Why Employers Should Prioritize Company Culture 

The Society for Human Resource Management (SHRM) defines company culture as the shared values, attitudes, and practices that characterize an organization and influence how things are done. Essentially, it’s the “how” of an organization, encompassing both the written and unwritten rules that guide employee behavior. 

Culture is evident in the way employees interact, how leaders communicate, and the overall experience people have when they walk through your doors. In 2025, culture goes beyond creating a positive work environment; it is a critical component of how successful companies operate, grow, and retain talent. 

From hiring and onboarding to performance reviews and daily interactions, culture impacts every aspect of your business. Companies cannot afford to treat culture as a background element. It is a competitive advantage, a retention tool, and a blueprint for long-term success.

What Makes a Strong Company Culture? 

A strong culture is more than a mission statement on the wall. It is built on consistency, clarity, and trust. Employees should understand the values that guide decision-making and feel like those values are reflected in the way the company operates. 

Key traits of a healthy culture include: 

  • Clear communication and transparency from leadership 
  • Respect, trust, and psychological safety 
  • Opportunities for growth and recognition 
  • Inclusive practices that make everyone feel welcome 
  • A sense of purpose that connects work to a larger mission 

When these elements are in place, employees are more likely to feel engaged and motivated. When employees feel their work is meaningful, they are 2.7 times more likely to stay with a company.  And when people feel good about where they work, they are more productive and more likely to stick around.

Culture Drives Retention and Performance 

Employees are not just looking for a paycheck; they are seeking purpose, connection, and alignment with their work. A significant majority, 92%, of employees across all generations say that company culture impacts their decision to stay with an employer. A thriving culture fosters engagement and reduces turnover, which is critical as hiring costs and labor shortages continue to rise. 

A Strong Culture Builds Resilience

In the face of economic uncertainty and ongoing workplace disruption, a positive culture provides stability. Teams that trust their leadership and feel supported are more adaptable during times of change. Companies with a clear identity and shared values are better equipped to handle challenges without losing momentum. 

Culture Should Be a Core Part of Your HR Strategy 

The most successful organizations recognize that culture is integral to strategy. It forms the foundation of your HR practices and drives long-term business success. 

Workplace culture influences every aspect of the employee lifecycle, from onboarding and performance management to benefits and communication. An effective HR strategy intentionally weaves culture into its policies, programs, and people practices. This involves establishing clear values, investing in leadership development, offering competitive benefits, and promoting inclusion. Companies that align HR decisions with cultural goals are more likely to build loyal, high-performing teams. 

Culture is something you actively design and maintain throughout the employee’s journey. This includes: 

  • Defining core values and integrating them into company policies 
  • Creating structured onboarding processes that reinforce expectations 
  • Developing leadership that models and supports the culture 
  • Offering benefits and perks that align with employee needs 
  • Implementing performance management systems that reward the right behaviors 

When culture and HR strategy are misaligned, your business will feel the disconnect. High turnover, lack of engagement, and poor team cohesion often indicate that culture is not being supported at the operational level. 

How PEOs Support Company Culture 

Partnering with a professional employer organization (PEO) like GMS provides businesses with the tools and support necessary to cultivate a strong, people-first culture. A PEO helps shape culture in several key ways: 

  • HR expertise: GMS helps you build and maintain policies that reflect your values while staying compliant with ever-changing employment laws. 
  • Employee engagement: From performance review systems to recognition programs, GMS offers tools that create consistent and meaningful employee experiences. 
  • Leadership support: We provide guidance and resources to help managers lead with clarity and consistency—two essential ingredients for a healthy culture. 
  • Comprehensive benefits: Offering competitive benefits shows your team that you care. Through GMS, small and midsize businesses can access Fortune 500-level benefits that support employee well-being and satisfaction. 
  • Scalable HR infrastructure: As your company grows, so do the cultural challenges. A PEO helps you maintain alignment across departments, locations, and leadership levels. 

Your culture is what employees say about your company when you are not in the room, and job seekers are listening. A report from Randstad USA shows that 77% of workers consider a company’s culture before applying. Culture is now a critical part of your employer brand, influencing who wants to work for you and who stays once they are hired.

 

At GMS, we understand that culture is not created overnight; it is built through intentional HR strategies and strong leadership. Our team collaborates closely with you to develop effective policies, enhance communication, enhance your benefits offerings, and foster a workplace that aligns with your mission and values. When culture is aligned with business goals, your team is more engaged, your brand is stronger, and your business is better positioned to succeed.