Recent research cites toxic culture as the number one reason for people quitting their jobs during the pandemic.1
It might seem easy to dismiss this as an HR problem, but cultural toxicity has impacts that reach far beyond HR and pose a huge risk to businesses. As employees disengage and churn from an organization, the quality of goods and services a company can provide decreases, which has a direct impact on the customer experience. That’s why when employees churn, you often see customers churn as well, which can not only hurt a business’s reputation, but also their ROI and recurring revenue.2,3
And this doesn’t even quantify the cost of losing a customer. While replacing an employee is bad enough with the cost being up to 2X their salary, the cost to replace a customer is even worse at 5X the cost of customer retention.4
So, while culture might seem like something that’s just nice to invest in, in reality it’s critical to businesses that want to survive.
For tips on how to build cultures that help prevent burnout and bring out the best in your people, check out our recent research.
Resources
- https://www.inc.com/jessica-stillman/great-resignation-mit-revelio-research.html#:~:text=Here%20are%20the%20top%20five,turnover%2C%22%20report%20the%20authors
- https://customerthink.com/what-causes-employee-turnover-how-does-todays-unprecedented-employee-churn-impact-customers-tomorrow
- https://www.gallup.com/workplace/285674/improve-employee-engagement-workplace.aspx#ite-285782
- https://www.outboundengine.com/blog/customer-retention-marketing-vs-customer-acquisition-marketing/#:~:text=Customer%20acquisition%20%26%20retention%20marketing%20stats,profits%20from%2025%2D95%25
