Why People Don't Quit Companies, They Quit Cultures- Part 2

Why People Don't Quit Companies, They Quit Cultures

Part 2: Culture as Social Exchange 

If culture is the deep anchor keeping people engaged, what gives it its stickiness? Why do some workers feel tethered to their place of work, and some are always one foot out the door? The answer lies in psychology, specifically, how humans perceive and respond to support. Work is ultimately a relationship. Employees provide effort, time, creativity, and energy. Organizations provide resources, recognition, compensation, and opportunities for professional development. When the relationship feels fair, loyalty emerges. When a relationship feels unbalanced, it breaks down. 

Perceived Organizational Support: Do They Value Me?

One of the most significant contributors to job satisfaction is what psychologists call Perceived Organizational Support (POS), which refers to the extent to which the organization values its employees' contributions and is concerned with their wellbeing. Employees don't derive this from a single policy, announcement, or communication. They derive it from everyday daily encounters: a manager noticing stress and offering support, a promotion communicated transparently as earned and fair or the acknowledgement of contributors in the moment when something extraordinary happens. When POS is high, it is correlated with higher job satisfaction, greater engagement, and a lower desire to quit. When the POS is low, the employee starts looking at job postings, even if the pay is decent.

Social Exchange Theory: The Concept of Reciprocity

This is Social Exchange Theory. The concept is simple yet profound: relationships, including professional ones, are built through reciprocity. When an organization invests in its people through support, opportunities for growth, emotional support, and equity, then employees will, in turn, reciprocate by giving their loyalty, effort, and commitment. When an organization ignores or exploits its people, employees, in turn, will reciprocate with disengagement, diminished effort, and, ultimately, departure. Consider the example of an employee who remains late working on a project. They know it will benefit the organization due to their effort. But they expect (perhaps consciously, or perhaps not) that their effort will be reciprocated. Perha