investing-in-company-culture

Why Investing in Your Culture is Worth It

Is investing in your company culture worth it? Employee engagement programs can be tough to measure, but, ultimately, investments in your company culture and employer brand lead to recruiting cost and time savings, higher candidate quality, upped productivity levels and increased retention rates.

Culture case studies

The proof is in the pudding. By investing in its employer brand and company culture initiatives, Expedia, Inc. lowered its cost-per-hire to $1,700, 50% below than the national CPH average. TRW Automotive decreased its time-to-hire by 50%, attracting quality candidates in half the time. VMware sourced 23 quality hires through Glassdoor, including hard-to-fill positions like engineers.

Here are five reasons why investing in your company culture is worth it:

1. You’ll save money recruiting. Did you know that companies with a good employer brand see an average of 22% in reduced recruitment fees and enjoy 50% cost-per-hire savings?

When you invest in your company’s culture and brand, your company reaps the benefits. For example, you’ll enjoy higher quality applicants and lower recruiting costs when candidates have done their homework and self-qualify themselves for open positions.

Action Plan: Want to get started saving money on recruiting? Get involved! Showcase your company culture on sites like Glassdoor. Read and respond to reviews, take feedback to heart and initiate positive organizational change.

[Related: Employers, learn how customer-focused cultures win in employee engagement]

2. You’ll save time recruiting. When job seekers see that your company values employee feedback and maintains a positive and fun company culture, they are more likely to apply to positions at your organization. Are you monitoring what employees and candidates are saying about you on Glassdoor?
Action Plan: 94% of Glassdoor members are likely to apply to a job if the employer actively manages its employer brand. Want candidates to automatically apply to your open positions? Recruit on platforms like Glassdoor where candidates can self-qualify – you’ll see fewer unqualified resumes and save time recruiting.

3. You’ll increase candidate quality. It’s been proven that investing in your employer brand and company culture increases candidate quality by 2x. Quality candidates are knowledgeable and have done substantial research on your company’s culture to determine if it’s the right fit.
Action Plan: Invest in your employer brand and start monitoring your reputation. Your reputation says a lot about your company’s culture, so join the conversation!
4. You’ll raise productivity levels. Studies show that the more you invest in your employees’ happiness, the better work they’ll do for you. Happy employees = productive employees!


To raise employee productivity levels, show employees you care. Companies with engaged employees outperform those without engaged employees by up to 202%. Additionally, increasing employee engagement investments by 10% can increase profits by $2,400 per employee, per year.
Action Plan: Keep your employees happy by celebrating company and department wins. Recognize individual and team performance!
5. You’ll increase retention rates. Job seekers ultimately want to work for (and stay at) a company that values transparency and fosters a positive company culture. Each year, $11 billion is lost due to employee turnover. Additionally, 96% of job seekers say it’s important to work for a company that embraces transparency.

Action Plan: Ensure managers live up to their full leadership potential by providing them the tools necessary to succeed in their roles. This will help and encourage managers (and their reports) to stick around for the long haul and give you their best work.

Does company culture pay off?

To look into this issue a bit further, we analyzed the stock performance of “Best Places to Work” companies in our Does Company Culture Pay Off report to see if there is a link between satisfied employees and stock performance.

We found that companies named to Glassdoor’s “Best Places to Work” list broadly outperformed the S&P from 2009 to 2014. We also found that being named a Glassdoor “Best Place to Work” leads to an approximate 0.75% jump in stock returns during the 10 days after the announcement.

What’s the bottom line? Companies who prioritize employee sentiment and company culture perform better overall in the stock market.

To learn more, download our new presentation deck 15 Stats that Prove the ROI of Company Culture to make the case at your organization to invest in your culture.