Here’s How Positive Work Culture Affects Your Company Profits


The link between firm profitability and workplace culture is undeniably apparent. Even though a combination of various factors results in improved earnings, the work environment might occasionally be enough to bring a brand down to its knees. A poisonous work environment not only causes disgruntled employees to leave the company but also gives the organization a bad reputation in the community, which drives away customers. According to SHRM, nearly 49% of employees in the United States have considered quitting their jobs due to a hostile work environment.

Surprisingly, the detrimental consequences of toxic work culture do not only affect small firms. According to FastCompany, even industry titans sometimes fail to recognize the necessity of investing in employee satisfaction. So, why do some companies, like General Electronics, enjoy the highest retention rates while others, like Salesforce, struggle? A positive work atmosphere and motivated staff are the answer. Eventually, the purpose of this article is to demonstrate how pleasant work culture can boost your company’s earnings.

Effects of a toxic work environment

Firstly, let us take a deeper look into what a toxic work environment can cost you as a business owner or manager:

– As per Forbes, a negative work environment can result in serious health issues, anxiety, and drug abuse.
Harvard Business Review reveals that companies whose employees are under too much work pressure experience nearly 50% more healthcare costs.
– Disgruntled employees may leave the company leading to high turnover costs as per HUFFPOST.
– According to Inc, the fifth-largest cause of death in the United States is a stressful workplace.
– Unhappy employees lead to a negative reputation within the industry.
– Low retention of top talent.

And the list of disadvantages is inexhaustive. In simpler words, you should not neglect the concerns and worries of your employees in the name of saving money because, in the end, you lose more than you gain from such a saving.

How to attain a positive work culture

Now that you understand the impacts of negative work culture, let us see how you can encourage positivity in your company:

– Start with the HR policies. That is, you need to let go of the rigidness and incorporate a positive work culture within your company policies.
– Provide encouraging employee benefits like health insurance and tuition support (as in the case of General Electronics).
– Appreciate your workforces’ hard work through enticing bonuses and financial rewards.
– Show empathy and understand an employee’s grievances and support them. This will take the stress off their minds while working.
– Take care of their personal special days such as birthdays. A person in the HR department should be assigned the task of attaining workers’ birthdates, hobbies, and likes. One way to do that is to use Nuwber. You can use it to plan surprise birthday parties, corporate parties, etc.
– Offer sufficient days off and allow work from home for those who have conveyance or other issues.
– Encourage a healthier lifestyle and positive relationship building amongst employees to reduce grudges.
– Get rid of the bossy management style.

How positive culture increases profitability

Now, you may ask, “Oh, why am I spending so much on an employee?” Here are your answers:

Reduced employee turnover
Once you have a satisfied and happy workforce, the chances that they would want to leave your company are very slim. If that is the case, you will not have to go through the trouble of hiring and training new employees to replace the old ones. In fact, more senior employees will become experts in their work and ultimately increase their productivity.

Increased employee loyalty
When a company shows compassion towards an employee and gives them a flexible work environment, they develop an emotional understanding and attachment with the company. Hence, the employee will not only think of their well-being but will also consider what is best for the company. They will eventually be motivated to work harder, which will benefit the company in the end.

Positive publicity
A satisfied workforce becomes the company’s greatest advocate. If a disgruntled employee can demoralize the company, then a satisfied worker can uplift it. Once the community realizes that a particular company values its employees, they are motivated to trust the company and purchase their products.

Attraction and retention of the best talent
Apart from increased publicity and lower turnover, a positive work culture will also attract new talent. When other groomed professionals learn about your company’s amazing working environment through your employees, they will want to join you. Resultantly, your workforce will become more diversified and talented. Thie new talent’s work will then increase your revenue.

Increased productivity
All of the above will ultimately increase the whole team’s productivity. Once you start taking care of the team, they become happier and less stressed. A stress-free workforce begins to enjoy the work it does as it begins to see a meaning in it far beyond any monetary reward. Hence, goal congruence is achieved. As a result, a motivated and happy workforce boosts productivity and brings in more dollars.


All in all, a company’s work culture can either make it or break it. From the preceding explanation, it should be clear that investing in your workers and cultivating a great work culture will result in you earning more than you invest. If you follow the above suggestions to the fullest, you will see results in no time. Those that ignore their employees’ contentment, on the other hand, will bear negative outcomes.