The Real Competitive Edge in the War for Talent? Culture

Struggling to retain top talent in your firm? Before we get to solutions, let's first look at some data.

Some Data Points

The State of Retention

Gallup reported that employee engagement in the United States reached its lowest point in a decade during 2024, with only 31% of employees reporting high engagement levels. The percentage of actively disengaged employees has increased to 17%, compounding workplace productivity challenges. 1 

Key Drivers of Engagement Decline

Fundamental workplace elements are deteriorating. 1

• Only 46% of employees clearly understand what is expected of them at work.

• Just 39% strongly feel that someone at work cares about them as a person. 

• Only 30% strongly agree that someone at work encourages their development.

Additionally, the decline in confidence in leadership has emerged as the top driver of engagement. 2

For CPA firms, turnover rates of 17% are not uncommon. Even more concerning is that the three-year retention data shows that public accounting firms lose 41% of their staff within three years. 3

The Solution?

The solution isn’t more perks—it’s a culture rooted in purpose and leadership. Here’s what high-performing firms do differently.

"Culture eats strategy for breakfast". – Peter Drucker

Let’s talk about the elephant in every leadership meeting: talent is leaving, and it’s not because of pay.

The alignment between organizational values and actual behavior has emerged as a critical factor in retention decisions. Employees increasingly seek authenticity in organizational culture.

Here’s what’s clear—compensation may get them in the door, but culture is what keeps them.

We’re in a new era of professional leadership, where people are no longer willing to sacrifice well-being, connection, or purpose for a paycheck. Employees are seeking meaning.

They’re looking for alignment. And they’re staying where they feel seen, valued, and inspired.

In other words, they’re looking for a culture that matters.

Now, culture isn’t just a mission statement or a quarterly offsite. It’s how people behave, communicate, and lead when no one’s watching. It’s how you recognize effort, give feedback, and live your values—not just talk about them.

In coaching firm leaders, I’ve seen how culture determines whether your team is thriving or quietly quitting.

High performance and high levels of retention are not mutually exclusive.

Here’s what high-performing, high-retention firms do:

🟢    They align their values with real behavior.

🟢     They communicate consistently and transparently.

🟢     They recognize people often and authentically.

🟢     They create environments where people can grow, not just perform.

🟢 They invest in their people and challenge them with meaningful projects.

As one of my clients put it, “Peopling is hard.” Yes, it is—but that’s exactly why it matters.

Culture is your differentiator.

In a competitive talent market, it’s not what you offer—it’s how people feel when they work with you.

If your team is disengaged or drifting, ask yourself:

🔴       Do our people feel safe being authentic here?

🔴      Are we reinforcing values with action?

🔴     Do we recognize behavior that aligns with who we say we are?

If you want to attract and retain the right people, your culture must become your strongest asset.

Are you ready to create a culture that retains top talent and drives performance? Let’s talk.

I work with firm leaders and their teams to build authentic, high-trust environments that people want to be part of.

CLICK HERE to schedule a strategy call and explore how we can transform your culture.

 Until Next Time!