Organization culture impacts employee interaction and work execution, influencing both performance and retention rates. Although 80 percent of companies state core values, only 16 percent of CEOs feel their culture aligns with those values. Culture encompasses the behavior, social norms, and reward systems within a workplace. Toxic cultures lead to burnout, disengagement, and can harm a company’s reputation as they affect employee attraction and retention. The key drivers of unhealthy cultures include leadership quality, social norms, and poor work design, necessitating accountability structures and monitoring of micro-cultures.
More than 80 percent of companies publish a set of core values-but only 16 percent of CEOs say their culture is where it needs to be, driving a wedge between our aspirations and everyday experience.
Toxic cultures are linked to greater instances of burnout, physical illness, psychological illness, and disengagement. This experience will then impact retention rates and attraction rates.
If culture dictates what gets rewarded, then it naturally influences how people collaborate, how work is executed, and how much innovation is tolerated.
The three most powerful predictors of an unhealthy culture are leadership, social norms, and poor work design.
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