In today’s job market, attracting and retaining top talent goes far beyond offering competitive salaries and benefits. A company’s workplace culture plays a crucial role in drawing in skilled candidates who align with the organization’s values and long-term goals. Human resources professionals have a unique opportunity—and responsibility—to cultivate an environment that not only supports employees but also acts as a magnet for the best and brightest talent.

A study reported in the MIT Sloan Management Review highlights that corporate culture is the leading predictor of employee attrition. According to the study, toxic workplace cultures—marked by failures in diversity, equity, and inclusion (DEI), employee disrespect, and unethical behavior—are the main culprits driving employees to leave. In fact, a toxic culture is ten times more likely to contribute to attrition than unsatisfactory compensation.

The importance of a strong, positive workplace culture is frequently underscored during job interviews. It’s common for candidates to ask about the culture, and their perception of it often becomes a deciding factor in whether they choose to accept an offer. But what exactly defines a strong workplace culture, and how can organizations leverage it to both attract and retain top talent?

Workplace Audits and Assessments

Workplace audits and assessments provide valuable insight into employee experiences and can serve as a tool for identifying potential cultural gaps. These audits are typically triggered by signs of dissatisfaction—whether it’s generalized complaints about a “toxic” work environment, low employee morale, or a noticeable pattern of resignations. However, audits can also be proactive; for example, employers may choose to conduct audits after noticing a dip in employee engagement or receiving feedback in an exit interview.

During a workplace audit, a neutral third-party auditor collaborates with the employer to identify key areas of concern and engages directly with employees to understand their perspectives. The auditor can then provide actionable recommendations based on employee feedback. Audits allow employers not only to get a clear, accurate view of the underlying issues but also to demonstrate a commitment to employee well-being. When employees feel “heard” through this process, it fosters a sense of respect, increases job satisfaction, and strengthens overall workplace culture.

Inclusive Policies

Inclusive workplace policies are fundamental to fostering employee satisfaction, attraction, and retention. Proactive policies related to equity, diversity, and inclusion (EDI), accommodation, and accessibility play a pivotal role in shaping a positive work environment.

These policies should cover all stages of employment—including recruitment, onboarding, and professional development—to create an environment where everyone feels welcome and valued. From the outset, inclusive recruitment policies and procedures ensure that diverse talent is attracted to the organization, while equitable hiring practices guarantee that all candidates, regardless of background, have an equal opportunity. Research shows that organizations committed to EDI initiatives are perceived as industry leaders, attracting high-caliber talent who thrive in diverse and innovative workplaces.

Implementing Cultural Change

While audits and policies provide the framework for cultivating a strong workplace culture, true success depends on the organization’s commitment to “walking the walk.” In other words, these strategies must be consistently implemented and reinforced. Examples of effective practices include:

• Creating Workplace Affinity Groups: Support employee resource groups for various communities (e.g., parents, LGBTQ2+ employees, racialized employees) to promote connection and mutual support.

• Training for a Positive Workplace: Offering training on topics such as Respect in the Workplace, Personal Accountability, Accommodation Practices, and EDI ensures employees understand and embody company values.

• Proactive Employee Engagement: Hold regular touchpoints with employees to address concerns before they escalate into larger issues. This demonstrates a proactive, employee-centered approach.

• Addressing Workplace Concerns: Investigate complaints thoroughly and take swift action when necessary to resolve issues and maintain a healthy work environment.

Building a positive, inclusive, and engaging workplace culture isn’t just a “nice to have;” it’s a strategic imperative that can make or break an organization’s ability to attract and retain top talent. By conducting audits, creating inclusive policies, and actively implementing cultural change, HR professionals can play a critical role in shaping an environment that not only meets employee needs but also propels the organization toward long-term success.

Written by: Samantha Sutherland, Workplace Lawyer and Investigator, Turnpenney Milne LLP

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