Recently, Zubas Flett Liberatore Law Lawyer, Jordan Bailey, was featured in an Ontario Municipal Human Resources Association’s (OMHRA) Insights post. The article, which discussed workplace culture and employee retention, is available to read here and below.
Culture and Retention: The Balancing Act for Modern Employers
When discussing workplace culture and employee retention, many organizations treat the two concepts as separate entities. However, according to HR consultant Shari Angle, culture and retention are deeply intertwined. “It’s a bit of a chicken and the egg situation where one influences the other,” she says. Ms. Angle would know. After 20 years in the industry, she has advised many organizations and helped implement countless HR policies. In reality, building a strong culture doesn’t just help retention; it creates an environment where people want to stay. Yet, there are challenges to both, especially for leadership.
Culture starts with employers, who set the stage for how things are done. Whether it’s values, beliefs, or practices, a company’s culture influences every aspect of its operations. However, for many organizations, the biggest challenge Ms. Angle encounters is leadership buy-in. “If the CEO doesn’t care, it’s hard for anyone else to,” she explains.
Trust is equally critical. Gaining employees’ trust is difficult, especially if initiatives are seen as superficial. Ms. Angle emphasizes that cultural change must be genuine and lasting. Without employee engagement, nothing will change. For instance, she recalls a client whose culture improved significantly when leaders engaged employees in transparent conversations about the organization’s values.
Retention metrics are often a priority for employers, but Ms. Angle suggests engagement is a better indicator of cultural health. “Retention isn’t always a good thing. Keeping toxic employees can do more harm than good,” she says. Sometimes, terminating underperforming employees can help workplace culture and retention.
Terminating for Cause
Terminating underperforming employees is no easy task, particularly when alleging cause for poor performance. The case of Bott v Shaw Cablesystems, 2019 CarswellNat 3038 illustrates the challenges of terminating for cause without a structured plan. However, it isn’t impossible. Shaw followed every necessary step, including verbal and written warnings, unpaid suspensions, and frequent discussions about expectations. Without these actions, terminating for cause would have been nearly impossible.
As adjudicator Gunn noted at paragraph 111:
“The conclusion I have reached might have been very different had Shaw not communicated their expectations… or fired him in a peremptory manner, without using the progressive discipline steps.”
This case underscores the importance of a detailed, progressive discipline plan when addressing poor performance. On the other hand, the case of Phanlouvong v. Northfield Metal Products (1994) Ltd. et al, 2014 ONSC 6585 highlights the challenges an employer can face when attempting to terminate for cause and improve workplace culture. Even after an employee punched another in the face, the employer was unable to terminate them for cause.
Organization Values
One key to retaining engaged employees is aligning organizational culture with business goals. “Values are easy to follow when things are going well, but they are tested when times get tough,” Ms. Angle notes. A company might have conflicting priorities between profit and safety, for example. It’s during these moments that true organizational culture is revealed.
Ms. Angle advises leaders to clearly define core values and norms. Many companies mistakenly assume that culture is about giving employees what they want, but it’s more about setting clear expectations. Transparency, accountability, and open communication are essential to building a cohesive culture.
Feedback is one of the most powerful tools for retaining talent. However, it must be done correctly. “If you’re not going to act on feedback, don’t bother collecting it,” Ms. Angle warns. Formal methods like pulse checks and surveys are valuable but must lead to actionable changes.
In the modern workplace, encouraging feedback in hybrid or remote environments is challenging. Ms. Angle suggests that leadership should create informal spaces for interactions. For example, a CEO who spent more time in common areas gained invaluable insights that ultimately improved retention.
While salary matters, Ms. Angle stresses that non-compensation incentives play a significant role in retaining top performers. “Think of the emotional paycheck,” she says, referring to non-monetary benefits like recognition, flexibility, and purpose. These factors often outweigh higher pay in keeping employees engaged.
As the workplace evolves, so must approaches to culture and retention. Ms. Angle notes that more organizations are focusing on deeply defining their values. High-level concepts like “trust” need detailed explanations that employees can relate to and implement in their daily work. Misalignment between culture and individual experiences can create friction. As Ms. Angle puts it, “It’s worse to say it and not do it than not say it in the first place.”
If you have any questions or inquiries regarding workplace culture or employee retention, contact Zubas Flett Liberatore Law at 416-593-5844 or questions@employment-lawyers.ca