People Vs. Profit: How To Build A Culture Where You Don't Have To Choose

Forbes

01-08-2025

Natalie Ruiz, CEO of AnswerConnect, leads with a human-centered approach, blending tech with real connections to help businesses grow 24/7.
Making your business a great place to work doesn't have to compete with profitability. I've witnessed the transformative power of company culture and its positive impact on financial success. In fact, culture can be the very engine that drives sustainable performance. Here's why.
The Myth Of The Trade-Off
It's tempting to view culture initiatives, such as team-building retreats, values workshops and flexible schedules, as 'soft' investments that detract from business activity. Yet, studies show that companies with highly engaged employees outperform their peers by double-digit margins in turnover and profitability. Employees who feel connected to purpose, aligned with values and empowered to innovate deliver better results.
Motivation And Engagement: The Engines Of Performance
At AnswerConnect, we measure our success not only in monthly revenue but also in metrics like customer lifetime value (CLV) and voluntary turnover rate. Here's why these 'people metrics' matter:
Typically, engaged employees go the extra mile—solving problems, delighting clients and driving process improvements that boost margins. Motivation can be as simple as recognizing and expressing gratitude when an employee does something great.
At our company, we work to create a culture that celebrates wins and hard work, and my team regularly gives public shoutouts and arranges team meetings to share wins and a cup of coffee virtually. We also have a newsletter that employees can submit to and celebrate their coworkers.
Workplace analytics and advisory firm Gallup estimates that replacing a mid-level hire can cost up to 2x that employee's salary. By fostering a culture of growth and recognition, you can keep turnover low and protect your bottom line.
A culture that celebrates experimentation and intelligent risk encourages breakthroughs in product and service. For example, Google's allowance for 20% of employees' time to develop their own projects led to some of their highest-earning products, including Gmail and Google Ads.
Profit And Purpose: Two Sides Of The Same Coin
People want purpose—your customers, your staff and your stakeholders. Getting clear on who you are as a business, your mission and your values has broad-reaching benefits:
• Purpose attracts customers. Today's consumers and B2B buyers increasingly favor partners whose values mirror their own. A strong culture amplifies brand loyalty and opens doors to referrals.
• Purpose attracts talent. In a candidate-short market, top performers seek workplaces where they can contribute to something bigger than themselves. Culture sells itself in recruitment.
• Purpose powers your people. Clarity of mission sharpens decision-making. When every team member—from the front-line receptionist to the head of product—knows exactly why you do what you do, they can make choices that align with long-term value creation.
• Purpose sustains through downturns. Companies anchored by shared purpose and strong internal values weather storms better, maintaining client relationships and controlling costs without sacrificing morale.
Great Leadership Is A Culture Catalyst
Culture doesn't happen by accident; it's shaped, modeled and reinforced by leadership. Here are just a few of the ways leaders can lead by example when it comes to culture:
• Articulate a clear vision. Define values and goals that inspire teams to collaborate and excel.
• Walk the talk. From the C-suite to middle management, great leaders embody the behaviors they expect: transparency in communication, accountability for results and compassion in people management.
• Invest in development. By dedicating resources—time, training budgets, mentorship programs—to skill building and career progression, you can demonstrate a genuine commitment to employee growth. For example, every employee at every level of our business gets paid learning time—2.5 hours every week. Learning is one of our core values, and taking the time to learn continuously is an expectation for most roles. We are pretty strict about making sure they take it because we want it to be a real benefit, not just a gimmick. Employees log what they have learned through an app and can then share their learnings with teammates in quick video meetings where they discuss their favorite articles, videos and books.
• Measure and iterate. Track cultural and financial KPIs, recognize undercurrents of disengagement early and course-correct through targeted initiatives.
The lesson is clear: Culture investments compound over time through intangible yet powerful advantages—employee loyalty, process improvements and reputational capital—that drive sustainable profitability.
A Partnership, Not A Rivalry
Culture and the bottom line are not adversaries; they are partners. The best CEOs refuse to choose between them because they understand that culture is the differentiator that powers everything from customer delight to innovation to financial resilience. We've built our model on this principle, and the results speak for themselves.
As leaders, our imperative is simple: get the culture right, have a great product or service and the bottom line will follow. When you lead with purpose, invest in people and embody the values you share, you won't have to ask whether culture or profit comes first. You'll enjoy the rewards of both.
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