Study: Strong Workplace Culture Drives Retention and Engagement, Yet Gaps Persist

New research from HR Research Institute and Motivosity shows employees in high-performing cultures are significantly more likely to receive recognition and trust leadership, but many organizations lack awareness of engagement metrics like eNPS.

SA Metrowire Staff
Business
Study: Strong Workplace Culture Drives Retention and Engagement, Yet Gaps Persist

A new study released Tuesday by the HR Research Institute in partnership with Motivosity reveals that workplace culture remains a critical driver of employee retention and engagement. The State of Workplace Culture and Connection 2026, based on a survey of 5,538 employees, managers, and executives, highlights the tangible benefits of strong cultures while identifying persistent gaps that undermine connection.

Employees in high-performing cultures are nearly 16 times more likely to receive meaningful recognition from their managers on a weekly basis, over 9 times more likely to be recognized by peers, and more than 8 times as likely to have high trust in organizational leadership, according to the report. However, the study also found that over a third of employees rarely receive meaningful recognition from peers (35%) or managers (37%), and many feel disconnected from broader leadership despite strong ties with immediate teams.

“Culture is built through everyday moments of connection; not giving your people more stuff or a fully-stocked breakroom,” said Scott Johnson, CEO and Founder of Motivosity. “This report confirms what we’ve long believed at Motivosity: when employees feel seen, valued, and connected, trust grows, engagement improves, and performance follows.”

The research underscores that many organizations are not fully aware of their cultural gaps. In fact, 59% of managers and executives do not know their Employee Net Promoter Score (eNPS), a key measure of engagement and loyalty. This “data blindness” makes it harder to spot problems before they affect retention and performance.

“Strong workplace culture isn’t just a nice-to-have. It’s a key business driver,” stated Debbie McGrath, CEO of HR.com. “These findings highlight how HR leaders can better understand culture, address engagement gaps, and create workplaces where employees thrive and organizations succeed.”

The report suggests that by using modern listening tools and analytics, organizations can move from guesswork to proactive cultural management, improving recognition, trust, and the overall employee experience. The full report is available for download at HR Research Institute.

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