How Much is Your Culture Costing You?

by Jan 31, 2024

Creating a positive workplace culture isn’t just a nice-to-have; it’s a key player in the success of any business. It goes beyond token gestures like wellness days and promotions; it’s fundamentally about how you treat your people, the support you extend to your team, and the pervasive culture that permeates your workplace.

Now, let’s dive into the nitty-gritty. Have you ever pondered the true cost of your organization’s culture? Does it silently drain your resources, or does it actively contribute to the overall success of your company? 

 

The Price of Toxicity

The fallout from a toxic workplace is no small matter—it’s significant and widespread. Research paints a vivid picture, with a jaw-dropping 29% of employees opting to call in sick, all thanks to the toxicity lingering in their work environment.

Now, when stuck in a toxic and energy-sapping workplace, employees tend to disengage, get stressed out, and so much more. And, you guessed it, it’s not great news for the company.

Companies grappling with low employee engagement don’t just face a minor setback; they witness a whopping 33% decline in operating income. The effects of incivility aren’t light on the wallet either, ringing up a hefty $14,000 annual cost per affected employee. And here’s a nugget from another study: those extremely disengaged employees? They’re nearly 20% less productive compared to their engaged counterparts. Why? Less effort, more missed days.

Yikes! 

 

Turning Losses into Gains

The good news is that a strategic shift towards a positive workplace culture can actually turn the tide on these detrimental patterns. When your workplace is a hub of well-being, your people become engaged, productive, and yes, even more creative.

Here’s the good stuff: Highly engaged workplaces have a 41% lower absenteeism rate, and companies with a strong corporate culture report a remarkable fourfold increase in revenues

And if your employees feel heard, get ready for the magic—they become 4.6 times more likely to deliver their absolute best work. Oh, and let’s talk about the bottom line. A highly engaged organization? Brace yourself for an impressive 18% higher revenue per employee.

Also, a study from the University of Warwick supports the notion that happy employees aren’t just a feel-good concept—they’re 12% more productive

So, it’s not just a fluffy idea; it’s backed by numbers and real results.

 

The Culture Calculator

Now, going back to the first question of this article, have you ever wondered how much your culture is costing you? Luckily, we got you covered! Here’s our Culture Calculator—a free tool to measure the impact of your workplace culture on your organization’s success. 

 

calculator

 

Uncover the cost of your culture and discover actionable steps to improve it. Plus, as a bonus, access free resources along with your results to foster a healthier, more vibrant workplace.

If your results come up as positive, you’re on the right track! Make sure to sustain it to ensure your employees continue to thrive.

If the outcome is less than ideal, let us guide you in transforming setbacks into successes and unlocking your organization’s full potential. Discover how we can assist you and offer the solutions you need. Start making positive changes today!

 

Written by: Jennifer Areola

Many organizations ignore employee engagement because it feels elusive and expensive. Rather than getting caught up in the fear and doing nothing, download our eBook on employee engagement, and get started.

 

Catherine

About Catherine Mattice

Catherine Mattice, MA, SPHR, SHRM-SCP, is the founder/CEO of Civility Partners, an organizational development firm focused on helping organizations create respectful workplace cultures and specializing in turning around toxic cultures. Civility Partners’ clients range from Fortune 500’s to small businesses across many industries. Catherine is a TEDx speaker and an HR thought-leader who has appeared in such venues as USA Today, Bloomberg, CNN, NPR, and many other national news outlets as an expert. She’s an award-winning speaker, author and blogger, and has 50+ courses reaching global audiences on LinkedIn Learning. Catherine’s award-winning book, BACK OFF! Your Kick-Ass Guide to Ending Bullying at Work, was hailed by international leadership-guru, Ken Blanchard, as, “the most comprehensive and valuable handbook on the topic.” Her latest book is Navigating Toxic Work Environments For Dummies (Wiley).

Navigating the Era of “Quiet DEI”

Companies across industries are changing how they talk about Diversity, Equity, and Inclusion (DEI). Not too long ago, DEI was splashed across annual reports, websites, and conference stages. Now? The phrase itself has become a political lightning rod, and many...

3 Cultural Faux Pas You Might Not Realize You’re Making

Cultural missteps happen to everyone, even the most seasoned leaders and global brands.  Recently, American Eagle launched a campaign featuring actress Sydney Sweeney with the tagline “Sydney Sweeney Has Great Genes.” The pun on “jeans” was meant to be playful, but it...

HR, Are You Part of the Incivility Problem?

You already know what it feels like to be on the receiving end of workplace “drama.” Complaints about rudeness, tension between team members, and employees quietly disengaging are all part of the daily grind. You know it’s expensive. You know it’s draining for you to...

4 Strategies to Infiltrate Civility Into Your Global Organization

At its core, civility is the foundation of a thriving culture. It shapes how people communicate, lead, resolve tension, and show up, especially when challenges arise. Civility doesn’t look the same everywhere, however. What feels respectful in one culture might come...

Is It Okay To Bully AI?

According to a Pew Research Center study, 79% of Americans interact with artificial intelligence (AI) almost constantly or several times a day. Gartner predicts that by 2026, 80% of enterprises will be using generative AI in some form. That means we’re not just...

What Exactly is Civility vs. Incivility?

August is National Civility Month! Civility has recently climbed to the top of search trends, and with SHRM’s #CivilityAtWork initiative, the conversation is gaining real traction. But here’s the question: do you truly understand what civility means in the workplace?...

Is your workforce survey measuring the right things?

Many HR leaders rely on employee surveys to gauge the health of the workplace culture, but not all surveys are created equal. Whether you're using an engagement survey, a Great Place to Work® survey, or another tool, the question is: Are you gathering the right data?...

Conscious Unbossing: Why Gen Z Is Saying “No Thanks” to Leadership Roles

According to DDI’s Global Leadership Forecast 2025, 80% of HR professionals lack confidence in their leadership pipelines. CEOs are just as concerned, ranking “developing the next generation of leaders” among their top four worries. Gen Z is shaking things up. They’re...

The Workplace Culture Model Every Leader Needs to Know

We all want a workplace where people feel seen, heard, and valued. But building that kind of culture takes more than good intentions and inspirational posters. It demands a clear-eyed look at how people behave, how leaders lead, and how the organization itself either...

From Desperation to Determination: Reflecting on 16 Years of Growth

I just got an email from a spammer offering SEO help for my very old website — www.NoWorkplaceBullies.com. I hadn’t thought about that site in ages, so I typed in the link... and there it was. The original website I built the day I started my business — though it...