42 Shocking Company Culture Statistics You Need to Know
The secret’s out: a great company culture is a key component of a successful business. Both employees and employers are aware of this and use it to inform their career choices and business strategies. Today, HR representatives and recruiters are going to great lengths to ensure their organizational culture stands out from the pack and attracts the top candidates they desire.
A positive work culture has been linked to improved employee engagement, increased productivity and higher profit margins. Curious how much of a difference a winning company culture can make? Read on for 42 facts about the value and importance of an engaging company culture.
Table of Contents
- Culture Is a Top Priority Among Job Seekers
- Retention Relies Heavily on Great Culture
- The Importance of Relationships with Managers
- Salary Isn't Everything
- How Leadership and Business Strategy Impact Company Culture
- The Impact of Flexible Work on Company Culture
- How Professional Purpose Improves Culture
- The Importance of Professional Development
- Feedback Matters
- Company Culture and Work-Life Balance
- How Employee Recognition Improves Culture
CULTURE IS A TOP PRIORITY AMONG JOB SEEKERS
46% of job seekers cite company culture as very important when choosing to apply to a company.
In a candidate’s market, most job seekers are screening potential employers by their company culture. 46% of candidates believe culture is very important in the application process, with a grand total of 88% of job seekers citing it as at least of relative importance.
47% of active job seekers cite company culture as their driving reason for looking for work.
If your company culture is successful, it will turn employees into brand ambassadors. If it’s not, you’ll turn candidates away.
50% of married job seekers evaluate company culture when applying to a job compared to 41% of single candidates.
It makes sense that married job seekers care a lot about their relationships in the office, but the fact that all candidates place a high value on company culture should emphasize its importance.
15% of job seekers turned down a job offer because of the company’s culture.
Similarly, candidates won’t take a job if it means being part of a poor company culture.
35% of American workers say they would pass on the perfect job if they felt the company culture wasn’t a good fit.
No matter how qualified they are for the job and how excited they are about the work, more than a third of U.S. employees will turn down an offer if the company culture isn’t right.
Retention Relies Heavily on Great Culture
Employees are 26% more likely to leave their jobs if they feel there is a lack of respect between colleagues.
Communication and mutual respect are the cornerstones of a successful workplace culture. If your team members don’t treat one another with respect, you’re more likely to lose employees.
Employees who don’t like their organization’s culture are 24% more likely to quit.
56% of millennials believe that an employee should stay at the same company for more than 20 years.
Contrary to popular belief, more than half of millennials are inclined to stay at a single job for a majority of their professional life, so don’t rule them out as automatic turnover. Instead, make your culture a reason they’ll want to stick around.
THE IMPORTANCE OF RELATIONSHIPS WITH MANAGERS
Employees who rate their managers poorly are four times more likely to interview for other positions when compared to their peers.
Managers have a direct impact on the employee experience. If managers offer little flexibility and are unapproachable, it will create an off-putting company culture that pushes employees to look elsewhere.
Employees are 23% more likely to stay at A company if their manager clearly explains their role and responsibilities.
91% of managers in the U.S. say a candidate’s alignment with the company culture is equal to or more important than skills and experience.
Not only do employees expect respect and guidance from their supervisors, but managers look for cultural alignment in their direct reports. However, following the cultural-add recruitment model will do more to improve your organization and strengthen employees' experiences.
SALARY ISN’T EVERYTHING
One-third of job seekers report being willing to take a 10% pay cut for a job they are passionate about.
While compensation is a crucial deciding factor in a job search, 32% of job seekers are willing to settle for a lower-paying job if it means the corporate culture and work is more aligned with their goals.
58% of employees would stay at a lower-paying job if it meant working for a great boss.
Managers have a tremendous impact on employee experience and a majority of employees would prioritize their relationship with their manager over compensation.
To a majority of today’s talent pool, job quality matters more than how much they’re being paid.
60% of U.S. employees would accept a job they love that pays half their current salary over a job they hate that pays double their current salary.
HOW LEADERSHIP AND BUSINESS STRATEGY IMPACT COMPANY CULTURE
61% of employees cite trust in and with senior management as important to their satisfaction.
Prioritize a culture of transparency and open communication to boost satisfaction and keep employees engaged.
88% of employees believe a strong company culture is key to business success.
A positive work culture is linked to higher rates of employee engagement, which has been shown to improve productivity and profitability. A majority of employees recognize this and understand the value of company culture to an organization’s long-term success.
And 94% of executives feel the same.
Leaders also understand the impact a great workplace culture can have on a company's bottom line.
76% of employees believe that a well-defined business strategy helps cultivate a positive work culture.
Employees want to know that there’s a method to your madness. Having a clearly defined mission statement and objectives will foster a positive company culture centered around professional purpose.
THE IMPACT OF FLEXIBLE WORK ON COMPANY CULTURE
76% OF EMPLOYEES REPORT SEEKING JOBS WITH MORE FLEXIBILITY BECAUSE OF WORK-LIFE BALANCE.
Flexible hours and remote work opportunities make it easier for employees to maintain a healthy work-life balance, which more than three-quarters of job seekers want.
36% OF EMPLOYEES CONSIDERED LEAVING THEIR JOBS BECAUSE THEY CAN’T WORK REMOTELY.
Simply put, flexible work schedules are important to employees. Things come up unexpectedly and your employees deserve the ability to manage their work responsibilities with life outside of the office.
28% of workers say they would take a pay cut for the opportunity to work remotely.
More than a quarter of employees are willing to work for smaller salaries if it means they can work from home.
65% of employees 55 years or older report being more likely to take a job offer if it involves telecommuting opportunities.
Remote work is not just on a millennial's list of job requirements. You can sign on experienced candidates by making flexible work part of your organization.
65% of employees think they would be more productive at home than in the office.
Remote work eliminates several distractions from the office, including meetings and idle chit chat. While the relationship between employees may take a slight hit, you can improve productivity across the board.
77% of employees say flexible work options would enable them to lead healthier lives.
You want your employees to be happy and healthy, both inside and outside of the office, and over 77% of employees believe they’ll be better equipped to do so if they’re given more flexibility during business hours.
86% of workers believe they would be less stressed if they had a flexible job.
High levels of stress are a leading cause of attrition. Reduce stress by offering flexible work and retain the top talent you worked hard to recruit.
76% of employees claim they would be more loyal to their current employer if flexible work options were offered.
Infusing your company culture with more flexible work opportunities could be the key to improve company loyalty and retain more than half of your team.
52% of hiring managers at organizations where remote work is available reported fewer difficulties hiring within the past year.
Job seekers crave remote work opportunities. By building a company culture centered on flexibility, you can make it easier to close the deal with top applicants.
HOW PROFESSIONAL PURPOSE IMPROVES CULTURE
Employees who believe their organization has broader goals outside of profit margins are 27% more likely to stay at the company.
Having clear objectives and an actionable mission statement will inspire individuals and help retain them as employees.
Employees are less likely to leave for a 10% pay raise elsewhere if their organization has a purpose beyond profits.
Even if they’re offered a better salary at another company, employees are more likely to stay if they have professional purpose.
38% of U.S. employees want a job that aligns with their interests and passions.
A strong company culture is based on core values and a guiding mission statement, which will help attract more than a third of American job seekers who hope to live out their professional purpose.
THE IMPORTANCE OF PROFESSIONAL DEVELOPMENT
42% of millennial employees say learning and development opportunities are the most important factor when considering a job opportunity.
Job seekers want to know that they can grow at your company, and it’s the number one priority for almost half of millennials in the workforce.
Employees who report feeling a lack of support for their professional development are three times more likely to be looking for another job.
A culture that encourages and supports continued learning will engage your team and keep employees from becoming job seekers.
43% of workers say they left their company because of career path constraints.
Without giving your team members the chance to grow professionally, a little less than half are likely to look elsewhere, particularly for a company culture where learning and development is a priority.
Without professional development opportunities, 67% of millennials say they would leave their current position.
Creating a culture that’s supportive of young professionals’ development is important to retaining employees. For more than two-thirds of millennial employees, it’s a deal breaker.
94% of employees would stay in their current role longer if they felt the organization invested in their professional development.
Soft skills training and career advancement opportunities can help retain the vast majority of your workforce.
One-third of employees describe their performance reviews as unhelpful.
More accurately, the right kind of feedback matters. Monotonous annual performance reviews do not add to your company culture. In fact, it can be a deterrent for more than 30% of staff.
89% of HR leaders believe peer feedback and regular check-ins enhance their organizational culture.
Peer-to-peer feedback helps employees form positive relationships with their colleagues and the majority of HR reps notice the positive impact is has on the company.
78% of Gen Xers believe performance reviews are formalities that do not offer constructive opportunities for growth.
Feedback should be timely and genuine, with the ultimate goal being to help employees improve within the company. Phoning in feedback opportunities will put off well over half of experienced employees.
COMPANY CULTURE AND WORK-LIFE BALANCE
63% of employees say they would not consider a job if the company offered fewer than 15 days of PTO each year.
True work-life balance enables individuals to show up to the office as them best selves, which helps foster a positive work culture. Taking time off to recharge is the key to work-life balance, and almost two-thirds of employees expect solid vacation policies.
Employees who positively view their work-life balance are 10% more likely to stay in their current role.
Creating an organizational culture that encourages individuals to be their best selves both in and outside of the office will increase the likelihood of retaining employees.
57% of workers are more loyal, productive and take less time off when employers support their mental well-being.
Mental wellness is crucial to an individual's overall health and has a tremendous impact on performance in the office. Over half of employees believe their in-office presence would improve with their company's support of their mental health.
HOW EMPLOYEE RECOGNITION IMPROVES CULTURE
85% of HR leaders say employee recognition programs enhance their organizational culture.
Recognizing top performers creates a palpable change within your company culture, so much so that your HR team will take note.
27% of employees report leaving their jobs due to lack of recognition in the office.
Just as important as constructive feedback is praise for a job well done; it makes employees feel valued and appreciated within the company. More than a quarter of employees leave because they feel they aren’t recognized for their work.
79% of employees say they would be more loyal to their employers if they received more recognition.
Knowing they’ve done a great job and that you appreciate their efforts improves loyalty and increases your employees’ likelihood of sticking around.
It's to the benefit of your organization to create a strong company culture that will entice elite candidates and retain top talent for years to come. In case you're still not convinced, check out this article to learn more about the importance of organizational culture.