Why People Don't Quit Companies, They Quit Cultures: Part 1

Why People Don't Quit Companies, They Quit Cultures

Part 1: The Paycheck Myth and the Pull of Culture

When people hand in their resignation letters, the most common response is overly simplified: "They offered me more money." On the surface, it appears to be a financial decision; a larger paycheck, a more robust benefits package, maybe even a signing bonus. However, go one layer deeper, and the reality is much more complicated; in fact, people typically do not leave for financial gain. They leave for culture.

Of course, compensation matters. We need to buy groceries, pay the mortgage, and support the family. And this is undoubtedly a way of recognizing our efforts. However, when poverty is not a factor, pay is not the strongest driver of loyalty. Loyalty to organizations is based in culture, the daily environment of fairness, recognition, belonging, and development. Pay may be the key that opens the door for leaving, but culture is a major driver for stepping through the door.

Culture is More Than Perks

Of course, it's easy to simplify culture to the prominent symbols, such as free coffee in the breakroom, casual Fridays, and a cool office space. But culture goes beyond that. Culture is the totality of lived experiences that employees take with them each day:

How do leaders show up? are they good listeners? Are they visibly present?

How does recognition work? Is my effort recognized or ignored?

How is fairness practiced? Are rewards, promotions, and workloads shared equitably?

How safe does it feel to speak up? Will we have a conversation, or be shut down?

It is those subtle, everyday interactions that weave the very fabric of culture. Unlike compensation systems, culture cannot be automated; it exists only in human connection. 

The Deeper Meaning of "Appropriate Compensation"

When we talk about remuneration, we often reduce it to raw dollars. However, for employees, pay is assessed through the filters of fairness and validation. Fair compensation is not about "how much," but about "how well it resonates with my effort and value". 

Fairness: Two counterparts pulling similar weight shouldn't be worlds apart in p