3 reasons why culture is a competitive advantage
From breakthrough innovation to talent retention, centering fairness and belonging in the workplace drives measurable results. Companies that prioritize an inclusive workplace culture are better prepared for the future, with more growth, resilience, and long-term success than their competitors.
As Giavonni Lucas, SVP of Culture and Talent Acquisition at Nationwide, noted during the 2025 Catalyst Awards: “Workplace community breeds connectivity, engagement, passion, and energy. It’s a business imperative.”
How exactly does this set companies apart in the marketplace — making them the most compelling choice for their customers, employees, and future talent? Here are three ways an inclusive culture translates into a concrete business advantage:
1. Diverse perspectives fuel innovation.
Customers come from a diverse range of backgrounds and experiences — and teams that reflect their customer base are better equipped to provide authentic solutions to the communities they serve.
By creating an inclusive culture that values employees for who they are, organizations foster the psychological safety necessary for employees to take risks and make mistakes without worrying about negative repercussions. This unlocks fresh perspectives that lead to new market opportunities, helping organizations anticipate customer needs today and into the future.
2. Belonging increases talent attraction, retention, and engagement.
Catalyst research shows that 93% of employees think companies should be vocal about their inclusion efforts. Employees want to work for organizations that give back to their communities, making culture a key differentiator in talent attraction. This is particularly true for Gen Z, who value workplace cultures that give them a seat at the table, prioritize community support, and present opportunities for growth.
Employees are more likely to be engaged in their work when they feel included and respected among their colleagues. Employee resource groups (ERGs) are one of the best tools available to foster community, collaboration, and problem-solving. ERGs make companies stronger and more dynamic by sparking new ideas and elevating perspectives that might otherwise be overlooked. They also support talent retention and engagement.
According to Lucas, employees who participate in Nationwide’s associate resource groups are:
50% less likely to leave.
2x as likely to be promoted.
Lucas notes: “In a competitive talent landscape, the infusion of inclusion within the culture influences and shapes the talent strategy.”
3. Adaptability is key to thriving through external challenges and evolving markets.
With five generations in the workforce and AI reshaping industries, it’s essential for companies to embrace flexibility and continuous learning as they prepare for shifting paradigms and potential business changes.
Different skill sets will be necessary for the future — and a curious and open-minded workplace can give employees the tools they need to upskill. Employees who feel seen, heard, and valued are more resilient in times of change. And in an era where consumers increasingly hold brands accountable, a strong culture isn’t just internal — it’s a reputation driver.
Want more ideas to unlock new levels of productivity and prepare your organization for what’s next? Discover how the 2025 Catalyst Award-winning initiatives are strengthening their organizations and creating workplaces that work for everyone.