How much does a bad organizational culture cost? And how much does an authentic culture impact an organization’s long-term survival? Consider these staggering “hidden” costs of a bad working environment:
- 91% of staff are willing to leave a job within the first 30 days if they don’t like the organization’s culture.
- The total cost of replacing a staff member is estimated at three to four times their salary, with about 60% attributable to “soft costs” like training and onboarding.
- Disengaged staff cost U.S. organizations an estimated $1.9 trillion in lost productivity.
Such statistics suggest that emphasizing a good organizational environment — which includes genuine efforts to cultivate staff satisfaction — is not merely a soft, “nice-to-have” quality. It’s a hard business driver. A negative workplace atmosphere ultimately contributes to the sobering reality that only 25% of new organizations last 15 years or more.
