Everything Between Culture, Employee Engagement, & Why Talent Stays (or Walks Away)

By: Jessica Wan & Kivilcim Disli

For decades, organisations have worked under a powerful assumption: culture is the glue that binds people to a company. Build the right culture, and employees will stay. Nurture loyalty, and performance will follow.

Yet today, despite substantial investments in culture, employee engagement is declining, attrition is rising, and loyalty is fragile. Companies across the UK, Europe, and increasingly those expanding into APAC markets, are finding that even with flexible benefits, well-being programmes, and competitive compensation, their best talent is walking away.

This paradox raises an urgent question: if culture truly builds loyalty, why is it not enough to retain employees anymore, especially in competitive global talent hubs like Singapore, Bangalore, and Hong Kong?

The answer lies in a hidden disconnect: many organisations treat culture as something abstract, defined in values, policies, and leadership messages, while ignoring the very environment where culture is meant to be experienced every day: the workplace.

The cultural disconnect: when words don’t match reality

A company may define itself as collaborative, innovative, or people-first. But if employees walk into offices that contradict these values, the culture begins to feel performative rather than authentic.

• “We’re a collaborative company.” → But the design of the space enforces silos.
• “We encourage innovation.” → But the workplace is sterile and rigid.
• “We promote flexibility.” → But the environment supports only one way of working.

These contradictions matter. Employees experience culture not in values documents or townhalls, but in the everyday signals they receive from their environment.

For businesses looking to expand into APAC, this disconnect is magnified. Diverse talent pools across Asia bring different cultural expectations of collaboration, hierarchy, and flexibility. Without designing workplaces that align with those expectations, global companies risk losing the very talent they worked hard to attract.

The business equation that often goes unaccounted for

Too often, leaders think of the workplace as a cost centre or a backdrop to “real” culture work. But in reality, the physical environment is a strategic lever that links brand, culture, and people into what can be called:

Workplace DNA = Brand + Culture + People

When these three elements align:

• Culture is lived, not just written.
• Employees feel engaged, empowered, and connected.
• Business outcomes, from innovation to profitability, accelerate.

When they don’t, even the best HR strategies and leadership intentions will fall short, whether in London, Berlin, or a new APAC headquarters.

The true ROI of a culturally aligned workplace design

Global research shows a clear link between culturally aligned workplaces and measurable business results:

• Engagement: Employees in culturally aligned workplaces are 16x more engaged than those in misaligned environments (McKinsey).
• Turnover: Supportive workplace design can reduce attrition by up to 59%, particularly among high performers (Gallup).
• Profitability: Top-quartile teams with positive workplace experiences deliver 23% higher profit, driven by output and morale (Gallup).
• Innovation & Agility: Organisations with flexible, experience-driven spaces report a 28% increase in innovation velocity and faster decision-making (MIT).

For companies planning APAC expansion, these outcomes are crucial. High-growth Asian markets often see intense competition for top talent, making workplace design and cultural alignment a competitive differentiator.

The invisible signals that shape people's behaviour and performance

Culture is often defined as “how we do things here.” But the workplace subtly shapes those behaviours through unseen signals that either amplify or undermine culture:

• Belonging → Shapes psychological safety and inclusion → Drives retention and collaboration
• Creative Enablement → Shapes idea flow and experimentation → Drives faster problem-solving and innovation
• Spontaneity & Serendipity → Shapes informal connections → Sparks innovation from chance encounters
• Human Connection → Shapes trust and empathy → Reduces burnout and increases accountability
• Autonomy & Choice → Shapes flexibility and ownership → Boosts productivity and engagement
• Brand Storytelling in Space → Shapes pride and alignment → Strengthens attraction and cultural buy-in

When workplaces neglect these elements, the absence is felt: disengagement rises, participation falls, and “quiet quitting” becomes visible. For a global business opening a new office in Singapore, Bangalore, or Shanghai, the stakes are even higher: the wrong cultural signals can undermine brand trust from day one.

Why one-size-fits-all workplace design model fails

Every company has a unique cultural blueprint. Some thrive in structured, hierarchical environments. Others depend on community-driven, fluid ecosystems.

Designing workplaces with a “universal model” is one of the most common and costly mistakes leaders make. Even with good intentions, the wrong environment can create friction, fatigue, and attrition.

• A start-up that values agility but operates from rigid, cubicle-heavy offices will stifle its own culture.
• A financial services firm that depends on focus and confidentiality may lose efficiency in overly open, “trendy” layouts.
• A global organisation expanding into APAC without adapting to local workstyles may alienate employees who value very different cultural cues.

The key is designing with cultural intent. Leaders must ask:

• What behaviours and interactions are core to our culture?
• How do our teams ideate, collaborate, and recharge?
• What kind of environment reinforces our dominant personality traits as an organisation, both locally and globally?

A strategic imperative for employee engagement

In the hybrid era, the workplace is no longer just real estate; it is a strategic system that reinforces or erodes everything an organisation is trying to build.

Three shifts make workplace culture alignment a global imperative, especially for firms scaling in growing markets:

1. Hybrid Work as the Norm: Employees expect flexibility, choice, and autonomy. Workplaces must be adaptable, not fixed.
2. Evolving Talent Expectations: Gen Z and millennial talent across Europe and Asia place a premium on purpose, inclusion, and belonging. Workplaces must embody these values.
3. Competition for High Performers: In high-growth APAC cities like Singapore and Bangalore, culture is a differentiator—and the workplace is where culture becomes tangible.

Leaders who ignore this risk not only face higher attrition but also cultural erosion that is far harder to rebuild.

From words to everyday experiences: making culture tangible

Policies and posters may articulate culture, but the everyday environment makes it real. The spaces where employees brainstorm, collaborate, rest, or celebrate are the stage where values are enacted.

When designed intentionally, the workplace becomes:

• A catalyst for performance, not a backdrop.
• A magnet for talent, not just a cost.
• A living embodiment of brand and culture, not just an office.

Because if culture truly builds loyalty, the workplace must become its most powerful expression, whether in London, Frankfurt, or a new head office in Singapore.

Something for leaders to think about

Before planning the next office move, renovation, or Asia-Pacific expansion, leaders should reflect:

• Does our space reflect who we are today, or who we used to be?
• Are we measuring how the workplace impacts engagement, retention, and innovation?
• What silent signals is our environment sending, and are they aligned with our intent?
• What would it take to transform our workplace from a cost centre to a culture amplifier?

In conclusion

Culture has always been an organisation’s most powerful advantage. But in today’s climate of rapid change, distributed work, and global expansion, culture alone is no longer enough.

It must be experienced.

The workplace is where values move from aspiration to reality, where belonging becomes tangible, and where innovation is sparked through human connection.

If culture truly builds loyalty, it’s time for leaders to ensure the workplace doesn’t sabotage it. Instead, it should be designed as a living system that embodies brand, amplifies culture, and empowers people across every market, from Europe to APAC.

Because in the end, your culture is visible. Now, make it tangible.

Meet the authors: