Culture as Strategy: The Competitive Advantage of Employee Satisfaction

The voluntary turnover rate in 2025, meaning employees quitting or leaving by choice, was 13% thus, if you employ 100 people, thirteen, on average, are choosing to walk out the door each year. Eliminating employee turnover and the expense, in both time and money, of training new employees is immediate productivity. The primary question each company should ask itself is: How do we create a culture that is not only “hard to leave” but produces a desire to stay and grow?

Understanding Generational Differences in the Workplace

Top priorities reported by employees in 2025 were health insurance, retirement savings plans, holistic wellness, and flexible work arrangements. Other notable results were family care benefits and professional development. 

Of particular importance are generational differences. The Baby Boomers are the wealthiest generation in the history of our nation, yet Gen Z and Millennials are the next wave of leadership and productivity. This group deeply desires wellness, flexibility, and nontraditional perks which previous generations did not expect of their employers.

Testing Your Retention Strategy

So, do you have a culture that creates a healthy company and happy team? As a diagnostic, evaluate these three questions:

1. As a leader and a company are you invested in BOTH the professional development and personal wellness of your team members? Business leaders cannot care only about an employee’s “work life.” Leaders and companies who realize a healthy personal life leads to productive team members will have an advantage.

2. Is your company working to be nimble and, to some degree, flexible with Gen Z and Millennials? This generation is innovative, smart, and hard working. Yet they do not desire work to “look like” it has for past generations. Don’t fight this, embrace it. It is a big mistake to underestimate this next generation of workers or look down upon them for carving a different path.  

3. Does your benefit plan offer more than traditional benefits? Have you strategically evaluated how to make your benefits an “advantage” which enhances both the personal and professional lives of a team member?

A Shift in Career Priorities

We all applaud the uncommon success of the Baby Boomers, but we do so without realizing they also carved a different path. The Silent Generation, who came before (1925-1945), was uncommonly loyal, staying 30+yrs in one company on average and highly valued authority and structure. The Baby Boomers were more ambitious and career focused, climbing ladders aggressively.

Investing in the Next Generation of Workers

One tip for improving your company’s cultural health and retention is to orient your culture and benefits package towards the next generations. To say “this is how we have always done it” is hubris. The next generation of workers is already here and investing in them is a necessary advantage. 

To learn more, inquire about our succession planning seminar.