Everyone wants to work in an environment where they feel engaged, satisfied and productive, but beyond the emotional benefits of a positive office culture, the financial benefits are huge. Likewise, as a poor office culture negatively impacts your teams, it also negatively impacts your finances.

One of the biggest evidences of a poor office culture is talent turn-over. And what does turn-over mean? Money. Money you have to spend on hiring new talent — over and over again, depending on your turn-over rate.

The overall cost of a bad hire can range from 30% to 150% of the position’s salary, says Forbes. It costs organisations $17,841 just to hire a mid-level employee, says HTD Mag, while it costs $23,059 just to hire a senior-level manager and $34,440 to hire a new executive.

Then, once you spend all the money to hire someone, studies show that, if you have poor onboarding, there’s a 28% chance that new hire will quit within the first three months.

Can you see the money running down the drain?

At The Engaging Executive we have developed a ‘Cost of a Poor Culture’ calculator. If you would like to discuss about this and more, book a chat with me using this link.

If you would like a tip on HR plans for the future, read here.