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The $44.6 Billion Question: How Workplace Culture Issues Impact Your Bottom Line

In my early career, I encountered a team that exemplified both the strengths and pitfalls of strong cohesion. The team had grown up professionally together. Every interaction revealed their shared history. It was inspiring to see such unity. However, I soon realized there was a flip side to this coin. The strong camaraderie between existing members inadvertently created an almost impenetrable barrier for newcomers, making it challenging for new employees to integrate and find their place within the team. Newcomers were treated as outsiders, creating cliques and a toxic environment of exclusion. This scenario underscores a fundamental workplace challenge: What are the long-term implications of such exclusionary workplace cultures on employee retention, productivity, and overall organizational health?

Hidden Cost of Workplace Culture Issues

Let me share some startling statistics with you. According to a 2019 report by the Society for Human Resource Management (SHRM), 20% of U.S. workers have left their jobs due to workplace culture issues. That’s one in five employees walking out the door because they didn’t feel comfortable with the workplace culture.

But this isn’t just a matter of feelings. The Center for American Progress reports that replacing an employee can cost up to 213% their annual salary. This means that for a mid-range position making $50,000 a year, the cost of turnover could be up to $106,500. While these figures are striking, they merely show the tip of the iceberg. According to SHRM, the cost of voluntary turnover due to workplace culture in the United States was estimated at $223 billion over the five years prior to the report. This translates to approximately $44.6 billion annually. Although these statistics encompass a broader spectrum of culture issues, they make a compelling business case for investing in positive workplace culture and inclusivity.

Building Bridges, Not Walls

So, what can you do, as a leader, to create a workplace culture that balances team cohesion with inclusivity? Let’s talk about some strategies:

  1. Revolutionize your onboarding process: Don’t leave new hires to decipher the culture on their own. Instead, proactively share your team’s story, its culture, and even its inside jokes.
  2. Create space for new voices: Actively seek out and amplify the perspectives of your newest team members. Their fresh eyes might unlock your next breakthrough.
  3. Level the playing field: Organize team activities where everyone’s a beginner. When everyone is learning together, you create bonds that include rather than exclude.
  4. Remove hidden barriers: Regularly assess and address subtle obstacles to inclusion. Encourage open dialogue about these challenges and involve the entire team in developing solutions.

By implementing these strategies, you can foster a culture where cohesion and inclusion aren’t mutually exclusive, but mutually reinforcing. Remember, the true strength of a team lies not in the length of their shared history, but in their capacity to embrace and leverage diverse perspectives. Through promoting inclusion, you can create a workplace environment that truly embodies the powerful motto “E pluribus unum”: Out of many, one!

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Adeline (Addy) Maissonet is a Procurement Analyst for the Defense Pricing, Contracting, and Acquisition Policy (DPCAP) within the Office of the Secretary of Defense (OSD), U.S. Department of Defense (DoD). She serves as a senior advisor on contracting policies and procedures and the agency’s representative on the Department’s views on proposed legislation to Congressional members, their staff, and committee staffers. Prior to her current role, Addy served as a Division Chief and Contracting Officer with unlimited warrant authority for the U.S. Army Mission and Installation Contracting Command (MICC) — Fort Eustis, Virginia. Addy holds an MBA in Management and Contracting Level III Certification under the Defense Acquisition Workforce Improvement Act. She is a graduate from Cornell University’s Executive Leadership Certificate Program. In her free time, Addy enjoys hiking and overlanding with her family and friends.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of the Department of Defense.

Photo credit: Wavebreakmedia at iStock

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