Amidst a hybrid work model and economic uncertainties, organisational culture has emerged as a critical factor in driving success, talent retention, and employee satisfaction. A recent study by Heidrick & Struggles reveals that culture-driven CEOs are elevating employee engagement and financial performance. More than 70% of CEOs now recognise the significant impact of culture on positive financial outcomes, a substantial increase from 2021's 26%.
The study, titled "Aligning Culture with the Bottom Line: Putting People First," highlights how CEOs are proactively engaging employees and focusing on ways to drive financial performance through culture alignment.
"An intentional focus on company culture cannot be separated from business strategy, the two need to be inextricably linked, and when aligned can lead to significant financial returns," said Rose Gailey, co-leader, culture & organisation practice at Heidrick & Struggles.
The survey shows that 1 in 3 CEOs ranked culture as the primary factor, and 71% recognised it as a top factor positively influencing financial performance, up by 44 percentage points since 2021.
The primary motivator for CEOs focusing on company culture is to increase employee engagement, with responses doubling from 26% in 2021 to 54% in 2023. Additionally, a strong culture has proven effective in enhancing employee retention, with 53% reporting significant improvements and 41% seeing some improvements across working models.
Heidrick & Struggles conducted the survey in Spring 2023, involving 500 global CEOs across diverse industries and countries, including Australia, Brazil, Canada, France, Germany, Hong Kong, Singapore, Spain, the United Kingdom, and the United States. The results indicate a clear trend of CEOs prioritising culture to drive employee engagement and create a more dynamic and successful organisation.