Why People Don't Quit Companies, They Quit Cultures- Part 3

Part 3: The Support–Loyalty Equation

So far, we have seen how culture wins against money (Part 1) and the relationship between reciprocity and loyalty (Part 2). However, there's a more fundamental question: why do support, fairness, and recognition matter so much to employees? Why does one person have a sense of pride at their job while another quietly counts the days until they can leave? The answer lies in Organizational Support Theory (OST), which helps explain how employees make sense of the signals an organization sends.

Organizational Support Theory: The Signals of an Organization

OST explains that every decision, policy, and interaction is a signal from an organization to its employees about how much it values them. People don’t measure care in words; they measure it in actions. Through open lines of communication, and recognition for their contributions, employees conclude: "This organization cares about me." When support is not visible, when pay seems unfair, when recognition is elusive, and leaders are aloof, employees arrive at the opposite conclusion: "I can be replaced here." These signals not only drive short-term behaviors related to job performance but also form identity. Employees begin to associate part of their self-worth with the way they are treated at work. Therefore, positive support fosters pride and loyalty, while negative signals erode morale and lead to employee turnover. Fairness, Recognition, and Fair Compensation

The three cultural anchors behind those signals are:

Fairness – Employees want fairness in pay, promotions, and work. The moment they recognize favoritism or behind-the-scenes rules, loyalty starts to disintegrate.

Recognition: Employees must understand that their contributions are essential. A paycheck is not a "thank you." Recognition is.

Fair Compensation: Compensation is more than a number. It is valuable. When employees go the extra mile, they want to see fairness represented in their tangible compensation and intangible recognition.

Together, these anchors create the sense that the employee and organization's relationship is balanced, respectful, and worth investing in and committing to.

The Mutual Benefits of a Healthy Culture

Culture is a "soft" issue for leaders to grasp. Healthy cultures can create measurable returns:

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