Why Company Culture Is the New Business Currency for Employee Engagement, Retention, Growth

A diverse group of colleagues casually meeting and smiling in a modern office lounge with large windows. The relaxed setting emphasizes openness, inclusivity, and a collaborative workplace culture.

Introduction

Company culture is more than a set of perks or an inspirational slogan; it’s a strategic asset that drives business outcomes. As companies battle for talent and market relevance, culture has emerged as a true “currency” that fuels performance, innovation, and retention.

In this blog, we’ll explore why investing in culture pays dividends, examine the costs of neglect, and outline actionable steps to create a thriving, high-performance workplace.

Whether you’re a startup founder, HR leader, or corporate executive, you’ll walk away with insights on how to cultivate a high-performing workplace culture that drives both people and profits.

The Current State of Workplace Culture

Historically, workplace culture was rigid and hierarchical, focused on control and short-term profit. Today, the landscape is shifting toward more employee-centric, transparent, and purpose-driven environments.

Hybrid and remote work, rising employee expectations, and a competitive talent market have pushed culture to the forefront of business strategy. According to Deloitte, 94% of executives and 88% of employees believe a distinct workplace culture is crucial to business success (Deloitte, 2023).

The High Cost of Ignoring Company Culture

Weak or toxic cultures lead to disengagement, higher turnover, and stifled innovation. Employees in negative environments feel undervalued and are less likely to take initiative.

Replacing an employee can cost up to two times their annual salary, factoring in recruitment, onboarding, and lost productivity (Gallup, 2022). Moreover, companies with poor cultures see 57% of employees actively job hunting, compared to just 15% at companies with strong cultures (SHRM, 2024).

The Power of Culture: Lessons from NYC-based Companies

Paul Weiss, a Midtown Manhattan law firm, had early-career lawyers paired with mentors and supported through small-group trainings, informal coaching, office hours, and NYC cultural outings like Yankees games and MoMA receptions. These touchpoints support engagement and superior retention. (Vault, 2025)

At Etsy, their approach to culture is centered on connection, collaboration, and flexibility. In their internal post Evolving the Way We Work, Etsy explains how they intentionally create opportunities for in-person and virtual interactions to build a sense of belonging. Their Brooklyn headquarters, along with hubs around the world, are designed to bring people together in a way that fosters creativity and inclusion.

At Bloomberg, the company’s Fostering a Culture of Constant Innovation feature highlights how their global offices, including New York City, create environments that encourage experimentation, learning, and cross-team collaboration. This innovation-driven culture helps Bloomberg stay competitive and adapt quickly in the fast-moving financial and tech sectors.

At Warby Parker, their Life at Warby page details how they integrate fun, recognition, and purpose into daily work. Practices like “virtual shoutouts,” monthly cultural awards, and celebrating work anniversaries reinforce a strong sense of community. Their mission-driven approach, including the “Buy a Pair, Give a Pair” program, ensures that employees feel part of something larger, which in turn strengthens engagement and loyalty.

Why Culture Is the New Business Currency

A strong workplace culture fuels intrinsic motivation, encouraging employees to excel without micromanagement. When people feel valued, safe, and connected to a larger purpose, they deliver higher-quality work and innovate more freely.

Key benefits of investing in culture:

• Higher retention: Only 15% of employees in strong cultures are looking for new jobs, vs. 57% in poor cultures (SHRM, 2024).

• Increased revenue: Companies that prioritize culture see up to a 33% increase in revenue (Flair HR, 2024).

• Enhanced employer brand: Organizations with strong cultures attract higher-quality leaders and achieve a 100%+ increase in earnings per share over five years (Flair HR, 2024).

How to Build a Culture-Driven Business Strategy

1️⃣ Align culture with business goals

• Conduct listening tours to hear employees' perspectives on values and purpose.

• Ask: What motivates you most? Where do you see our values in action?

• Identify gaps between stated and lived values.

2️⃣ Reinforce values consistently

• Integrate values into onboarding, performance reviews, and day-to-day operations.

• Share stories of employees or teams exemplifying core values.

• Create internal communications that celebrate cultural wins.

3️⃣ Track key culture metrics

• Employee Net Promoter Score (eNPS): Measures likelihood of recommending your company.

• Turnover & retention rates: Gauge organizational stability.

• Employee engagement scores: Assess connection to mission and team.

Learn more about each metric type here: eNPS | Turnover & retention rates | employee engagement scores

Use tools like Culture Amp, Lattice, or Leapsome for consistent measurement and feedback loops.

4️⃣ Empower managers to lead with culture

• Train leaders in empathy, active listening, and value reinforcement.

• Encourage open-door feedback and psychological safety.

5️⃣ Celebrate and reward cultural champions

• Recognize employees who embody your culture through peer nominations, public shoutouts, or experiential rewards.

• ANI’s new employee appreciation and recognition tool makes it easy to highlight these contributions and strengthen cultural alignment.

ANI in Action: Connecting Culture & Locality

• Smart Spotlights: Use ANI to highlight employees living out your values with authentic nominations and localized experiences.

• City‑specific rewards: Give gift passes to a museum, Broadway show, or Yankees game, making recognition meaningful and location-relevant.

• Team Building: Encourage managers to use the platform’s community-building to connect with their direct reports in culturally inclusive environments.

• Analytics & insights: ANI dashboards show when cultural recognition is trending, enabling real-time adjustments as your strategy evolves.

Conclusion

Company culture isn’t just a buzzword; it’s the foundation of sustainable growth. When you invest in culture, you’re investing in people, productivity, and profitability.

A culture-first approach helps you:

✅ Improve employee engagement

✅ Strengthen your employer brand

✅ Drive long-term business performance

Neglecting culture is costly, not just in morale, but in missed innovation and stagnant growth.

Is your organization treating culture as its most important currency?

Join the conversation: Share your experience or insights in the comments below. Subscribe to our newsletter for more resources on employee engagement and leadership, or connect with us to learn how ANI helps organizations build cultures that drive results.