customers Will Be Happier

Happy employees translate to happy customers. Organizations with highly engaged workforces see twice the customer loyalty over organizations with average employee engagement levels.

Affects Your Bottom Line

Last but not least, engaged employees are more likely to help drive your company towards success. According to Workplace Research Foundation, increasing your investment into engagement by 10% can increase your profits by $2,400 per employee each year.


How about that!

Yet, despite the importance of building a high-performance company culture in order to boost engagement, only about 25% of business leaders have an employee engagement strategy in place. If you fall in the remaining 75% and you’re not sure where to start, check out our report that details trends from high-performance cultures.



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