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A diverse business group standing in a heart formation, symbolizing unity, teamwork, and collaboration. It’s not news that a positive workplace culture drives talent retention and performance, yet many organizations still struggle to measure it with the same rigor they apply to sales or profit. I recently spoke with Kae Kronthaler-Williams, a global software marketing executive and author of the new book “Not Made For You,” who helped unpack why this needs to change—and how leaders can finally treat culture as the vital business metric it is. When I talk about culture, I often use the phrase that "everyone deserves to feel seen, heard and belong,” Kronthaler-Williams said. Sadly, that’s not a reality for most, especially women and historically marginalized groups. Kronthaler-Williams and I discussed the subtle, yet toxic, patterns that prove the workplace was not intentionally built for everyone. These are what I call noninclusive behaviors, or what some call microaggressions. They show up as women constantly being spoken over, or having their ideas appropriated—a phenomenon sometimes called "he-peating" or “bro-propriation.” As Kronthaler-Williams noted, these small incidents are so subtle that they are easy to ignore or dismiss, but their cumulative effect is a constant devaluation that impacts a woman’s career trajectory and ultimately, the company’s bottom line. The good news is that the cost of inaction can be quantified though through the loss of talented people. As Kronthaler-Williams points out, there is hope, largely because of two key factors: the labor shortage and the rising expectations of younger generations. Today’s employees, particularly younger workers, are pushing back on the long hours and impossible workloads that lead to burnout. They want to understand the larger purpose of their work, and they recognize that human capital must be part of the equation. Kronthaler-Williams calls this shift “human sustainability,” where a focus on retention and creating a thriving environment becomes as critical as performance and efficiency. MORE FOR YOU So how can we move beyond anecdotes and measure culture like a business outcome? Kronthaler-Williams offered tangible areas of focus: Set Retention Rate as a Key Metric This is an obvious, yet often overlooked, lagging indicator of culture. We know the main drivers of employee departures are burnout, a lack of feeling supported or heard, and limited career growth. Focusing on these is a direct way to address culture. Audit Workloads One measurement that can address burnout is auditing workloads. Are job descriptions and daily expectations realistic for a single person? Are your non-promotable tasks—often admin work that can be automated—disproportionately falling to women and marginalized employees? Audit workloads to ensure they match the job in a way that doesn’t cause burnout. Prioritize the ‘How’ in Performance If Corporate America could do one thing to advance their company culture, just as they would with sales or profits, it would be to balance performance reviews and talent management with a review of how the results were achieved. A top performer who hits their sales quota but leaves a trail of toxicity will ultimately cost the company more in lost talent than the sales they brought in. Instead, we need to reward behaviors that build a positive culture. The what (goal achievement, business metrics) are important and so is how people achieved their goals (behaviors, attributes). This includes recognizing individuals who: Lead with empathy. Are actively trying to learn a new skill. Are the “culture makers” in your departments. Support the Middle Manager Managers are a huge part of the employee experience, yet they are often stuck between senior leadership’s goals and the frontline employees. They need better support, tools and training to lead effectively. This includes training on giving constructive feedback in a professional and calm manner, and leading with empathy. They need coaching skills so they can help employees self-discover solutions, rather than solving all their problems. A reckoning is coming, and it will be driven by employees demanding a workplace that is actually made for them. Leaders who embrace this shift—and start measuring culture like the critical business outcome it is—will be the ones who retain talent and thrive in the new era of work. Editorial StandardsReprints & Permissions
