Creating a People-First Culture: Resulting in Great Retention

In today’s competitive landscape, where 3 million Americans quit their jobs each month and more than 25% of employees are in a high-retention-risk category, building a people-first culture isn’t just good business practice—it’s essential for survival. The numbers tell a compelling story: 87% of HR leaders consider improved retention a critical or high priority for the next five years, and companies with highly engaged workforces are 21% more profitable.

The question isn’t whether to prioritize your people, it’s how to do it effectively. Recent insights from industry leaders who have successfully transformed their firms reveal that when you truly put people first, everything else—growth, revenue, client satisfaction—follows naturally.

The Foundation: Understanding Your Multi-Generational Workforce

Before building a people-first culture, it’s crucial to understand that one size does not fit all. Today’s workforce spans multiple generations, each with distinct motivations and expectations:

• Baby Boomers (1946-1964) value retirement benefits, flexibility, subject matter expert roles, acknowledgment of expertise, mentoring opportunities, and new challenges.

• Generation X (1965-1980) prioritizes legacy, financial security, productivity, independence, culture, flexibility, work-life harmony, awards/recognition, and growth opportunities.

• Millennials (1981-1996) seek culture, career paths, growth opportunities, adaptability, security, community engagement, transparency, and digital engagement.

• Generation Z (1997-2012) values culture, career paths, growth opportunities, adaptability, professional development, teamwork, modern approaches, and digital engagement.

Successful firms recognize these differences and create retention strategies that speak to each generation’s unique needs while building bridges between them.

The Employee Experience Journey: Your Retention Roadmap

Creating lasting retention starts with designing your employee experience as thoughtfully as you would design your client experience. This journey encompasses seven critical stages: Attract, Hire, Onboard, Engage, Develop, Feedback, and Depart.

For retention purposes, four stages are particularly critical:

1. Onboard: Affirm the Decision

Organizations with robust onboarding processes improve retention by 82% and productivity by 70%. Yet many firms treat onboarding as a paperwork exercise rather than a relationship-building opportunity.

Pre-boarding Excellence

• Send a welcome kit before day one, including welcome letters from the boss and CEO, a detailed first-week agenda, team directory with photos, brand kit with business cards and company swag, and any necessary home office tools

• Eliminate first-day anxiety by providing clear instructions on parking, arrival time, dress code, and scheduled meetings

Day One Impact

• Conduct an office tour and introductions

• Send a welcome email to staff with fun facts about the new hire

• Share a social media welcome post

• Host a welcome lunch

• Save HR paperwork for after relationship-building activities

• Review job expectations and the first week’s schedule

Post-boarding Development:

• Schedule regular check-ins during weeks 1-3 with different departments

• Conduct a comprehensive review and feedback session at week 4

• Develop a Professional Development Plan (PDP) by week 6

• Set clear performance goals and objectives

Remember: 69% of employees are more likely to stay with a company for three years if they experienced great onboarding, while people with negative onboarding experiences are twice as likely to seek another opportunity immediately.

2. Engage: Build Strengths and Purpose

Engagement is where retention truly takes root. It’s about creating an environment where employees feel valued, connected, and motivated to contribute their best work.

Community Building Strategies:

• Form company committees that give employees leadership opportunities

• Encourage community involvement and volunteer work

• Support industry organizational participation

• Plan regular employee events and team-building activities

• Make work enjoyable—never underestimate the power of fun

Recognition That Resonates:

Employee recognition programs can reduce turnover rates by 31%, but only when recognition is fulfilling, authentic, equitable, embedded in the culture, and personalized. Understanding the five languages of appreciation—words of affirmation,
quality time, acts of service, tangible gifts, and appropriate physical touch—helps leaders recognize employees in ways that truly resonate.

Consider these recognition strategies:

• Individual and group recognition programs

• Celebrate both wins and near-wins

• Tie recognition to your core values

• Create peak moments that employees remember

• Use recognition apps like Bonusly, Kudos, or Motivosity

• Show appreciation consistently, not just during annual reviews

Research shows that 69% of employees would improve their performance if their efforts were appreciated—making recognition one of the highest-impact, lowest-cost retention strategies available.

3. Develop: Coach Career Growth

Professional development is consistently ranked among the top factors influencing employee retention across all generations. Yet many firms approach development reactively rather than strategically.

Strategic Development Elements:

• Create accurate, detailed job descriptions that clearly outline roles and responsibilities

• Set transparent expectations and measurable goals

• Define clear career growth paths

• Develop comprehensive Professional Development Plans (PDPs)

• Provide individual training budgets (46% of AEC firms now offer educational stipends)

• Implement formal in-house training programs (used by 70% of AEC firms)

Mentorship Programs:

Nearly half (46%) of AEC firms have implemented mentorship programs, recognizing their power to accelerate development and build cross-generational connections. Effective mentorship includes:

• Internal mentoring relationships

• External industry mentors

• Peer-to-peer mentoring

• Cross-generational mentoring that allows each generation to teach and learn from others

This approach leverages generational strengths—Baby Boomers sharing deep experience while Gen X and Millennials provide tech-savvy insights.

4. Feedback: Drive Expectations

Employees won’t stay if there isn’t a culture encouraging upward feedback. Modern retention requires moving beyond annual reviews to create continuous feedback loops.

Feedback Best Practices:

• Conduct consistent bi-annual formal reviews

• Provide continuous, real-time feedback throughout the year

• Create a personal experience that elicits employee feedback about the company

• Encourage upward feedback regularly

• Establish psychological safety for honest communication

The goal is to create an environment where feedback flows in all directions, driving both individual performance and organizational improvement.

Eight Pillars of People-First Culture

Based on successful implementations across the industry, eight key considerations form the foundation of an effective people-first culture:

• Policies & Procedures: Ensure HR practices are inclusive and encourage input from all generations. Create a culture of inclusion where diverse perspectives are valued and heard.

• Pairing & Mentoring: Structure cross-generational mentoring where each generation mentors others, building trust without creating burdens. Baby Boomers share deep experience while younger generations provide tech-savvy insights.

• Benefits: Offer benefits that meet multi-generational workforce needs. Consider providing each employee with a benefits budget and menu of options, allowing personalization based on life stage and priorities.

• Flexibility: Companies supporting remote work have 25% lower employee turnover. Flexibility benefits all generations, whether forwork-life balance, community involvement, family responsibilities, or personal interests.

• Learning & Development: Training empowers employees and makes them feel valued. In multi-generational workforces, tailor development approaches: technology training for Baby Boomers, career advancement for Gen X, and
  ongoing learning opportunities for Millennials and Gen Z.

• Community: Social activities and community engagement create relatively easy, low-cost retention wins. Engaged employees become loyal employees. Allow employees to lead and plan these activities to increase ownership and participation.

• Feedback & Recognition: Build a recognition culture that provides high ROI in performance and retention. Make recognition continuous rather than annual, and ensure it aligns with your core values and individual preferences.

• Compensation: While compensation importance varies by generation, it remains a retention factor for everyone. Ensure competitive compensation that reflects market rates and individual contributions.

Learning from Industry Leaders

The recent “Beyond the Boardroom” episode featuring Greg Horejs of CAGE Engineering, Roseann Schmid of Fisher Associates, and Ryan Schmitt of Petticoat-Schmitt Civil Contractors demonstrates how these principles work in practice. These leaders have discovered that when you prioritize people authentically—not as a strategy but as a core value—business results follow naturally. Their experience reveals several key insights:

• Culture as Competitive Advantage: In a commoditized industry, culture becomes the primary differentiator. Clients increasingly choose firms not just for technical capability, but for the teams they’ll work with.

• Growth through People: When employees feel valued and see clear paths for development, they become natural ambassadors for growth. They refer quality candidates, deliver exceptional client service, and drive innovation.

• Retention as Risk Management: The cost of replacing a highly-trained employee can exceed 200% of their annual salary. Investing in retention is more than just employee satisfaction—it’s also about business sustainability.

Implementing Your People-First Culture

Creating a people-first culture that drives retention requires intentional action. Start with these steps:

• Assess Your Current State: Survey your workforce to understand what matters most to each generation in your firm. Use this data to prioritize improvements.

• Map Your Employee Experience: Document every touchpoint, from first contact through departure. Identify friction points and opportunities for enhancement.

• Start with Onboarding: This high-impact area provides immediate returns and sets the tone for the entire employee relationship.

• Build Recognition Systems: Implement both formal and informal recognition programs that celebrate achievements aligned with your values.

• Invest in Development: Create clear career paths and provide resources for growth. Remember that development is an ongoing process, not a destination.

• Measure and Adjust: Track retention metrics, employee satisfaction scores, and engagement levels. Use this data to continuously refine your approach.

The Bottom Line

To win the talent war, you must design your employee experience as thoughtfully as you design your client experience. The most successful firms understand that putting people first is more than just being nice, it’s also about creating sustainable competitive advantage through engaged, loyal employees who drive business results.

The choice is clear: you can continue treating retention as an HR problem, or you can embrace it as a strategic opportunity to build a thriving, profitable firm. The companies getting this right are retaining talent, but they’re also attracting the best people in the industry and setting themselves up for long-term success.

Remember, in today’s market, your culture is your strategy. Make it people-first focused and watch both retention and results soar.

For more insights on building people-first cultures, listen to the “Beyond the Boardroom” podcast episode “Building a People-First Culture That Drives Results” available at [elevate.buzzsprout.com](https://elevate.buzzsprout.com/2445778/episodes/16732919-building-a-people-first-culture-that-drives-results)