6 Warning Signs Your Company Culture Needs a Revamp Advice from Top Company Culture Consultant, Will Scott

Why isn’t your team reaching its full potential despite competitive salaries and attractive perks? Why do talented employees keep leaving, even when everything seems fine on the surface?

These challenges often point to deeper issues within your company culture. A misaligned or negative culture doesn’t just impact morale—it can erode productivity, team dynamics, and even your bottom line. Ignoring these signs can worsen the problem, leading to costly employee turnover and disengagement.

In this blog, we’ll explore six key warning signs that indicate your company culture needs a refresh—and share actionable insights from Will Scott, a leading company culture consultant and author of The Culture Fix®.

6 Signs You Need to Transform Your Company Culture

Detecting culture issues early allows you to address them before they cause lasting damage. Here’s what to watch for:

1. Employees Don’t Know the Core Values

Core values are the foundation of company culture—they act as a cultural compass, guiding behavior and decision-making. When values are unclear or not actively used, employees can feel disconnected and misaligned.

A quick test: ask employees to recite the values or explain how they apply to their work. If their responses are vague, it’s time for a refresh. Strong core values should be short, specific, and sticky—phrases like “Act with Integrity,” “Deliver Excellence,” or “Collaborate to Innovate” are easy to recall and apply. When employees can confidently articulate and embody these values, it drives alignment, purpose, and consistency across teams.

Signs to Watch:

• Employees struggle to express or recall the company’s core values, even during team meetings or evaluations.
• Decisions made across teams feel inconsistent, leading to misalignment and inefficiencies.
• Daily actions and workplace behaviors rarely reflect the stated core values, causing a gap between what’s said and what’s done.

Action Step:
Define 3-5 concise and authentic core values that capture your organization’s unique identity. Use them daily: integrate them into team huddles, embed them in job descriptions, and reinforce them during performance reviews. A simple tool like CoreScore™ can help measure and track how well these values are being lived.

2. Lack of Trust and Transparency

Trust and transparency are essential to a healthy workplace culture. When employees feel left out of important updates or perceive leadership as inaccessible, it erodes their sense of security and connection. Leaders set the tone by sharing openly and frequently—adopting a “Share First” mindset ensures that communication is clear, honest, and consistent. For example, instead of simply announcing, “We’re restructuring,” explain the purpose: “We’re restructuring to improve response times by 30% and align with our growth goals.”

Transparent communication fosters collaboration, builds trust, and motivates teams to work toward shared objectives. Employees value openness, especially when it involves the ‘why’ behind decisions.

Signs to Watch:

• Employees feel disconnected because they are not included in updates on key company decisions or changes.
• Leadership is perceived as inaccessible, with limited interaction or visibility in day-to-day operations.
• Teams hesitate to voice concerns or ideas due to a lack of psychological safety.

Action Step:
Establish open communication channels, such as regular town halls or weekly email updates. Leaders should be visible, approachable, and proactive in addressing employee concerns. Clear, direct language helps employees understand decisions and feel valued.

3. High Employee Turnover and Low Engagement

High turnover and low engagement signal a deeper cultural misalignment. Research from Gallup shows that organizations with highly engaged employees experience 23% higher profitability and 41% lower absenteeism. When employees feel disconnected from the company’s purpose or mission, they’re less likely to stay or contribute their best work.

A purpose-driven culture creates meaningful connections that inspire employees to engage fully. For example, a company with a clear CorePurpose™, such as “Improving Lives Through Better Technology,” can show employees how their roles contri           bute to a larger impact, fostering loyalty and enthusiasm.

Signs to Watch:

• Resignation letters are becoming common, and employees often cite dissatisfaction or lack of growth as reasons for leaving.
• Exit interviews reveal recurring themes of misalignment with leadership or the company’s values.
• Remaining employees show lower enthusiasm, contributing minimally and often seeking external opportunities.

Action Step:
Use Culture Checkup™ surveys to identify areas for improvement. Conduct exit interviews to uncover why employees leave, and focus hiring practices on cultural fit in addition to skills. Define your CorePurpose™ and tie employee roles to its mission to inspire connection and engagement.

4. Toxic Work Environment

A toxic workplace—characterized by gossip, micromanagement, or persistent conflict—can damage morale, increase stress, and drive talent away. Toxicity often thrives in silence, which is why leaders must address harmful behaviors immediately. Using a framework like “See It, Say It, Solve It” helps teams recognize issues, address them constructively, and collaborate on solutions.

For example, if recurring conflicts arise between teams, leaders can host facilitated discussions to identify the root causes and set clear boundaries for respectful collaboration. Proactively addressing toxicity protects team morale and promotes a healthier, more empathetic workplace.

Signs to Watch:

• Persistent conflicts among employees or between leaders create a hostile atmosphere.
• Complaints about colleagues or management surface frequently during feedback sessions.
• Employees report feeling undervalued or unsupported, leading to burnout and frustration.

Action Step:
Adopt a zero-tolerance policy for toxic behaviors, and provide simple ways for employees to report issues, such as anonymous suggestion boxes or scheduled one-on-one check-ins. Use tools like Notice & Nominate™ to spotlight and reward positive behaviors that align with your core values.                                                        

5. Low Employee Engagement

Disengaged employees cost organizations significantly, with studies by SHRM showing disengagement costs U.S. companies up to $550 billion annually in lost productivity. Low engagement manifests in minimal participation, lack of enthusiasm, and reduced productivity.

Creating engagement starts with “small wins,” such as recognizing individual contributions during team meetings or organizing team-building activities. For instance, a monthly “Shoutout Session” where employees highlight each other’s achievements can foster connection and pride.

Signs to Watch:

• Team members exhibit minimal energy or enthusiasm during meetings or events.
• Employees rarely participate in discussions, offer ideas, or go beyond their basic duties.
• Feedback surveys highlight a lack of motivation and unclear growth opportunities.

Action Step:
Host quick, regular engagement feedback loops, like a weekly “Pulse Check” where employees rate their week on a scale of 1-5 and suggest improvements. Use this data to implement meaningful changes, such as adding needed resources or introducing new training programs.

6. Poor Customer and Employee Experiences

Employee dissatisfaction often spills into customer interactions, leading to complaints and damaging the company’s reputation. Research shows that happier employees deliver better service, which directly impacts customer loyalty and satisfaction. For example, celebrating how an employee’s idea improved customer outcomes can reinforce the connection between great service and workplace culture.

Signs to Watch:

• Customer satisfaction scores decline, and complaints about service quality increase.
• Employee reviews on platforms like Glassdoor highlight dissatisfaction or disengagement.
• Teams fail to collaborate effectively, leading to inefficiencies and missed opportunities.

Action Step:
Regularly survey both employees and customers to identify overlapping issues. Use insights to implement changes that benefit both groups, such as better training or improved processes. Celebrate wins publicly—whether it’s hitting a customer milestone or receiving positive feedback—to tie these successes back to your cultural values.

When to Call a Culture Consultant

If you’ve noticed any of these warning signs, it’s time to act. A culture consultant can uncover the underlying issues and guide you through proven methods to rebuild a thriving culture. The Culture Fix offers tailored solutions, from leadership coaching to tools like Journey to Purpose™, to help you transform your organization.

Small Steps, Big Impact: Additional Tips

Improving your culture doesn’t always require sweeping changes. Try these:

• Encourage open communication to ensure everyone feels heard.
• Recognize and reward employees for their contributions, big and small.
• Promote work-life balance by offering flexibility and well-being initiatives.

These small shifts can make a big difference in building a positive, motivated workplace.

Employee Engagement Services: The Key to Culture Success

At The Culture Fix, we’ve helped countless organizations turn their culture into a competitive advantage. Using tools like CorePeople Processes™, we empower leaders to build alignment, trust, and thriving workplaces where employees love where they work, why they work, and who they work with.

Conclusion

"If your culture lacks something important, don’t wait. Codify it into your core values. When values are authentic, actionable, and meaningful, they naturally shape behavior and drive success," says Will Scott.

Ready to revamp your culture? Contact The Culture Fix today and start your journey to a healthier, more inspired workplace.