How to Create a Company Culture That Drives Employee Retention

PRemployer on July 29, 2019

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Employee turnover is a major concern for today's employers, causing them to incur significant costs because of vacancies, hiring, training and other related expenses. Fortunately, many of the factors that cause employee turnover are under your control and can be improved to increase retention of employees. One of the most important factors to consider when trying to minimize employee turnover is company culture. Let’s discuss the steps you can take to build a strong, desirable company culture that drives employee retention.

How Company Culture Impacts Employee Retention


Building a positive and engaging company culture is critical to retaining the best employees, which in turn drives profitability. In fact, according to a recent survey of 2,000 employees, almost half (43 percent) listed company culture as the main reason they’re looking for a new job. 

In addition, employees who rate their company culture poorly are 24 percent more likely to leave their organizations within a year's time than those who do not rate it poorly. Furthermore, studies show that employee engagement can lower turnover rates by as much as 24 percent, thus providing even more support for the idea that good company culture is invaluable. Since lower employee turnover rates are directly correlated with profitability, these statistics should not be ignored.

How to Build a Culture That Drives Employee Retention

If you want to build a company culture that drives employee retention and maximizes productivity, you need to be proactive. To develop an attractive company culture, follow these steps:

1. Define your values

Before you can build a positive and engaging culture, you need to understand your goals. Establish a clear definition of the culture you hope to create at your company and communicate these ideas to every member of your staff.

2. Assess your current culture

Whether or not you have been intentionally developing one, some sort of culture already exists. Evaluate your current company culture and compare it to your goals. Pay particular attention to the aspects of your company culture you would like to change or improve.

3. Promote your company culture

In order to foster the strong, desirable culture you desire, you need to disseminate the message among current and potential employees. This typically involves creating marketing materials that demonstrate your company brand and communicate your values clearly.

4. Optimize your hiring process

Every company needs a clear, well-defined process for seeking out, screening and hiring new employees. In some cases, you may find candidates that are well-qualified but wouldn't fit in well with your company culture. Thus, one of the most important components of the hiring process needs to focus on determining whether each candidate will be a good fit.

5. Reinforce your company culture consistently

Your company culture must be driven by the company leadership and consistently reinforced each day in the way people interact and communicate with one another. Look for ways to reinforce your company culture on a regular basis so your employees are more likely to uphold the values you have established. Examples include scheduled events and awards for employees who set a good example for others.

Your company culture plays an important role in your ability to retain quality employees. In order to maximize employee retention and productivity, you need to make sure you are actively building the right kind of culture within your company. Using the tips above, you can promote a culture that attracts the best talent and minimizes the effects of employee turnover.

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