Company culture, once considered a soft, intangible concept, has become a measurable force in business performance. It shapes how employees interact, how leaders lead and how organizations attract and retain talent. In today’s labor market, where turnover is rising and job seekers are more discerning than ever, culture is no longer a background concern. It’s a central driver of business outcomes.

The Culture Disconnect

Recent data from The Harris Poll, commissioned by Express Employment Professionals, reveals a striking disconnect between how companies perceive their culture and how employees experience it. This gap matters because companies with high employee engagement achieve about 21% greater profitability, according to Gallup, while disengaged employees cost the global economy an estimated $8.8 trillion annually. Additionally, replacing an employee can cost between 50% and 200% of their annual salary, according to Salary.com, making culture a critical financial priority.

While 91% of hiring managers describe their company culture as positive, often using terms like respectful, welcoming and flexible, job seekers paint a different picture. Nearly three-quarters describe workplace culture in negative terms, with 42% calling it stressful and 40% calling it challenging.

This gap in perception has real consequences. Nearly 2 in 5 U.S. hiring managers expect turnover to increase in 2025, a notable jump from the previous year. Among those anticipating higher attrition, 24% cite more appealing cultures at other companies as a key reason. The financial impact is significant; the average cost of turnover is $36,723 annually, and for 1 in 5 companies, that figure exceeds $100,000.

Culture, in other words, is not just about employee satisfaction. It’s about business sustainability.

Who Should Adapt?

One of the most debated questions in the workplace today is: Who should adapt to whom? Should employees conform to the existing culture, or should the culture evolve to meet the needs of a changing workforce?

The answer, according to the data, is both.

More than half of employers (56%) believe it’s up to workers to adapt. But 54% of job seekers believe the culture itself must evolve. This tension reflects a broader shift in workplace expectations, where employees are no longer willing to mold themselves to fit traditional policies.

Encouragingly, many companies are responding. A strong majority of hiring managers (84%) say their organization is open to changing its culture to attract more qualified candidates, retain current employees and boost morale. This willingness to evolve signals a new era where culture is not fixed but flexible.

Learning as the Engine of Culture

Culture is not built in a day. It’s built every day through conversations, behaviors and shared experiences. And the most effective way to shape those experiences is through intentional learning and development (L&D).

Organizations that have seen cultural improvement over the past year often point to specific actions: hosting more events, recognizing employee contributions, celebrating milestones and placing greater emphasis on mental health. This focus is essential because 35% of workers say their job negatively affects their mental health, according to SHRM, and employees experiencing burnout are nearly three times more likely to be job hunting. Companies that invest in mental health programs not only improve well-being but also see measurable gains in retention and productivity.

For example, 53% of hiring managers who report cultural improvement credit hosting more frequent events, both in-person and remote. Another 53% cite increased employee recognition. Around 40% highlight milestone celebrations, and 38% point to mental health support as key drivers of positive change.

Job seekers echo these sentiments. Among those who feel their company’s culture has improved, many point to recognition, milestone celebrations and opportunities for connection as meaningful contributors.

These findings underscore a powerful truth: Culture is teachable.

Building a Culture That Works

To build a culture that supports both people and performance, organizations must treat it as a strategic learning priority. This means designing training programs that do more than transfer knowledge. They must shape mindsets, reinforce values and foster connection.

Start with Purposeful Onboarding
Onboarding should go beyond policies and procedures. Introduce the company’s mission, values and cultural expectations to new hires through interactive sessions, storytelling from leaders and peer coaching programs. For example, some organizations use “culture ambassadors” to mentor new employees during their first 90 days.

Embed Culture in Leadership Development
Leaders set the tone for culture. Offer training that equips managers with skills in empathy, inclusive leadership and effective communication. Role-playing scenarios and coaching sessions can help leaders model desired behaviors consistently.

Create Recognition Rituals
Recognition can be taught and implemented system wide. Train managers to give specific, timely feedback and celebrate wins in ways that align with company values. For instance, a monthly “values in action” award can spotlight employees who exemplify cultural principles.

Prioritize Well-Being and Psychological Safety
Mental health should be integrated into learning programs. Workshops on resilience, stress management and work-life balance not only support individuals but also signal that the organization values its people. Encourage open dialogue about mental health through manager toolkits and employee resource groups.

Foster Connection Through Learning
Culture thrives on relationships. Incorporate peer mentoring, cross-functional projects and hybrid learning events that encourage collaboration. Virtual coffee chats or “lunch and learn” sessions can help remote and in-office employees feel connected.

Measuring Cultural Success
Building a strong culture is only half the challenge — measuring its impact ensures it lasts. Organizations should use a mix of data and feedback. Engagement surveys, pulse checks and employee net promoter scores (eNPS) reveal how employees feel, while retention and turnover rates show whether those feelings translate into loyalty. Stay interviews and focus groups add context, helping leaders understand what’s working and what needs attention.

Learning leaders should also track participation in culture-focused programs and look for behavior changes. Are managers applying inclusive practices? Are employees collaborating more? External signals like employer brand ratings and candidate feedback can validate progress. By combining these insights into regular reviews, organizations create a feedback loop that keeps culture aligned with business goals and employee expectations.

The Culture Advantage

Culture is not a slogan or a quarterly report. It’s the lived experience of every employee, every day. And when that experience is positive, it becomes a competitive advantage. In fact, organizations with strong, adaptive cultures deliver shareholder returns 60% higher than their peers, according to McKinsey and are significantly more resilient during periods of change.

For business leaders and HR professionals, the message is clear: Culture is not just a reflection of who you are, it’s a predictor of where you’re going. And the most powerful way to shape it is through learning.

By investing in the right training initiatives, organizations can close the perception gap, reduce costly turnover and build workplaces where people want to stay — and succeed.