How Much Does Company Culture Really Matter? 40+ Real Business Metrics Impacted by Your People and Culture (with sources)!

Tired of hearing that “culture matters” without any proof? At BetterCulture, we understand your skepticism. That’s why we pulled together research from top academics and industry professionals to prove how much culture really matters.

We found 40 (and counting!) hard-hitting business metrics that point to one overwhelming conclusion: culture matters for absolutely everything in business!

From employee engagement to customer satisfaction to financial performance, organizational culture plays a vital role in success.

Browse our comprehensive compendium and learn what today’s competitive business environment demands from you as an organization leader: prioritize your company’s culture for ultimate growth!

40+ Business Metrics Affected by Company Culture (with source citations)

1. Employee Engagement. Yes, we’re starting with an easy one. A positive company culture fosters higher employee engagement. Engaged employees are more productive, innovative, loyal, happy, and valuable. [Gallup: State of the American Workplace] [Deloitte: Global Human Capital Trends]
2. Employee Retention. A strong culture contributes to higher employee retention rates, reducing the costs associated with turnover, such as recruitment, training, and lost productivity. [Bersin by Deloitte: New Research Unlocks the Secret of Employee Recognition]
3. Productivity. Positive company culture creates an environment where employees feel motivated, leading to increased efficiency and higher output. [University of Warwick: New Study Shows We Work Harder When We Are Happy]
4. Absenteeism. A positive work culture can reduce absenteeism (by up to 40%) by improving employee well-being and job satisfaction, resulting in fewer sick days and unplanned absences. [Gallup: The Right Culture: Not Just About Employee Satisfaction]
5. Customer Satisfaction. Employees in a positive work environment are much more likely to provide exceptional customer service, leading to higher customer satisfaction and loyalty. [American Express: 2017 Customer Service Barometer]
6. Innovation. A strong company culture will encourage creativity and collaboration and can drive innovation, helping businesses stay ahead of the competition and adapt to market changes. [Boston Consulting Group: The Most Innovative Companies] [Forbes: Why A Strong Company Culture Is The Newest Competitive Advantage]
7. Profitability. Increased productivity, employee retention, and customer satisfaction are likely to contribute to higher profitability for companies with a strong culture. [Gallup: How to Create a Profitable Company Culture] [Harvard Business School: Corporate Culture and Performance]
8. Operating Income. A positive culture with engaged workers who care about their organization’s success can lead to improved compliance, operating efficiency, and cost control, resulting in a higher operating income. [Harvard Business Review: Proof That Positive Work Cultures Are More Productive] [CFO Dive: The Financial Upside of Employee Recognition]
9. Employee Performance. Companies with a strong culture tend to have higher levels of employee performance, as employees feel more motivated and committed to achieving organizational goals. [McKinsey & Company: The Link Between Meaning and Organizational Health] [Towers Watson: The Global Workforce Study]
10. Employer Branding and Attracting Talent. A positive company culture can enhance a company’s reputation, making it more attractive to talent and increasing the overall quality of its workforce. [Harvard Business Review: Creating the Best Workplace on Earth]
11. Collaboration and Teamwork. A positive company culture fosters a sense of collaboration and teamwork, encouraging employees to work together effectively and support each other in achieving common goals. [Stanford Graduate School of Business: A Better Way to Think About Organizational Culture]
12. Decision-making. Organizations with a strong culture often have better decision-making processes, as employees feel empowered and trust one another, enabling them to make informed decisions more efficiently. [Forbes: Five Rules for Successful Business Decision-Making] [Bain & Company: Creating a Decision-Focused Culture]
13. Business Agility. A strong company culture enables greater business agility, as employees are more adaptable, innovative, and responsive to changes in the market or industry. [Harvard Business Review: The Agile C-Suite]
14. Employee Wellness. A supportive and healthy work environment contributes to improved mental and physical well-being among employees, reducing stress and burnout. [Harvard Business Review: 6 Causes of Burnout and How to Avoid Them] [World Health Organization: Healthy Workplaces]
15. Learning and Development. Companies with a strong culture are more likely to prioritize employee growth and development, leading to a more skilled and adaptable workforce. [Deloitte: Learning in the Flow of Life] [PwC: Upskilling Hopes and Fears]
16. Employee Loyalty. A positive company culture fosters a sense of loyalty among employees, increasing their commitment to the organization and reducing the likelihood of turnover. [Gallup: Employee Engagement on the Rise in the U.S.]
17. Work-Life Balance. Companies with a strong culture often promote a healthy work-life balance, which contributes to employee satisfaction, well-being, and long-term retention. [Harvard Business Review: The Surprising Benefits of Work/Life Balance] [Forbes: Attracting, Retaining, and Supporting Employees in the Modern World of Work ]
18. Ethical Behavior. A strong company culture fosters an environment where employees feel encouraged to act ethically and with integrity, which can have a positive impact on a company’s reputation and long-term success. [Ethical Systems: Company Culture Assessment] [Harvard Business Review: How to Design and Ethical Organization]
19. Quality of Products and Services. A strong company culture is likely to lead to higher quality products and services, as employees feel more engaged and committed to delivering their best work. [Forbes: The Direct Connection Between Employee Experience And Customer Experience] 
20. Market Share. Companies with a strong culture often experience increased market share, as their engaged employees contribute to customer satisfaction, innovation, and overall business success. [Harvard Business Review: The Leader’s Guide to Corporate Culture]
21. Talent Acquisition. A positive company culture attracts top talent, as job seekers are more likely to choose organizations with strong values, a supportive environment, and a reputation for employee satisfaction. [Glassdoor: How to Recruit Informed Candidates at Scale] [LinkedIn: Global Talent Trends 2020]
22. Employee Empowerment. A strong company culture encourages employee empowerment, leading to increased job satisfaction, higher productivity, and a more engaged workforce. [Gallup: Three Requirements for a Diverse and Inclusive Culture]
23. Crisis Management. Companies with a positive culture are better equipped to handle crises, as employees are more likely to be resilient, supportive, and committed to finding solutions. [Harvard Business Review: Build Your Resilience in the Face of a Crisis] [McKinsey & Company: Building Organizational Resilience]
24. Employee Satisfaction. A positive company culture contributes to higher employee satisfaction, as employees feel valued, supported, and engaged in their work. [Gallup: Employee Satisfaction Doesn’t Matter]
25. Reduced Workplace Conflict. A strong company culture helps to reduce workplace conflict by fostering a sense of shared values, meaningful personal relationships, clear communication, and respect among employees. [Harvard Business Review: How to Preempt Team Conflict] [Forbes: How to Resolve Conflict in the Workplace]
26. Diversity and Inclusion. A positive company culture promotes diversity and inclusion, leading to a more innovative, adaptable, and high-performing workforce. [McKinsey & Company: Delivering Through Diversity] [Boston Consulting Group: How Diverse Leadership Teams Boost Innovation]
27. Social Responsibility. Companies with strong cultures are more likely to prioritize social responsibility, which can enhance their reputation, attract customers and talent, and contribute to long-term success. [Forbes: The Five Elements of the Best CSR Programs]
28. Communication. A positive company culture encourages open and transparent communication, leading to improved collaboration, more effective decision-making, and higher employee engagement. [Forbes: Why Communication is Today’s Most Important Skill]
29. Organizational Alignment. A strong company culture aligns employees around a shared vision and values, resulting in a more unified and focused workforce. [Gallup: The Role of Mission and Vision in Employee Engagement]
30. Financial Performance. A positive company culture contributes to improved financial performance, as engaged and satisfied employees drive productivity, customer satisfaction, and innovation. [Gallup: How Employee Engagement Drives Growth]
31. Leadership Development. A positive company culture supports the development of effective leaders, who can guide the organization through challenges and drive business success. [Gallup: The One True Way to Maximize Infinite Potential]
32. Risk Management. A strong company culture can contribute to better risk management by fostering a sense of responsibility, ethical behavior, and effective communication among employees. [Forbes: Why Culture Is The Heart Of Organizational Innovation] [Deloitte: Cultivating a Risk intelligent Culture]
33. Customer Loyalty. A positive company culture can lead to higher levels of customer loyalty, as engaged employees are more likely to provide excellent customer service and create strong relationships. [Gallup: The New Competitive Advantage] [Harvard Business Review: How Company Culture Shapes Employee Motivation]
34. Team Cohesion. Companies with strong cultures foster team cohesion, as employees share common values, trust, and a commitment to achieving organizational goals. [Harvard Business Review: The New Science of Building Great Teams] 
35. Collaboration and Knowledge Sharing. A strong company culture encourages collaboration and knowledge sharing, leading to better decision-making, increased innovation, and improved overall performance. [Harvard Business Review: Cracking the Code of Sustained Collaboration] 
36. Employee Advocacy. Companies with a positive culture often have employees who act as brand advocates, sharing positive experiences and promoting the organization to others, both online and offline. [Forbes: How To Turn Employees Into Brand Advocates] [Harvard Business Review: How to Turn Your Employees into Brand Advocates]
37. Retention of High Performers. A strong company culture helps retain high-performing employees, as they feel valued, engaged, and motivated to continue contributing to the organization’s success. [Gallup: How to Keep High-Performing Employees Engaged and Motivated]
38. Organizational Resilience. A positive company culture contributes to organizational resilience, as employees are more adaptable, committed, and able to navigate challenges and disruptions. [Harvard Business Review: The 4 Things Resilient Teams Do] [Forbes: The Four Components of a Resilient Culture]
39. Higher Employee Satisfaction. A strong company culture leads to higher employee satisfaction, as it fosters a supportive work environment, clear communication, and shared values. [Gallup: Employee Satisfaction Doesn’t Matter]
40. Adaptability to Change. A positive company culture enhances employees’ adaptability to change, making it easier for organizations to implement new strategies, technologies, and processes. [Harvard Business Review: The Key to Adaptable Companies Is Relentlessly Developing People] [Forbes: Adaptability: The Key Leadership Trait in the Digital Transformation]
41. Better Conflict Resolution. A strong company culture supports effective conflict resolution, as employees have clear communication channels, trust, and a shared understanding of organizational values and goals. [Harvard Business Review: The Secrets of Great Teamwork]
42. Stronger Talent Pipeline. Companies with a positive culture often have a stronger talent pipeline, as they prioritize employee development, internal promotions, and succession planning. [Harvard Business Review: Why Leadership Development Isn’t Developing Leaders]
43. More Effective Performance Management. A strong company culture supports more effective performance management, as employees receive regular feedback, feel engaged in their work, and understand how their performance contributes to organizational success. [Harvard Business Review: Reinventing Performance Management]

Wow, that’s quite a compelling list! If you’d like to know how BetterCulture can help you strengthen your company culture and achieve those valuable outcomes, schedule a call or email us at info@betterculture.com.