Company culture statistics: Everything you need to know

“Culture eats strategy for breakfast.”

This quote by management consultant Peter Drucker sums up the importance of an effective workplace culture for organizational success. But how does culture affect employees and businesses, and what can they do to improve it?

Read our complete list of company culture statistics for these insights and more.

How we researched this topic

To prepare this article, we read various workplace culture reports and studies, including those from large industry leaders such as the Society for Human Resource Management (SHRM), Deloitte, PwC, and Gallup. These statistics are at most five years old. 

Key takeaways

• Company culture is the shared values, attitudes, and behaviors of members of an organization. 

• A positive company culture profoundly affects key performance indicators, including employee engagement, retention, and productivity. 

• A poor company culture typically contributes to higher employee turnover and undermines financial performance. 

• By reviewing various company culture statistics, we can gain valuable insights into the importance of organizational culture, its impact on employees, and how to improve it. 

What is company culture?

Before we dive into the statistics, let’s be clear on what we’re talking about. Company culture refers to the shared values, attitudes, beliefs, and behaviors of all employees within an organization. 

The characteristics of a positive workplace culture often include:

• Clear communication.

• Transparent decision-making.

• An environment of mutual respect between employees.

• A strong sense of belonging.

• Diversity.

• High levels of collaboration.

• A high degree of psychological safety for employees.

The importance of company culture: Key numbers

Why culture matters to candidates:

• Two out of three UK employees would turn down a job offer from a company with a toxic workplace culture. 

• Workplace culture is vital to Gen Zs and millennials. 44% of Gen Zs and 40% of millennials have rejected a potential employer who doesn’t align with their values. 

• A toxic work culture can damage employer branding and impact your ability to attract top talent. 45% of employees say they would warn others or write a negative review about companies with bad cultures. 

Why culture matters to employees:

• A thriving and positive company culture is a powerful tool for increasing employee retention. Workers who rate their workplace culture highly are:

  • 790% more likely to feel satisfied at work.

  • 83% less likely to be looking for a new job. 

• Employees working in a positive workplace culture are 3.8 times more likely to be engaged than those who don’t. 

Why culture matters to businesses:

• On average, businesses that actively cultivate workplace culture achieve 516% greater revenue growth over 10 years than those that don’t. 

• In 2020, the top 100 employers to work for financially outperformed the broader market by 16.5%. 

• Over a three-year period, a strong organizational culture improves employee engagement by 50% and workforce growth by 25%. 

• 69% of businesses that adapted during the COVID-19 pandemic cited culture as a competitive advantage. 

• 91% of US CEOs agreed that culture improved or significantly improved their organization’s bottom line. 

Current trends in company culture

The state of workplace culture today:

• Between 2021 and 2023, the number of organizations investing in DEI strategies other than compliance decreased from 71% to 60%. 

• In 2023, 75% of employees felt excluded at work. 

• 51% of workers are highly satisfied with their job. 

• 33% of US employees feel engaged at work, and only 32% strongly agree that their company’s purposes make them think their work is important. 

  

Workplace culture in the future:

• 74% of professionals predict the significance of company culture will increase in today’s market. 

Remote vs. on-site culture:

• Only 28% of remote employees said they feel connected to the mission and purpose of their employer. 

• 58% of remote workers feel they make a difference to their company, compared to 65% of in-person employees. 

Costs of poor company culture

The business impact of a toxic culture:

• In a median-size S&P 500 company, lost productivity due to disengaged employees costs between $228 and $335 million each year. 

• Employees are 10.4 times more likely to leave a job because of a toxic company culture than their pay. 

• Between 2014 and 2019, turnover due to workplace culture cost US employers $223 billion. 

Impact on employee well-being:

• 65% of employees say a negative culture undermines their well-being and job satisfaction. 

• 89% of employees who work in a toxic workplace environment report feeling less psychologically safe. 

• 73% of workers say a toxic workplace culture contributes to their burnout. 

• 78% of employees say a healthy and sustainable work culture is moderately, very, or extremely helpful in supporting their mental health. 

• Employees subject to bad management practices are almost 60% more likely to be stressed than those who aren’t. 

What employees value in company culture:

• An analysis of 1.4 million Glassdoor reviews found that feeling respected, having supportive leaders, and leaders who live core values are the top three elements of culture that matter most to employees. 

• A separate study of Glassdoor reviews revealed five attributes that negatively impact workers' reviews of their company’s culture: disrespectful, non-inclusive, unethical, cutthroat, and abusive. 

• 76% of candidates say a diverse workforce is important when considering potential new employers. 

• 87% of Gen Zs say workplace DEI is very important. 

Data on the role of leadership in culture:

• 52% of C-suite executives and managers say leadership development is the most impactful strategy for improving organizational culture. 

• 81% of employees say a lack of empathy from leadership and management contributes to toxic workplace cultures. 

Industry-specific culture insights

Comparing culture across industries:

• Only 25% of finance professionals wouldn’t recommend the industry to Gen Z applicants. 53% say this is due to high levels of burnout and poor work-life balance. 

• 59% of tech workers say they find meaning in their work, with 67% intending to stay with their employer long-term. 

• In comparison, only 38% of retail workers find meaning in their work, with 44% stating they intend to stay long-term. 

Measuring and monitoring company culture

Key metrics for assessing culture:

• The global employee engagement software market is expected to reach $3,610.5 million by 2032. 

• 80% of companies support employee resource groups. 

• 77% of workers would like to give their employers feedback more than once a year. 

• 75% of employers use engagement surveys as a listening channel, while only 47% use pulse surveys. 

Improving company culture: The data-backed approach

What works according to the numbers:

• Equitable leadership practices and career fulfillment are the top key factors influencing employees’ perceptions of their workplace culture, regardless of their geographic location.

  • When equitable leadership practices are present, employees are 19 times more likely to say their workplace culture is good or excellent. 

  • When employees experience high levels of career fulfillment, they are 12 times more likely to say their workplace culture is good or excellent.

• Employees in workplaces that intentionally invest in inclusion are three times more likely to feel included than employees whose workplaces seemingly don’t invest. Moreover, employees who feel like they belong at work are four to eight times more likely to stay with their employer. 

• When recognition is integrated into organizational culture, the likelihood of having a strong workplace community increases by 387%. 

• Leaders who encourage and respond to worker feedback increase the odds of employees feeling like they belong by 290% and reduce the odds of employee burnout by 66%. 

• By recognizing double the number of employees for good work in the last seven days, businesses with 10,000 employees can improve productivity by 9% and reduce absenteeism by 22%. 

• Employees whose company cultures prioritize purpose, opportunity, and success are 82%, 83%, and 85%, respectively, less likely to suffer from burnout. 

• 69% of employees identify communication channels and technology, like a company intranet, as a significant contribution to a positive workplace culture. 

ROI of investments in culture:

• A business that introduced an employee experience and people analytics platform:

  • Increased profitability by $963,000.

  • Reduced turnovers by $1.2 million.

Level up your hiring process with talent assessments

With these statistics in mind, you can see exactly why “culture eats strategy for breakfast.” 

Organizational culture is paramount to building an engaged workforce where employee well-being and belonging are prioritized. Taking a culture-centric approach unlocks benefits for your employees and your business, including better financial outcomes. 

The numbers highlight various strategies to create a positive workplace culture, including equitable leadership practices, intentional inclusion, and employee feedback and recognition.

When hiring new employees, insights into how they will contribute to your culture are invaluable. Using a multi-measure assessment tool that includes a culture-add test – like TestGorilla – is a great way to shortlist the most skilled candidates for the role. 

To see how TestGorilla can help you create an effective culture through hiring, sign up for a free demo or try our free plan today. 

FAQs

What does poor company culture look like?

Examples of poor company culture include ill-defined company values, a lack of transparency, bullying, and unrealistic work hours. These situations can result in higher employee burnout and turnover and lower employee engagement and productivity.  

How do you measure company culture?

You can use several metrics to measure company culture, including employee retention, employee Net Promoter Score, employee engagement, DEI, and productivity.