Even a Raise Cannot Keep Them? Signs Your Company Culture Is Losing Its Warmth

Are companies still viewing waves of resignations as simply part of the market cycle? From our front-line experience in the talent market, we’ve observed that top performers begin contemplating their next move as early as October, long before annual bonuses are even paid.[1]

 

Two major trends, particularly evident in the Taiwanese job market, underscore why “salary alone cannot retain talent”:

Firstly, talent shortages, especially in engineering, semiconductors, B2B technical sales, and digital roles, leave companies with fewer hiring options. Secondly, employees prioritize cultural fit more than salary alone when evaluating whether to stay or leave.

The reality is that most talent departures are deeply connected to a faltering organizational culture. From a headhunter’s perspective, here are the most common and compelling signs that a company’s culture is actively pushing its best employees out:

1. Vague Organizational Direction

Year-end should be the time when companies establish their goals and roadmap for the coming year. Yet, many organizations remain paralyzed or indecisive. This manifests as projects that are paused and restarted, repeatedly shifting strategies, and departments operating without clear Key Performance Indicators (KPIs). For employees, this constant state of flux creates deep anxiety and instability. As many candidates told us this year: “We spent the whole year firefighting. I still don’t know where the company is heading.” A lack of direction is one of the strongest and earliest triggers for resignation.

2. High Performers are Penalized with Overload

A common phenomenon in Taiwan workplaces: Those who can execute end up doing more, while those who cannot enjoy comfort and stability. High performers shoulder an ever-expanding workload, but has their compensation, promotion or recognition accelerating at the same pace?
To employers, high performers are capable, reliable, and the most stable group. But to headhunters, they are the most targetable group. When high performers realize external opportunities offer better benefits, flexibility, or career trajectory, they are very likely to explore a move.

3. Inappropriate Management Practices

As the external environment rapidly evolves, internal organizational turbulence also increases. Cross-department collaboration becomes more complex, information flows faster, and professional expectations for each role rise significantly, placing employees under immense pressure.
This pressure is amplified exponentially when employees encounter poor leadership. Managers who micromanage, constantly dictate without collaboration, make emotional decisions instead of following proper processes, or demand strong results without providing necessary resources inevitably breed frustration and helplessness. This is a direct accelerator of voluntary turnover.

4. Unclear Promotion and Development Pathways

In many local companies and SMEs, promotions are often influenced by relationships, managerial preference, or departmental luck. However, research shows that employees care most about “work added value.” This includes learning new skills, gaining access to important projects, and building experiences that enhance their long-term career development. When employees cannot see opportunities for growth, proactive and ambitious talent will naturally seek platforms where they can realize their personal value.

5. Low Efficiency Across Teams

A friendly team culture and harmonious coworker relationships do not necessarily equate to organizational effectiveness. When meetings are frequent but decisions are rare, or when departments avoid accountability and shift responsibilities, the company loses momentum. Ambitious, driven employees dread stagnation the most, investing time and energy only to see little or no progress.

Reigniting and Elevating Company Culture

When top talent can no longer see direction, growth, or trust within the organization, their commitment begins to waver. Top talent is never short of options, they are seeking a company culture that aligns with their values, pace, and expectations.
To retain top performers, companies can start with the following actions:

• Clarify organizational direction and goals: Clear strategies and structured projects help employees understand where their efforts are leading.
• Provide fair and transparent promotion and development opportunities: Establish clear standards so that performance and growth can be recognized.
• Improve managerial practices and reduce micromanagement: Give employees autonomy and the necessary resources to focus on creating value.
• Balance warmth with efficiency: Maintain a supportive team environment while ensuring effective execution, so that effort translates into tangible results.

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A strong and healthy company culture encourages talent to stay; a clear direction empowers teams to move forward. If the goal is to retain top talent, it must begin with the organization’s culture.

 

[1] The Lunar New Year Bonus, a fixed payout often equal to 1-2 months’ salary, is typically issued before the holiday. This guaranteed annual payment frequently causes a wave of employee turnover shortly afterward, as many staff wait to collect it before resigning.

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