Top choice surpasses comp and benefits, workplace flexibility
As organizations struggle to hold onto talent, a new report has revealed that culture could be the key to retaining employees in the long run. A poll by Heidrick & Struggles among 500 chief executive officers from 10 markets revealed that culture is the top factor making a positive impact on retention.
According to the poll, 94% said culture "improved or significantly improved" their organization's retention rates. Other factors include affecting retention include:
- Compensation and benefits
- Flexibility in work rules or locations
- Being identified as high potential
- Quality of leaders at all levels
The findings come as employers across the world find it hard to retain talent.
In the US and Canada, 26% of employees said it is likely they will likely change jobs in the next 12 months. In Singapore, 92% of employees who recently changed jobs said they remain open to new opportunities.
Currently, 83% of the surveyed CEOs said they are working on their organizational culture. They cited the following goals:
- Increasing employee engagement
- Increasing innovation
- Improving diversity and inclusion
- Creating stronger alignment with organisational purpose
- Addressing ethics or compliance issues
Another 59% said culture is crucial to an organization's financial performance.
Other benefits of culture
The poll confirmed that culture can make these goals are within reach, as culture improved an organization's DE&I performance (74%), as well as financial performance (85%).
According to the report, a thriving culture can drive performance by:
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- Making collaboration more effective
- Improving the ability to attract and retain the best people
- Driving alignment for effective decision making
- Driving innovation
- Enabling an enhanced customer experience
"The data is clear: investing in your people is an investment worthwhile, creating a more dynamic organization better positioned to thrive in a rapidly evolving business environment," said Rose Gailey, Co-leader, Culture & Organization Practice at Heidrick & Struggles, in a statement.
Gailey stressed that company culture cannot be separated from business strategy, as they need to be "inextricably linked."
"CEOs looking to accelerate performance in today's volatile market can do so by ensuring culture remains at the top of their strategic agenda," she said.