The link between corporate culture and profit

06th March 2020

Most executives believe that company culture is important. Many even believe better company culture equals better business performance. So why do so few executives understand how to act on those beliefs?


Most executives haven’t had the data to quantify how their investments in culture delivered a business return. Done poorly, culture risks becoming inauthentic rhetoric and creates misalignment between executives and employees.


Grant Thorton’s ‘Return on Culture: Proving the connection between culture and profit’’ report (add in report hyperlink here) provides hard proof and a clear demonstration of the link between corporate culture and financial results.  Whilst much of the analysis is focused around larger corporates, entrepreneurs need to be aware that if a healthy company culture is delivering tangible business results for large companies, it must surely do the same for smaller businesses.


The report (a study of 500 executives and 500 employees) is lengthy so, with the time-poor executive in mind, we have pulled out salient bullet points as food for thought:-

  • Companies with an extremely healthy culture are 1.5 times more likely to report higher revenue growth
  • Companies with an extremely healthy culture are 2.5 times more likely to report significant increases in stock prices
  • The average S&P 500 company would save USD156million annually in turnover alone if employees described their culture as healthy. 

Furthermore, the report highlights the areas where investments in culture pay off - and the areas where it doesn’t. There can often be a huge disconnect between what executives think is important and what employees think is important.  To help you optimise your culture, consider the following:-


  •  The nature of the work
  •  The people they work with


  •  The ability to work remotely
  • The physical working environment
  • 49% of employees would take a lower paying job for a better culture

The study also reveals a 30% gap between how engaged executives think their employees are, and how engaged they actually are. To close this gap, executives need to:

  • Identify key areas of culture investment
  • Gain insight in to employee priorities
  • Create and implement strategies for building, assessing and maintaining a healthy culture

In conclusion, the report proves beyond doubt that it is entirely possible to actually measure the return on investment in culture to a CEO’s Board and Shareholders. How much importance are you placing on a healthy culture in your business?


It's our number one goal, our culture drives our success and we’d love to hear your ideas.


If you're thinking about engaging super-smart offshore STEM talent but are worried about building an effective remote culture, download 'The 30 Essential Questions to Ask a Provider before you Outsource' resource. It will ensure you have the right questions to ask any potential outsourcing partner, including what they will do to help you build a culture that returns on your investment.