At LegalPay, we take culture and value systems into account just like any other important aspect like establishing strong product-market fit or securing funding.
Culture is a Necessity, Not a Luxury
In the early days of Netflix, when the company was still figuring out its identity. CEO Reed Hastings made a bold decision—he scrapped the company’s formal vacation policy. Employees could take as much time off as they wanted, as long as their work got done. It was a radical move, but it wasn’t about vacations. It was about trust.
Many early-stage founders put workplace culture on the backseat.
The common belief is that culture-building is a luxury—something to focus on only after achieving a certain scale or stability. According to me, this mindset couldn’t be further from the truth. With fewer layers of hierarchy and a tighter-knit team, every individual’s contribution is amplified.
Workplace culture isn’t just about office perks or motivational speeches; it’s the mind design that shapes how employees collaborate, innovate, and contribute to long-term business success. The most resilient and high-performing companies recognize that culture isn’t a ‘nice-to-have’—it’s a strategic advantage.
Companies that treat culture as an afterthought risk higher employee churn, disengagement, and misalignment with their business objectives. On the other hand, those that actively build a strong culture early on benefit from higher productivity, better retention, and a workforce that is deeply invested in the company’s mission.
It’s time to shift the perspective: Culture isn’t a distraction from growth—it’s a driving force behind it.
The Tangible Impact on Business
If culture is the invisible force that drives success, then its impact should be visible where it matters most—on the bottom line.
Strong workplace culture isn’t just about fostering a "feel-good" environment; it directly influences key business metrics that determine long-term viability.
1. Employee Engagement and Productivity
A team that feels valued, aligned, and motivated doesn’t just work harder—it works smarter. Employee happiness isn’t measured by attendance alone; it’s reflected in their productivity, efficiency, and sense of ownership. People perform at their best when they enjoy where they work. A strong, positive culture ensures that the same amount of work gets done faster and with better results compared to a disengaged workforce.
2. Talent Retention
Employees stay longer in companies known for strong workplace environments, reducing hiring costs and maintaining institutional knowledge—a crucial advantage for small organizations that can’t afford constant turnover.
3. Innovation and Agility
Companies with a collaborative and open culture naturally outperform rigid, hierarchical workplaces. When employees feel psychologically safe to voice ideas, challenge norms, and take ownership, innovation flourishes. Startups and small businesses, in particular, thrive when adaptability is part of the DNA.
4. Brand Reputation and Business Growth
Your employees are your biggest brand ambassadors. The way a company treats its team members inevitably shapes its external reputation. A workplace with a positive culture doesn’t just create happy employees—it builds a brand that customers, investors, and partners want to associate with. On the flip side, a toxic work environment can lead to high attrition and negative press, damaging business prospects in the long run.
Culture isn’t just about what happens inside the office; it extends beyond, influencing how the world perceives your company. And with Gen Z entering the workforce in full force, their expectations are reshaping workplace culture in ways that can’t be ignored.
The Gen Z Influence Redefining The Workplace Culture
Before this generation many of whom grew up in post-independence India—had one primary goal: financial stability. Job security, a steady income, and ultimately survival were their top priorities. They built the foundation that allows their children, Gen Z, to think beyond these basic needs. That’s why now this new GenZ workforce is focused on purpose, flexibility, and well-being.
And it’s always not about the perks,
A few years ago, Google introduced eco-friendly commuting perks, encouraging employees to use sustainable transport like bicycles. While some of their offices provided bike racks and showers, others offered subsidies for public transit. This is an example of what Gen Z seeks in workplaces today. Where the goal wasn’t just about convenience—it reflected a deeper cultural value by not just talking about being environmentally conscious; it integrated those values into the daily work experience.
At LegalPay, for instance, we take a structured yet flexible approach to work-life balance. One practical measure we implement is setting clear expectations: when the day-end huddle happens, we expect work to be completed. There’s no pressure to stay back unnecessarily, and employees are encouraged to wrap up efficiently. This simple framework not only promotes accountability and efficiency but also gives employees the reassurance that their time is respected—allowing them to spend evenings with family, unwind, and return the next day refreshed.
Gen Z doesn’t just work only for a paycheck, they seek workplaces that align with their beliefs and companies where values aren’t just words on a website but are reflected in everyday actions and respect for their well-being.
Unlike large corporations, smaller companies have the agility to mold their culture faster and more effectively, making it a key differentiator in securing and sustaining high-performing teams and then you will start seeing -
The Magnet Effect
When a company’s culture is strong, aligned, and visible, the best professionals naturally gravitate toward it. Because great talent isn’t just recruited—it’s drawn in. This is what we call the Magnet Effect.
There are many ways to build a reputation as a great workplace—like posting videos of team outings and
dinners on social media. And while these certainly help, they can also be staged. In today’s hyper-connected world, applicants can easily reach out to employees via social media to get the real story.
That’s why genuine culture speaks louder than curated content. When an employee feels valued, challenged, and respected become organic brand ambassadors, sharing their experiences on LinkedIn, in industry circles, and through word of mouth. And in an era where peer reviews influence career decisions as much as Glassdoor ratings, that reputation becomes a hiring superpower.
At LegalPay, we’ve seen this first-hand. By ensuring that employees feel a sense of ownership, autonomy, and purpose, we don’t just retain talent—we attract performers who want to be part of an organization where culture and business objectives are seamlessly aligned.
Challenges Along the Way
Balancing Speed and Culture
When we started out, we had multiple products in development, each requiring rapid execution. In the early days of any startup, the focus is on getting a product to market as fast as possible. That means long hours and fast hiring. But what happens to culture in the middle of all this?
The key lesson we’ve learned is that it’s not an either-or choice. You can’t decide to focus on product one day and culture the next—it has to be built alongside everything else.
This is exactly why Peter Drucker’s famous words — “Culture eats strategy for breakfast” remain relevant today.
A brilliant product and aggressive growth strategy may get a company off the ground, but without a strong culture, long-term success remains elusive.
Accountability at the Right Level
Many companies place the burden of cultural fit and performance on junior employees, but we believe real accountability starts at the top. We hold our managers responsible for ensuring that culture is upheld. It’s easy to point fingers at junior team members, but the real question is—are managers doing all aspects of their job well? That includes leading by example, fostering inclusivity, and ensuring the team stays aligned with the company's values.
Conclusion: Culture is Not Optional—It’s a Strategic Imperative
For small organizations and startups, culture isn’t a luxury that can wait until after scaling—it’s the foundation that enables sustainable growth. While large corporations have the advantage of legacy and structure, smaller businesses have something even more powerful - agility. They can shape their culture in real-time, embedding it into their operations before bad habits and inefficiencies take root.
For startups, the reality is clear: Culture isn’t a ‘best practice’—it’s becoming a necessity. Small businesses that prioritize it early will not only retain top talent but will also build workplaces where employees are genuinely invested in the company’s success. And that, in turn, fuels long-term business outcomes.