Across the Globe, Positive Organizational Culture Generates Financially Beneficial Outcomes, New SHRM Research Finds
Globally, workers in positive organizational cultures are almost 4 times more likely to stay with their current employer
ALEXANDRIA, Va – Today, SHRM, the trusted authority on all things work, released its latest report, The State of Global Workplace Culture in 2024. This eye-opening analysis dives into workplace cultures around the world, uncovering what makes a positive culture thrive and revealing how these environments boost retention and drive business success.
Nearly 20,000 workers were surveyed from 19 different countries. Globally, workplace cultures stand out as positive. When asked to rate their organization’s culture, 56% of workers responded that their culture was good or excellent, and 26% rated it as slightly good. On the opposite end, 10% responded with a slightly poor assessment, and 8% described their workplace culture as poor or terrible.
Among employees rating their organization’s culture as good or excellent, just 15% say they are actively (or will soon start) looking for a new job. This increases to 57% among those employees who rate their culture as poor or terrible.
This new research has identified five fundamental elements that contribute to favorable workplace cultures across the globe, leading to greater employee engagement, loyalty, and retention:
- Honest and Unbiased Management
- Civil Behavior
- Meaningful Work and Opportunities
- Open Communication
- Empathy
“Companies that prioritize culture see tangible returns—retaining top talent, improving performance, and building a resilient foundation for long-term success,” shared Alex Alonso, Chief Data & Analytics Officer, SHRM. “We know the essential building blocks for a thriving workplace culture—now is the time to bring them together to create a culture that empowers our people and drives sustainable success. The foundation is set; now we must construct something meaningful and lasting."
Additional key findings include:
- Ratings of organizational culture vary by country. For example, employees in India, the UAE, and Egypt give more positive ratings of their organizational culture, while employees in Japan, France, and South Korea report more negative ratings.
- Globally, workers who choose to remain in toxic work cultures tend to do so out of fear, as many are choosing to stay for job security, and due to fear of leaving during a possible recession.
- Employee burnout affects more than a quarter of employees globally (30%) and is more prevalent in younger workers and ones who are establishing themselves within an organization (e.g., those who have worked at their company for up to five years).
- Burnout is a major factor in employee turnover, as half of burned-out employees are actively, or soon will be, searching for a new job.
- This is over three times greater than the number of “engaged” employees who show little sign of burnout.
- In addition to inadequate pay, workers’ top reasons for leaving among those in poor or terrible workplace cultures line up with attributes of an unfavorable workplace culture, including poor management, unfair treatment, insufficient regard for employee well-being, and lack of empathetic leadership.
View the full report here: https://www.shrm.org/topics-tools/research/the-state-of-global-workplace-culture-in-2024
Methodology
A total sample of 17,234 employed adults from 19 countries was recruited using a third-party online panel between February and March 2024. The sample was balanced for age and gender in each of the countries. Additionally, a weight was applied to equalize the representation of each country in the total results. Respondents in some countries are more likely to give answers that cast themselves in a positive light (called social desirability). A social desirability measure was included and used to adjust participants’ responses to a global average. Respondents in some countries are more likely to acquiesce (i.e., always agree with survey statements no matter what). Again, a weight was applied to minimize this effect by measuring this tendency and using it to adjust respondents’ responses to a global average.