November 26, 2025
Picture two very different workplaces.
In the first, turnover is almost predictable. New joiners arrive full of energy, only to disappear a few months later. Relationships are temporary, and the constant turnover creates a quiet instability you can feel.
Now imagine the second. Here, people stay long enough to build trust, learn from one another, and grow in their roles and aspirations. Stability isn’t forced—it’s created through connection.
The contrast between these two spaces is stark, yet the reason behind it is often overlooked. Retention isn’t just a workforce metric or a productivity concern; it is a cultural outcome. Today, culture is one of the strongest—and most strategic—investments a company can make.
The Rising Cost of Disengagement
The case for culture as a retention strategy begins with a simple truth: losing people is expensive, but often preventable. Understanding the true cost of turnover helps explain why culture has become such a critical retention strategy. Employers are bracing for higher churn, with Forbes (2024) reporting that 33% of hiring managers expect turnover to rise, costing organizations around $36,295 per year on average. Moreover, McKinsey (2024) estimates that disengaged employees cost a median S&P 500 company between $228 million and $355 million annually.
Beyond the financial toll, McKinsey’s 2023 State of Organizations study revealed that one in five employees feels a lack of community at work, highlighting a growing desire for deeper connection and belonging. In an era shaped by hybrid and remote models, workers want purpose, clarity, and a sense of how they fit into a company’s long-term plans. When those needs go unmet, disengagement grows while retention and productivity fall.
An inclusive, connected culture is no longer optional—it is essential to performance, innovation, and protecting teams from burnout.
Building Culture Through Organizational Design
Designing a culture where people can genuinely thrive requires deliberate leadership and a clear organizational structure. Fisher’s Leadership Development and Coaching solutions equip managers to support, communicate, and engage their teams effectively. Complementing this, our Culture and Engagement Strategy services—ranging from values alignment to engagement diagnostics—create the sense of connection and belonging employees are seeking. And through our Employee Engagement and Retention tools, including continuous feedback, recognition, and career development planning, we help ensure people feel valued and invested in. Together, these pillars turn culture from an abstract concept into a practical, scalable retention strategy.
Because when culture works, retention becomes a natural outcome—not a constant battle.
References:
Forbes. (2024, August 5). How your company culture impacts employee retention. https://www.forbes.com/sites/allbusiness/2024/08/05/how-your-company-culture-impacts-employee-retention/
McKinsey & Company. (2023). The state of organizations 2023. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-state-of-organizations-2023
McKinsey & Company. (2024). Five bold moves to quickly transform your organization’s culture. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/five-bold-moves-to-quickly-transform-your-organizations-culture
