5 Signs Your Workplace Culture Is Costing You Staff

Most businesses don’t lose people because of a single bad day. They lose them slowly — through a mix of unclear expectations, poor communication and workplace behaviours that quietly wear people down.

When culture issues go unchecked, they affect more than morale. They increase turnover, expose your business to compliance risks, and make it harder to attract the right people in the first place.

Here are five signs your workplace culture might be driving staff out the door — and what you can do about it.

1. You're Getting the Work Done but Engagement is Flat

You’re meeting deadlines. The team is “functioning.” But there’s no energy, no input, and no sense of ownership.

Low engagement doesn’t always look loud. It often shows up as:

• Employees doing the bare minimum

• Reluctance to take initiative

• Little to no feedback or participation

• High rates of personal leave or quiet absenteeism

These are early signs that something deeper is missing and if left unaddressed, they usually lead to turnover.

2. Expectations are Unclear and Inconsistently Applied

When people aren’t sure what’s expected of them, or feel the rules change depending on who’s involved, frustration builds.

Common red flags:

• No documented position descriptions or KPIs

• Performance feedback only given when something’s wrong

• Inconsistencies in how behaviour is addressed between staff

Unclear expectations can quickly become a compliance issue — especially if they lead to claims of unfair treatment or procedural unfairness in performance management.

3. Microaggressions are Ignored or Downplayed

Toxic cultures aren’t always defined by yelling or bullying. Sometimes, it’s the low-level stuff that does the most damage — inappropriate jokes, dismissive comments, or casual exclusion.

When these behaviours go unchecked, they:

• Undermine psychological safety

• Breach workplace conduct policies

• Create the conditions for formal complaints

Left long enough, they can expose your business to serious risk under Fair Work, anti-discrimination and health and safety legislation.

4. Exit Interviews Tell a Consistent Story but Nothing Changes

If people are telling you why they’re leaving, and those reasons are recurring, that’s not a coincidence — it’s a pattern.

Whether it’s poor communication, lack of recognition or leadership issues, exit feedback is valuable data. If it’s not being captured, reviewed, or actioned, your business is missing an opportunity to improve retention and reduce disruption.

5. You’re Not Sure What Culture You’re Building

Culture isn’t just “vibe” — it’s the systems, behaviours, and unspoken norms that shape how people show up to work. If you haven’t intentionally defined what kind of culture you want to create, it’s likely being created for you and not always in a good way.

Signs of an undefined culture:

• Values on the wall, but not in the day-to-day

• Leaders unsure how to address team issues

• Staff feeling disengaged, siloed, or unsupported

Culture Isn’t Soft — it’s Structural

Strong culture isn’t built on slogans or socials. It’s built through structure: clear policies, consistent leadership and systems that support accountability, fairness, and communication.

If you’re noticing signs of disengagement or unspoken tension in your team, it’s worth taking a closer look.

Want to understand what your culture is really costing you?

[Book a confidential HR culture check-in] Contact us