Why Culture Overlooked Is Undermining Retention in India, Australia & New Zealand
What’s truly at the root of retention challenges?
I’ve sat in too many boardrooms where “talent retention” shoots to the top of the agenda—and culture barely registers as a strategic lever. Yet the latest global executive survey confirms what I see every day in the India, Australia, and New Zealand markets: leaders rank retention and wellbeing as top concerns—but company culture sits at the bottom of their priority list.1 That disconnect is not just ironic—it’s operationally dangerous.
India: Culture is the deal‑breaker
In India, the retention risk is startling. A recent survey found that six in ten employees are considering a job switch within a year—and for 87%, workplace culture is a central criterion when choosing an employer. What’s more, 70% of those already thinking about leaving expect to make that move within 12 months.2 As someone who regularly briefs candidates and advises clients, these numbers translate into urgency. Clients who underinvest in culture—and overinvest in superficial perks—are sitting on a simmering retention crisis.
Australia & New Zealand: Career growth and pay misalignment are becoming culture proxies
Across Australia and New Zealand, I’m seeing a different, but related, pattern. The Hays Salary Guide FY26/27 reveals that while job security feels strong (66%) and overall satisfaction is decent (59%), nearly half of professionals feel underpaid—and only a fraction see clear paths for promotion.3 Meanwhile, research from People2People indicates that in Australia, limited career opportunities now outpace pay as the leading cause of turnover—37% of candidates and 42% of employers agree.4 This signals something important: culture isn’t a fluff term—it shows up in whether people see growth, fairness, and career alignment.
Retention strategies are shifting—but gaps remain
Robert Half’s research from Australia makes it clear that reactive counteroffers are still widely used—but their value is limited. Although 85% of employers extend counteroffers, only 46% of those employees are retained, and 32% leave within a year anyway. More importantly, 41% of organisations say proactive strategies—career development, engagement initiatives—are more effective at stopping resignations before they happen.5 That squares with what I recommend: career mapping, manager training, and recognition frameworks outperform emergency salary dumps every time.
Culture is tangible—and evolving
- WorkInstitute’s 2026 Retention Report shows that “organizational culture” and “co-worker dynamics” are rising causes of resignation, especially as teams reconfigure post-pandemic. It’s cultural friction—not bad pay—that’s driving more friction in day-to-day work.6
- Great Place To Work’s Workplace Culture Outlook 2026 for India underscores that culture built on trust, clarity, recognition and inclusion is what sets high-performing organisations apart. Not AI, not tech—but day-to-day human experience.7
What I tell clients
When working with clients, I insist they treat culture like a co‑invested asset, not a compliance checkbox. For example, embed trust-building practices in leadership training, reinforce recognition in manager scores, map career paths, and build clarity around performance—not just pay. In markets like India, investing here is a retention safety net. Clients that lean into culture aren’t just keeping candidates longer—they’re unlocking sustainable performance.
What I tell candidates
I tell candidates: don’t underestimate the cultural clues in your next opportunity. If pay is competitive but you see low transparency, no real recognition, or vague progression talk—you’re lining up for frustration. Ask about manager behaviour, examples of inclusion, and daily routines—not just salary bands.
Final takeaway
Retention is a leadership initiative. But without culture, it’s hollow. Whether it’s Gen Z professionals in India alarmed by misaligned values, or early‑career people in Australia and New Zealand restless over unclear paths, the story is the same: culture — manifest in trust, growth, clarity, inclusion — is what makes retention real. Clients who get that stand out. Candidates sense that immediately, too.
