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The Cost of Instability

For years, culture and its impact on stability have been treated as something subjective, something you can’t measure, only react to. 

 

But culture isn’t just a fuzzy feeling.

It’s a set of conditions.

An environment.

A system you can measure, manage, and scale.

 

When the environment isn’t clear, companies bleed value in ways that don’t show up in the P&L until it’s too late. Great people leave. Teams spin in circles. Customers lose faith. Instability doesn’t just slow growth... it compounds losses across turnover, productivity, retention, and reputation.

 

Our Cost of Instability Calculator Tool brings the hidden cost to life. Enter a few numbers and see the price of instability inside your business today. 

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The Hidden Costs of Misalignment

Misaligned cultures don’t just affect employee morale, they have direct financial implications that could be draining millions from your organisation.

 

Here’s what it could be costing you, along with evidence supporting the power of purpose-driven, aligned cultures.

employee turnover

  • The Cost:

    • ​​Replacing an employee can cost £25,000 - £50,000, with disengagement increasing turnover by 30% .

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  • The Evidence:

    • Gallup reports that businesses with highly engaged employees experience 59% lower turnover and 21% higher profitability .

    • According to SHRM, employee replacement costs are typically 6-9 months of salary per individual .

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lost
productivity

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  • The Cost:

    • Disengaged employees are 30% less productive, costing businesses £3,000 per £10,000 in payroll annually .

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  • The Evidence:

    • Gallup's State of the Global Workplace found that only 20% of employees worldwide feel engaged at work, resulting in over £7 trillion in lost productivity globally .

    • Purpose-driven teams report 21% greater productivity and 41% lower absenteeism

customer
retention

  • The Cost:

    • ​​A 5% drop in customer retention can cost businesses between 25%-95% of profits .

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  • The Evidence:

    • Bain & Company research shows that increasing customer retention rates by 5% can boost profits by up to 95% .

    • Zeno Group’s Strength of Purpose Study found that customers are 4x more likely to buy from purpose-led brands and 6x more likely to defend them in a crisis .

stagnation business

brand
reputation

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  • The Cost:

    • A loss of trust can reduce market share by 10%-15% and decrease customer acquisition rates significantly.

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  • The Evidence:

    • PwC reports that companies with strong trust ratings see a 30% higher market share growth over competitors .

    • Edelman’s Trust Barometer found that 88% of customers would stop buying from a brand they felt didn’t align with their values.

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