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Research shows that a strong workplace culture can drastically boost job satisfaction—up to 790%, according to SHRM. But what actually creates a top-tier culture today?
The answer may lie in understanding People & Culture vs. traditional HR approaches.
Traditionally, HR has been an administrative department that handles payroll, safety and workplace conflict. Yet as employee expectations evolve – and talent competition becomes fiercer – companies are shifting toward a more human-centric approach called People & Culture.
People & Culture is a modern method that places the employee experience front and center. As a result, this method can elevate engagement, well-being and productivity. Ultimately, it can even increase profitability by 23%!
Here we’ll explore the four main reasons why companies are setting aside traditional HR and embracing the People & Culture mindset – and why your business should, too!
1. From Reactive to Proactive: How People & Culture Drives Engagement
Employee engagement worldwide shrunk to 21% in 2024, showcasing the dire need for HR transformation to modernize tactics. In particular, there’s a large gap in outcomes between People & Culture vs. traditional HR approaches.
Traditional HR is typically designed as an administrative center for payroll, compliance and policy. It’s also on the frontlines of resolving staff questions and conflicts. In other words, it’s reactive according to the issues that arise at the company.
A People & Culture approach flips this concept on its head. It’s focused on cultivating company culture and proactively giving staff access to resources, programs, activities and more. As the name suggests, People & Culture is human-centric, anticipating team members’ needs and preferences.
The Benefits of People & Culture vs. Traditional HR
As a proactive approach, People & Culture is also significantly more effective. Just consider that companies that cultivate a strong culture see up to 72% higher employee engagement.
What’s more, according to Gallup, more engaged employees leads to a wealth of key advantages (see above!). The most impressive include reduced absenteeism and turnover, as well as boosted productivity and profitability. Bottom line: people-first HR is good for business.
How Google Uses People & Culture to Foster Innovation
Google is often a go-to example of modern People & Culture teams in practice. It’s known for its proactive employee experiences, which include pet-friendly offices, mental health support, gourmet meals and much more. It’s especially supportive of learning opportunities, enabling 20% of company time for employees to pursue side projects.
“Google [has] invested more in employee support and employee satisfaction has risen as a result. For Google, it rose by 37%; they know what they are talking about. Under scientifically controlled conditions, making workers happier really pays off,” says one research team.
2. People & Culture Prioritizes Employee Experience Over Bureaucracy
When employees are engaged and feel valued, they’re more likely to do their best work. People & Culture is focused on creating that human-first atmosphere. That’s why 58% of HR managers are focusing on improving the employee experience to attract and retain top talent.
This is a significant shift in human resources evolution, as traditional HR is primarily administrative.
Some ways that People & Culture does this is by fostering fair, meaningful, learning-rich and people-oriented employee experiences. (Think of the sort of culture that gets your business listed on the Best Companies to Work For!)
The Power of Employee Experiences
Organizations that incorporate People & Culture vs. traditional HR tend to build unique employee experiences based on key company values. For example, SHRM reports that businesses that integrate people operations achieve higher rated company culture outcomes:
- High equity: 19x more likely to rate culture good or excellent.
- Career fulfillment: 12x more likely to rate culture good or excellent.
- Respect: 11x more likely to rate culture good or excellent.
- Work/life integration: 10x more likely to rate culture good or excellent.
- Strong communication: 7x more likely to rate culture good or excellent.
Overall, People & Culture teams create positive employee experiences through DEIB, wellness programs, continuous learning opportunities and more, depending on the company’s priorities. It’s also highly dynamic, with people managers using feedback and analytics to determine the best next steps.
Hilton’s People-First Culture Earns #1 Workplace Spot
Hilton was named the #1 Place to Work in 2025 due to its outstanding employee experiences. This is especially impressive given the high turnover rate in the hospitality industry. How does Hilton do it?
Hilton focuses on four main pillars of people-first HR – purpose, growth, wellness and inclusion – to ensure employees are fully satisfied. “We are trying to create a workplace that allows someone to be their whole self, to enjoy a fully human experience at work,” says Sally Schiff, VP of Communications.
3. Stronger Employee Retention & Talent Attraction With People & Culture
Top five reasons why employees plan to leave their jobs
- Inadequate pay (58%)
- Insufficient career growth opportunities (36%)
- Poor management (29%)
- Insufficient learning and professional development opportunities (29%)
- Unfair treatment (28%)
(Source: SHRM)
The #1 HR priority in 2024 was enhancing EVP (Employer Value Proposition) to attract and retain top talent. The focus on culture is a major way that People & Culture achieves retention. After all, 58% of employees report company culture is more important than salary. Plus, 64% would leave their jobs if the culture wasn’t a good fit.
Top Retention of Modern HR vs. Traditional HR
In fact, experts from SHRM report that “research shows that four of the top five reasons employees leave their employer globally are tied to workplace culture.” Specifically, People & Culture can help drive:
- Meaningful work. Companies with purpose-driven missions make employees 27% more likely to stay at their jobs.
- Learning opportunities. 67% of employees say opportunities to learn new skills would have a major influence on staying at their jobs.
- Career trajectory. 94% of employees would stay at a company longer if it invested in their careers.
Ultimately, businesses can boost recruitment and retention by elevating their EVP. Often adopting a people-first culture goes a long way toward increasing EVP. At the same time, it prevents “culture quitting” from your best talent who otherwise would stay at your company.
Netflix’s Radical Autonomy: A Winning EVP Strategy
Netflix has created a unique EVP based on radical autonomy for their staff. "You get better outcomes when employees have the information and freedom to make decisions for themselves. We hire unusually responsible people who thrive on this openness and freedom,” states the Netflix Culture Memo.
Here employees have an ultra-flexible, trust-first work culture, including no micromanagement, no performance reviews, no expense spending approvals and unlimited vacation days. In turn, this company captures truly superb talent that enjoys the freedom and does great, independent work.
4. A Competitive Advantage in the Global Talent Market Via People & Culture
While People & Culture is ideal for boosting productivity, well-being and retention, it’s also tied to profit. Organizations with positive employee experiences are 1.3x more likely to report outperformance.
In essence, choosing People & Culture vs. traditional HR gives your business a serious competitive edge – not just for capturing top talent but for attaining product quality and revenue.
Yet, only 61% of employees worldwide rate their workplace culture as good or excellent. There’s a huge opportunity with people operations to attract excellent talent, improve business KPIs and stand out from the competition.
TECLA’s Culture-Centric Hiring Gives It a Global Edge
Navigating the global talent market can be challenging for businesses, especially when pursuing professionals in unfamiliar regions.
At TECLA, we unlock competitive advantages and cost savings by connecting you with elite talent in Latin America. Our screening and interviewing processes take a People & Culture approach.
As CEO and founder Gino Ferrand says “It's not just about [developers’] technical skills but also their soft skills, which can hint at how seamlessly they would fit within your team's culture.”
Learn more about TECLA team culture and how we achieve culture-driven hiring here!
The Future of Work Is People-Centered: Why It’s Time to Rethink HR
People & Culture by the Numbers
- Top company culture can boost job satisfaction by 790%.
- High employee engagement can increase profitability by 23%.
- Employee engagement worldwide decreased to 21% in 2024.
- Companies with strong culture attain up to 72% higher employee engagement.
- 58% of HR managers are focusing on improving employee experience to attract and retain talent.
- 58% of employees report company culture is more important than salary.
- Organizations with positive employee experiences are 1.3x more likely to report outperformance.
- Only 61% of employees worldwide rate their workplace culture as good or excellent.
People & Culture is the future of HR, enabling human-centric workplaces that enhance employee experience and achieve stronger talent outcomes across the board.
Whether you're scaling a startup or growing a global team, your success depends on people. That’s why TECLA takes a People & Culture-first approach—helping you find top developers who align with your mission and values. Get in touch with our talent specialists today to learn about our culturally aligned approach.
Let’s connect! If you're interested in sharing insights or collaborating on People & Culture trends, reach out to us for potential guest posts or expert quotes.
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