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The Underestimated Costs of Poor Culture

The Cost of Poor Culture
Written by
Teelke Gerhard
Published on
28.03.2026

“Bad vibes in the team? That’ll cost you more than any pay raise.”

We talk a lot about strategies—about growth targets, KPIs, performance, and productivity. But hardly anyone talks about what really determines, in day-to-day life, whether people are performing at their best—or have already mentally checked out: the culture that’s actually lived out.

And no—we’re not talking about the summer party or the slogan on the intranet. We’re asking: How do you communicate, lead, listen, and show appreciation? Because a poor company culture comes at a cost. And that cost is high.

The Bottom Line: The True Cost of a Poor Work Culture

  • Sick days: According to DAK, mental health issues are one of the most common reasons for absenteeism. Many of these cases don’t start with a cough—but with a toxic work environment.
  • Employee turnover: According to a StepStone study, over 60% of employees quit because they feel undervalued. Not because of their salary. Not because of their job responsibilities.
  • Loss of productivity: When people don't feel safe, they don't speak up about problems, stick to the minimum required—or withdraw completely.
  • Reputational risks: A negative atmosphere spreads quickly. Job applicants can immediately tell whether a company’s culture is actually practiced or merely claimed. And they make their decisions accordingly.

You can't always tell if a company has a poor culture at first glance

But you notice when she's not there:

  • When people talk a lot in meetings but say very little.
  • When managers give feedback without listening.
  • When benefits are offered, but trust is lacking.
  • When sick leave is on the rise—but no one is talking about why.

The good news: Culture can be shaped

And those who stop treating it as a soft topic and start treating it as a key factor for success will be rewarded with exactly what everyone is looking for: loyalty, performance, and trust.

That’s exactly where we at FAKTOR MENSCH come FAKTOR MENSCH

We help companies make health a part of their culture—not just a policy. Through employer-sponsored health insurance that’s truly put into practice. Through health initiatives that work because they’re embedded in leadership. And through communication that doesn’t just look good—it makes a difference.