Study: Strong Workplace Culture Drives Retention and Engagement, Yet Many Leaders Lack Awareness

New research from the HR Research Institute and Motivosity reveals that employees in high-performing cultures are significantly more likely to receive recognition and trust leadership, but over a third rarely feel recognized and most managers remain unaware of key engagement metrics.

SD Metrowire Staff
Business
Study: Strong Workplace Culture Drives Retention and Engagement, Yet Many Leaders Lack Awareness

A new study, The State of Workplace Culture and Connection 2026, conducted by the HR Research Institute in partnership with Motivosity, underscores the critical role of culture in employee retention and engagement. Based on a survey of 5,538 employees, managers, and executives, the research highlights that organizations with strong cultures see substantially higher levels of recognition and trust.

Employees in high-performing cultures are nearly 16 times more likely to receive meaningful recognition from managers weekly, over 9 times more likely to be recognized by peers, and more than 8 times as likely to have high trust in organizational leadership. These findings demonstrate that culture is not merely a soft concept but a tangible driver of employee experience and business outcomes.

Despite these benefits, the study reveals persistent gaps. Over a third of employees report rarely receiving meaningful recognition from peers (35%) or managers (37%). Many feel disconnected from broader leadership, even while maintaining strong ties with immediate teams. This disconnect suggests that organizations may be overlooking critical opportunities to foster connection and engagement.

Scott Johnson, CEO and Founder of Motivosity, emphasized that culture is built through everyday moments of connection, not through material perks. “This report confirms what we’ve long believed at Motivosity: when employees feel seen, valued, and connected, trust grows, engagement improves, and performance follows,” he said. Johnson noted that successful organizations in 2026 are making culture a core part of their business strategy, prioritizing connection, engagement, and recognition consistently.

A key issue identified in the research is what the authors call “data blindness.” Fifty-nine percent of managers and executives do not know their Employee Net Promoter Score (eNPS), a key measure of engagement and loyalty. This lack of awareness makes it harder to identify and address problems before they impact retention and performance. The report suggests that modern listening tools and analytics can help organizations move from guesswork to proactive cultural management.

Debbie McGrath, CEO of HR.com, stated that strong workplace culture is a key business driver. “These findings highlight how HR leaders can better understand culture, address engagement gaps, and create workplaces where employees thrive and organizations succeed,” she said.

The full report is available for download at HR Research Institute. The study provides actionable insights for HR professionals aiming to improve recognition, trust, and overall employee experience.

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