Scaling Without Screaming

Engagement Economics: How Company Culture Drives Bottom-Line Results

• catherine Kawalerowski • Season 1 • Episode 6

Share episode

What happens when top talent walks through your door only to discover a workplace where employees are simply watching the clock tick down? The damage goes far beyond mere discomfort it creates a financial hemorrhage most companies can't afford in today's competitive landscape.

Welcome to a deep dive into the engagement equation that powers sustainable scaling. When we talk about company culture, we're not discussing optional perks or HR buzzwords we're examining the very air your employees breathe and the foundation upon which your entire business stands.

The numbers tell a sobering story. With recruitment costs ranging from $4,000 to $18,000 per hire in the US (and substantially more for executive talent), disengagement creates a revolving door that quickly becomes unsustainable. But the greatest cost isn't measured in dollars spent it's in the top-tier talent that walks away from companies with toxic cultures. These high-performers have a sixth sense for environments where employees have mentally checked out.

The good news? The elements that create genuine engagement aren't complicated, though they require intentional cultivation. Trust that empowers autonomy literally activates reward pathways in employees' brains. Regular, specific recognition transforms motivation in ways generic praise cannot. Collaborative environments break down the silos that waste energy and resources. And treating employee wellbeing as a core business strategy rather than a perk protects your most valuable assets.

Ready to build a culture that fuels both your people and your profits? Schedule a free consultation at theSOPspecialist.com where we can discuss your company's specific challenges and opportunities. Your culture isn't something separate from your business it is the operating system that determines how efficiently everything else functions.

🎯 Ready to scale without screaming?
Take the Systems Health Quiz or book a private consult at 👉 TheSOPSpecialist.com

📬 Stay connected for more clarity, calm, and conversion at Scaling Without Screaming.
“Calm down. Decode it. Profit.”

Speaker 1:

Hey everyone, welcome back to Scaling Without Screaming. I am your host, katherine Kaye, and as a lean Six Sigma Greenbelt and someone who has built and scaled many businesses, I know that the real engine of growth isn't just about strategy. It has to do with your people in your company. In my last podcast, I discussed how a strong culture will act like a magnet pulling in top tier talent that many companies need desperately to scale today. Now let me be clear about something to scale today. Now let me be clear about something. When I refer to company culture, I'm talking about the shared values, beliefs, attitudes and behaviors that shape the employee's experience and overall work environment. This encompasses how people interact with each other, how decisions are made and the general atmosphere within that organization, which is entirely separate from individual religious beliefs or practices. But what happens once a top tier talent or your new employees walk in the door for the first time? So let's get into it. This is where the rubber meets the road, and it all comes down to engagement. Think of it this way you can attract the best car drivers for NASCAR, but if your pit crew is disengaged and your fuel is low, you're not going to win any races and you're definitely not going to get off the starting line. So now, when I talk about company culture, I'm going to let you also know that this isn't a touchy-feely HR buzzword. This has a direct and very measurable impact on your bottom line. Now, after working with many companies and conducting my own studies, with research and fixing a lot of companies' culture, I have concluded and observed that employees who are highly engaged are significantly more productive than the ones who are disengaged. They tend to be more invested in the company's success, they're innovative in problem solving and, critically or crucially, however you want to say it they stick around a whole lot longer.

Speaker 1:

Now let's think just for a moment the sheer cost If an employee is disengaged. Top tier talent who comes into your company will see that employees are disengaged. They have a sense about it, like you would have a sense when you walk into a room and something just doesn't feel right. So let me give you a general idea the direct cost of recruiting and hiring an employee. In the US today, the average employee cost ranges between $4,000 and about $18,000 per hire. However, you should realistically expect to invest a heck of a lot more when you're trying to attract top tier employees. To attract top tier employees, especially those ones at the very, very high levels. So if your employees are disengaged, do you honestly think that a top tier employee is going to come to your company? Heck, no, they are not. Heck, no, they are not. Now, it is staggering to understand that the productivity loss when employees are just not for the company, they just don't care because they are so disengaged, you will encounter higher error rates and that constant drain of turnover which we discussed in the last episode. And so if you take one employee at $18,000 and you repeatedly do this over and over again, the cost is significant and companies today cannot afford that cost.

Speaker 1:

So what's the secret sauce that brews this potent engagement cocktail? And it's very simple, and it's the reason why I started my podcast talking about company's culture. Think of your culture as the underlying operating system for your team. It is one that fosters trust, where people feel they have a real say and their contribution matters, and not one that is built on fear and mismanagement, where employees are just waiting for the time clock to tick down so they can go home and get away from the company. I know of a company this very moment Now. I don't mention names or where they're located. But it is very sad to see that their employees are just not engaged. They can't keep employees. Top-tier talent won't even go near this company and it is a great company.

Speaker 1:

But it goes to show that you really do need to take care of your company's culture so you can scale, even going lean. If your employees are disengaged, you can forget about going lean. It isn't going to happen. You can forget about going lean. It isn't going to happen.

Speaker 1:

Now consider the power of trust and autonomy. When you generally trust your people to do their job, you can give them the space to own their work. Something absolutely remarkable happens. It taps into a fundamental human need for control and confidence. Neuroscientifically, it actually activates reward path brains in your brain. When people feel valued, they take initiative. They become amazing problem solvers, not just task executors.

Speaker 1:

Now, on the flip side, there's always a push and pull. For every action there's a reaction. I live by that rule. So on the flip side, a culture devoid of trust Forces people into a state of constant vigilance, stifling their creativity and bleeding their resentment. They just don't want to be there, they just. But people don't have a choice. They have to work.

Speaker 1:

Yes, I know a lot of people will say well, why don't they just quit? Well, it's not that easy, especially when you got a family to support. You just deal and just keep working. And it's tough. It's hard for employees. I've seen both sides fix both sides and there's some, yes, that I cannot fix.

Speaker 1:

And it's not just about the big things, it's about recognition. It's not just a pat on the back and annual rewards hey, you've done a good job. Annual rewards means yearly. It's about the everyday acknowledgements. It's the specific feedback that tells people their work is seen and appreciated. I know also of a company I worked with. We incorporated five-minute meetings before the shift started. We acknowledged the employees, we told them they're doing a great job and within let's say, 30 days I think it was, or a little bit more the whole atmosphere of the company changed. It was amazing to see. Now, when recognition is genuine and tied to a specific contributions, it will reinforce positive behaviors and fuel amazing motivation, and fuel amazing motivation in a way that just a simple generic good job simply can't.

Speaker 1:

Then there's the crucial element of collaboration. Scaling a business is a team sport Again. Scaling a business is a team sport Again. Scaling a business is a team sport. Your culture either facilitates seamless teamwork or it builds silos that you just can't break the walls, no matter what you do. A culture that values open communication, where diverse perspectives are not only welcomed but actively sought after, and where there's a shared commitment to collective goals. That's where the innovation thrives and problems get solved efficiently. A fractured culture You're going to need to expect turf wars, huge miscommunication and a whole lot of wasted energy and money because people work against each other instead of together.

Speaker 1:

Finally, let's talk about well-being. For way too long it's been seen as a perk, a nice to have, but in today's demanding environment, prioritizing your team's mental and physical well-being is a core business strategy. I'm sure you've seen it Burnout is rampant and it has a direct and devastating impact on a company's productivity, team creativity and overall retention. Keeping employees A culture that actively supports well-being, that encourages work-life balance, has much, as scaling allows and provides resources for mental and physical health, isn't just being compassionate, it is a smart business move on your profits. So when you actually boil it all down. So when you actually boil it all down, you can see that your company culture isn't some separate entity. It is the very air your employees breathe and it directly dictates how engaged and productive they will be. It is the foundation upon which you built this great company, on Not just your team, but your entire scaling strategy.

Speaker 1:

If you're seeing a disconnect, watch it. Look around. If you're seeing this disconnect, if your team isn't firing on all cylinders and projects are not being met on time, take a real hard look at the culture around that and you will see what is going on with your company. Going on with your company. This is the root of engagement equation is your company culture. There is way too many different people out there. You have new employees coming in, you have old employees there back and forth, and people just can't meet in the middle there, back and forth, and people just can't meet in the middle.

Speaker 1:

So let's explore how to build a culture that truly fuels the people and your profits. Come find me on the SOPspecialistcom Schedule a free consultation call with me. I chat for a while. We can talk for 30 minutes or an hour and a half, whatever you need, so we can, you know, communicate about your company and see what's happening. So join me next time as we tackle more vital aspects of growing your million dollar or more business. You can find me on LinkedIn. I'm around. See you next time.