Staffing

How Company Culture Affects Employee Retention

Tiffany Moore headshot.
Tiffany Moore
VP, Client Partnerships
June 15, 2022
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Company culture is a vital part of any organization. Employers may recognize this, but they might not know just how much it can impact an employee’s experience. Recent research should help employers realize how improving company culture can reduce turnover, and in turn, increase profits. And That’s Good HR can help you with both hiring and employee retention as your positive company culture grows. 

The numbers on company culture

Founded in 1810, The Hartford is one of the oldest providers for insurance and benefits in the country. Their recent survey, called the “Future of Benefits Study,” found a major disconnect between employer and employee company culture and other workplace opinions. At 59%, a majority of U.S. workers said it would be easy to find a new job, and a third have either moved to a new company over the past year or plan to within the next 12 months. 

The top reason to leave a job according to those surveyed was, unsurprisingly, higher wages at 47%. However, the next highest reason was a better workplace culture at 33%. But on the other hand, only 14% of employers have recognized that company culture was a factor in an employee’s decision to leave their organization. 

Employer and employee disconnect

Another disconnect came in benefit packages, with 71% of employers saying “the benefits package they offer to their employees to be better than many of the packages offered by their competitors,” and only 55% of their workers agreeing. Additionally, 69% of employers believe that their employees feel job satisfaction, but less than the majority of workers agree at just 48%. And when it comes to work stress, 28% of employees described their company culture as stressful as compared to 11% of their employers. 

Finding the right culture fit

If there is such a big disconnect between what employers and employees think of company culture, how can we fix it? That’s Good HR recommends taking a look at your hiring and onboarding processes. As you work through interviewing and hiring candidates, look specifically for individuals who fit in well with your culture and their future coworkers. As Forbes suggests, that could also mean reevaluating and better aligning your existing culture with “the vision and goals of the company.”

When you conduct an interview for a new candidate at your organization, they aren’t just selling themselves to you, you’re selling the company to them too. Make sure to be knowledgeable on your company’s vision and culture in order to show candidates what type of team they would be joining. Do your research on each interviewee, and conduct your meeting to highlight what they are most likely to find appealing about your office. 

When problems arise

At That’s Good HR, our artful employee placements don’t just stop once a candidate has been hired. Whether your position is in human resources, administration, customer service, healthcare or accounting, we are expert problem-solvers when things go awry. And the beauty of our temporary and temp-to-hire placements is that both our employers and our candidates can test it out to make sure both the position and the company culture are the best fit for everyone involved. 

Are you ready to increase employee retention by improving company culture? Let That’s Good HR help! Contact us today at 317-469-4141 to learn more about what it’s like to partner with our staffing specialists for your next hiring process. 

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