Revamp Company Culture: A Wise Investment

Here’s a topline view of US staff transitions over the past five years:

• 2020: Panicked layoffs
• 2021: Frantic hiring
• 2022: The Great Resignation
• 2023: Post-pandemic layoffs
• 2024: Continued mix of aggressive hiring and layoffs

The outcome of such volatile changeovers inevitably leads to workforce insecurity in desperate search of security – for both workers and employers. And make no mistake, no matter what your company culture was like before the pandemic, it’s been through a rough patch. Now is a good time to get it back on track or rebuild from scratch.

As we enter 2025 – a quarter century into the new Millenium – it’s safe to say that the workplace has changed exponentially during this timeframe. It all started out with fears of

Y2K, the potential for a computer glitch triggering the failure of banks, electrical grids, and nuclear power stations, to name but a few. It was not a great way to enter a new century, but fortunately our fears were assuaged and global technological calamity was avoided.

However, Y2K did bring the focus on technology (and security) to the forefront, launching advances in smartphones, apps, Bluetooth, social media/influencing, 24/7 news and disinformation, video conferencing, online dating, and travel (Uber, Airbnb) in ways previously unimaginable. Moreover, today nearly a quarter of the workforce (23.8%, according to US labor statistics as of October 2024) works remotely to some degree. Sixteen percent of companies operate fully remote without a physical office.

These changes, largely considered advancements, do however present certain challenges – particularly with regard to a carefully nurtured and sustainable corporate culture. Perhaps it’s time to examine why employee culture is so important and how to shape a resilient one.

Value of Human Life

First and foremost, workers have a genuine and justified fear of being replaced by technology. We’ve seen rampant advancements in recent years in the areas of automation, robotics, and generative artificial intelligence (e.g., chatbots, ChatGPT). The more sophisticated these technologies become, the less need for human resources. And while culture might be easier to manage in a company full of robots and apps, the humans left to oversee them may feel alienated and devalued. Therefore, no matter the size of the organization in terms of headcount, it is vital that employers stay connected to their workforce and foster engagement, trust, respect, and loyalty.

Cost of Turnover

Studies show that the rate of turnover in the US is as high as 20 percent a year (approximately six percent involuntary; 13 percent voluntary). When workers are unhappy, they tend to leave – especially the competent ones who can always find new employment. The cost of turnover has both hard and soft impacts. For instance, the cost of replacing a worker equals about six to nine months of his salary in recruiting and training expenses alone.

But that doesn’t reflect the trailing costs, like a loss of productivity while the position remains open and a new hire gets up to speed. When incumbent workers have to pick up the slack, this can generate feelings of resentment, disengagement, and even envy – which can lead to more workers seeking other employment. Turnover can have a snowball effect if not buttressed by a competitive package of compensation and benefits, responsive human resources, appreciation, and goodwill.

How To Sabotage Work Culture

Perhaps the first step to building a supportive environment is identifying what destroys it. For example, 37 percent of remote workers say their employer monitors their online activity, and that’s on top of the onsite workers who can be easily surveilled while conferring with coworkers or even tucked away at their workstation. Understandably, these tactics convey a lack of privacy and trust in the workforce.

A company that uses monitoring software should be transparent about it, and detail what types of behaviors or patterns of behaviors are important to the employer versus what is considered irrelevant and trivial. After all, recognize that there is no point in making workers feel paranoid; let them know exactly the parameters appropriate for workplace behavior and productivity so they understand your motives and know where the boundaries are set. Do not underestimate the value of trust: Studies by Gallup have found that companies in which trust is predominant among workers outperform their untrustworthy peers by 186%.

Another important component of employee morale and engagement is a respectful workplace culture. Workers and their managers should be held accountable for toxic activities such as gossip and spreading rumors, backstabbing, brownnosing, stealing credit, unfair promotions, and unequal pay. These are just some of the issues that poison workplace culture.

Furthermore, reorganizations can be very damaging. When top management views people as interchangeable parts, without regard to their experience, education, needs, interests, and talents, it sends the message that the whole is more important than the sum of its parts. That may be effective at cutting costs, but at the expense of worker loyalty and turnover.

How To Craft a Viable Work Culture

The following are some of the building blocks for creating a foundation of security and trust.

Management Training

A recent study found that more than half (57%) of workers left their jobs because of their direct manager or company leadership. Poor management facilitates a dysfunctional work environment via withheld communication, favoritism/prejudice, lack of recognition, and micromanagement. To build a trustworthy employee culture, managers should be trained in soft skills, such as listening, emotional intelligence, fairness, and empathy.

Upskilling/Reskilling

If reorganization or a company redirection is necessary, workforce needs should be considered a priority. If workers don’t have the skill sets to support the new vision, consider training, educating, upskilling or reskilling opportunities as part of the restructure. Communicate the new direction and find out which workers are willing to undergo transition and which ones would rather seek another employer. Work with what you have before seeking outsiders. After all, there are some situations in which upskilling incumbents can be more effective and less costly than hiring someone from the outside and getting them up to speed with company processes.

Integration/Platforming

Also recognize that new hires can have a dramatic influence on corporate culture, particularly in higher ranks. If they are warm and receptive, willing to learn the ropes and get to know people while making incremental changes, they are more likely to be accepted. However, change-agent henchmen are often more focused on their assigned objectives than on people’s feelings and past contributions. Employers should craft a new-hire orientation program designed to emphasize the importance of treating coworkers with respect and building trust while accomplishing goals. 

Also, consider pairing each new hire with a willing incumbent to help them adapt to their new job and have a go-to resource for questions ranging from the complex to the simplest (e.g., who do I call if I’m running late?). This tactic can be particularly helpful for remote workers to foster friendship, connection, and belonging. But perhaps more importantly, make sure you take care of incumbent mentors by not adding to their workload and by compensating them in meaningful ways (e.g., extra time off when needed).

Internal Mobility

A new report by iCIMS found that 60% of employees were expecting a new promotion in 2024, and half of them said they’d look for a new job if they didn’t get it. This data suggests that workers do not wish to remain in an environment that offers low potential for their future. To develop a supportive culture, employers should offer each worker career development opportunities with a career path toward better prospects, better pay, better work-life balance, and a better lifestyle for themselves and their families.

Promote Communication But Set Boundaries

Communicate various options for discussions. For example, if a worker (or a team of workers) has a problem with their immediate supervisor, they should know who they can speak to confidentially to get help with their concerns.

Balance the need for communications. For example, schedule company messages so that worker inboxes are not filled with administrative emails every morning. Be particularly conscious of this during open enrollment season. Another example is balancing the need for updates with autonomy, especially with remote workers. Train managers on how to navigate the delicate balance between ‘touching base’ and micromanagement.

Be cognizant of the considerable rift in politically-minded workers over the next few years. You may want to communicate that certain topics should be discussed outside of the work environment to prevent unnecessary conflicts between workers. By the same token, give managers guidelines on how to mitigate these types of arguments should they arise.

One of the keys to developing a responsive company culture is to understand what your labor force wants. To do this, foster a high-feedback environment. Start with an initial survey to help you understand how employees feel about the organization’s current culture. As you rebuild from within, take frequent pulse surveys to ask how changes are perceived and consider implementing suggestions for improvement. According to a survey by Achievers Workforce Institute, 64% of workers consider resigning due to their “lack of being heard”.

Employers can learn a lot through exit interviews. Communicate that this is not a bridge- burning scenario. Emphasize confidentiality and that the HR department sincerely wants to understand the reasons why employees depart. For top talent, convey the desire to work on issues and leave open the door to welcome them back in the future.

Take Care of HR

According to the latest SHRM State of the Workplace Report, more than half of HR departments are understaffed and overworked. Burdened with the responsibility of managing a complex web of benefits, the fallout of toxic management, and the potential for political upheaval, human resource personnel are understandably stressed out and at high risk of burnout. If your goal is to improve employee culture, the first place to start is with the morale and welfare of this department.

To attract and retain competent workers, make your workplace culture more enticing than others. Despite the impact of volatile times (e.g., economic, political, natural disasters, pandemics), workers should have no doubt that no matter the circumstance, remaining with their current employer is far better than rolling the dice somewhere else.

That in itself is a reason to invest in a strong corporate culture.

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