When you hear words like "collaboration" or "integrity" tossed around in company meetings, do they feel genuine or like corporate jargon? For many professionals, workplace culture often seems like an abstract concept rather than something tangible or actionable.

However, for businesses navigating today’s competitive hiring and retention landscape, culture is far more than a buzzword. It’s a critical retention strategy.

With conservative hiring plans becoming the norm and professionals evaluating employers more holistically, businesses that proactively invest in and measure culture have a distinct advantage. This blog explores why company culture is a measurable driver of retention and how your organization can take actionable steps to enhance and track it.

The Business Case for Culture

Company culture encompasses the values, beliefs, and behaviors that define how employees interact, collaborate, and achieve goals. While the concept may feel intangible, its impact on retention, employee satisfaction, and overall business success is concrete.

Our recent report, The State of Professional Services, found that 78% of business leaders rated culture as critical to their organization's success, impacting productivity, engagement, and even profitability. Yet, only 53% of companies track employee satisfaction, creating a disconnect between leadership intentions and actionable outcomes.

With 76% of companies limiting hiring to essential gaps, retaining top talent is essential. When employees feel aligned with their organization’s values and experience a positive workplace culture, they are far more likely to stay long-term.

Why Culture Is More Important Than Ever

Conservative hiring plans have put the pressure on businesses to maximize the potential of their existing teams. Here's why investing in culture is critical under these circumstances:

  • Retention Is Cheaper Than Recruitment
    The cost of replacing a single employee can reach up to two times their annual salary. Retaining your current workforce through cultural initiatives is both a time-saving and cost-effective strategy.

  • Employee Loyalty Drives Productivity
    Engaged employees are over 20% more productive than disengaged ones. A strong cultural fit amplifies job satisfaction and work output.

  • Talent Attraction Hinges on Reputation
    With platforms like Glassdoor and LinkedIn influencing how job seekers assess workplaces, your company's culture is on display for the world to see. Businesses with a strong, values-driven culture naturally attract more applications.

The Disconnect Between Culture and Measurement

Although most companies claim to value culture, many fail to track whether their efforts are paying off. We learned that 87% of surveyed businesses believe they’ve successfully implemented a defined culture, yet less than half regularly measure employee well-being or satisfaction. Without data, it’s impossible to know whether your cultural efforts are truly resonating with your team.

Tracking culture doesn’t just involve annual surveys. It requires continuous feedback loops, meaningful one-on-one conversations, and clear KPIs tied to employee engagement. Companies that analyze this data can quickly identify areas for improvement and adjust accordingly.

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Building a Measurable Culture Employees Love

Creating and refining your company culture is not a one-time exercise. It’s an ongoing process that demands intentionality and effort. Here are six steps to take your culture from abstract to actionable:

1. Define Core Values That Reflect Your Business
The foundation starts here. Your core values should go beyond generic terms like "integrity" or "teamwork." Be specific about what makes your company unique and tie those values directly to business outcomes. For example, "collaboration" could be expanded to "collaboration to deliver client-first solutions."

2. Get Employee Input from the Start
Employees are the backbone of your culture. To make lasting changes, involve them in the process. Conduct anonymous surveys, schedule open feedback sessions, and review performance data to identify what’s working and what’s not.

3. Establish Culture Metrics
Don’t just talk about culture; measure it. Focus on tangible KPIs like Employee Net Promoter Score (eNPS), turnover rate and engagement levels.  

4. AlignLeadership Behavior
If leadership doesn’t embody company values, employees won’t either. Ensure management teams are leading by example and actively promoting the cultural DNA you wish to cultivate. Leaders should also be visible advocates of professional growth and employee well-being.

5. Foster a Community
Culture thrives when employees feel like they belong. Encourage cross-departmental collaboration, celebrate team achievements, and facilitate both formal and informal interactions to strengthen workplace connections.

Pro Tip: Remote or hybrid teams? Consider hosting virtual coffee chats or recognition programs to keep distributed teams engaged.

6. Celebrate Wins and Act on Feedback
When employees feel heard and see changes implemented based on their input, it builds trust. Regularly acknowledge efforts that align with company values and use team feedback to refine cultural initiatives.

The Case for Continuous Culture Evolution

Now more than ever, professional services firms are realizing the necessity of weaving culture into larger strategic goals. Companies with strong cultures benefit from improved retention, increased engagement, and satisfied employees advocating for their workplace externally.

Think of your company culture as a living, breathing entity. Just as businesses consistently refine operations and adjust for market shifts, culture too must be revisited regularly. Best practices include:

  • Hosting quarterly culture reviews
  • Regularly updating training materials to reflect company values
  • Expanding leadership coaching to improve empathy and communication skills

Making Culture Your Competitive Advantage

Culture isn’t just about office perks or inspirational posters in the breakroom. It’s a strategy grounded in boosting retention, satisfaction, and engagement within your team.

Ask yourself:

  • Does our company culture align with what employees actually need?
  • Are we actively listening and acting on employee feedback?
  • What measures are in place to ensure culture is evolving alongside our business goals?

Investing in your workplace culture today gives you a readily available retention tool tomorrow. Remember, it’s not about being perfect; it’s about being intentional and willing to adapt.

For a deeper analysis of the challenges facing professional services firms (and actionable strategies for overcoming them), download our State of Professional Services report. Whether you’re an agency owner, a project manager, or an operations lead, this comprehensive report will provide valuable insights to help you navigate 2025 (and beyond) with confidence.

Download the report