Introduction
In today’s rapidly evolving business landscape, the difference between a thriving organisation and one that struggles often comes down to a single factor: culture. Quest Consulting operates with the mission of transforming workplaces by improving people and performance, moving beyond traditional, reactive HR to help businesses build a culture dividend that drives engagement and profitability.
Research shows that a strong people strategy can lead to 2.3 times higher cash flow per employee, yet many organisations, particularly small businesses, struggle with poor leadership or a lack of structured support. In this interview between our CEO and Founder, James Leavesley, and Sarah Birkenshaw, Founder at Quest Consulting, discusses the critical role of manager behaviour in shaping workplace atmosphere. The Founders also discuss how the partnership between Cultiv8tiv and Quest Consulting allows them to use market-leading diagnostic tools to enhance the employee journey.
From navigating the pressures of a post-COVID world to maintaining cultural integrity while scaling, Sarah shares insights into why trust and transparency remain the most impactful changes any leader can implement to ensure long-term business success.
1. James Leavesley: Quest’s mission is “transforming workplaces by improving people and performance.” How do you define “culture” internally, and how does that definition translate into the advice and support you give to clients?
Sarah Birkenshaw:
At Quest, we define culture as the collective values, beliefs, and behaviours that shape teams interact and operate.
This definition drives our approach in advising clients; we emphasize the importance of aligning their organisational values with everyday practices. The role of leadership in this context cannot be overstated. Leaders set the tone for the workplace culture, and their actions can either foster a positive environment or create a toxic atmosphere. According to a study by the Chartered Institute of Personnel and Development (CIPD), one in three employees in the UK reported that their manager negatively impacted their mental health and well-being. By fostering open communication and inclusivity, we help clients create a culture that supports their mission and enhances performance, ultimately leading to better employee engagement and retention.
2. James: Why do you believe a strong people strategy (or culture plan) is so critical for employee retention and organisational performance?
Sarah:
A robust people strategy is essential for employee retention and organisational performance because it fosters engagement, loyalty, and productivity. Research shows that companies with strong people strategies can achieve 2.3 times higher cash flow per employee. When employees feel valued and connected to the company’s mission, they are more likely to stay; the CIPD reports that poor management is a leading cause of employee turnover, with 50% of employees citing poor leadership as a reason for leaving. This alignment not only reduces turnover costs but also drives overall business success through improved morale and collaboration. Leaders who prioritise their people strategy can create an environment that not only retains talent but also maximises performance.
3. James: Much of Quest’s value proposition rests on being a “proactive partner” rather than offering a “one-size-fits-all” HR service. In your experience, how does culture (or lack of it) influence whether a bespoke HR approach succeeds or fails?
Sarah:
In my experience, a strong culture significantly influences the success of a bespoke HR approach. Companies with a clear cultural identity can better tailor HR practices to fit their unique needs. Conversely, a lack of culture can lead to confusion and resistance, making it difficult for tailored solutions to take root. The success of these initiatives hinges on understanding and respecting the existing cultural dynamics. A report by Gallup found that businesses with high employee engagement see 21% higher profitability, showcasing the critical role of culture in driving business outcomes. Leaders must actively cultivate a positive culture for bespoke HR approaches to succeed.
4. James: Small businesses often lack in-house HR capability. Quest aims to fill that gap – providing support from recruitment to performance management to policy. What cultural pitfalls do you commonly see small businesses falling into when they don’t have structured HR Support – and how do you help them avoid those pitfalls?
Sarah:
Common pitfalls for small businesses lacking structured HR support include unclear expectations, inconsistent communication, and a lack of employee recognition. Poor leadership often exacerbates these issues. According to a recent survey, 58% of small business owners in the UK admitted they lack the skills for effective people management, which can hinder growth and retention. Quest helps these businesses by implementing structured HR frameworks that promote clarity and consistency, ensuring that everyone is on the same page and feels appreciated. By providing leadership training and support, we empower small business leaders to foster a culture of accountability and recognition.
5. James: As part of your services, you train line-managers to become effective leaders. How important is leader behaviour and mindset in shaping organisational culture – and how do you embed that in your training and consulting?
Sarah:
Leader behaviour and mindset are crucial in shaping organisational culture. Leaders set the tone for their teams, and their actions significantly influence employee attitudes and engagement. Research shows that effective leadership can increase employee productivity by 25%. Through our training, we focus on developing self-awareness, emotional intelligence, and effective communication skills, embedding these principles in everyday leadership practices. Poor management practices, such as micromanagement or a lack of feedback, can lead to disengagement and high turnover rates. Our approach equips leaders to create a culture of trust and collaboration, which is essential for long-term success.
6. James: The post-COVID world and cost-of-living pressures have led to increased HR challenges (e.g. tribunals, employee departures). Do you think a strong workplace culture can help organisations weather these external pressures – if so, how?
Sarah:
A strong workplace culture can indeed help organisations navigate external pressures like post-COVID challenges and cost-of-living crises. When employees feel a strong sense of belonging and support, they are more resilient and adaptable. A survey by Deloitte found that 92% of employees believe that a positive workplace culture is crucial for their success. A positive culture encourages collaboration and innovation, enabling teams to tackle challenges more effectively. Effective leaders can harness this culture to motivate teams during tough times, demonstrating that strong leadership is essential for resilience and adaptability.
7. James: For many clients, Quest acts as a fully managed HR department (remote, onsite or hybrid) and helps design induction, policies, engagement programmes, job descriptions, and more. How do you ensure that the culture you help design – one that works on paper – actually lives day-to-day, across remote and in-person teams?
Sarah:
To ensure that the culture we help design translates into everyday practice, we implement regular check-ins and feedback loops. We encourage clear communication of values and expectations across teams, whether remote or in-person. According to research by PwC, 83% of employees believe it is important for their company’s leaders to communicate the company’s values clearly. This ongoing engagement helps to reinforce cultural principles and ensure consistency in experience. Leaders must actively participate in this process, demonstrating a commitment to the cultural values and ensuring that they are reflected in daily operations and decision-making.
8. James: For growing businesses, scaling can threaten culture – new hires, changing structures, shifting priorities. What are the biggest challenges you see when companies scale, and how does Quest help preserve or evolve culture in a growing organisation?
Sarah:
When companies scale, challenges often arise, such as maintaining employee engagement and ensuring cultural alignment amidst rapid change. Quest assists in this transition by facilitating open dialogues about cultural values and involving employees in discussions about new structures and priorities. The Institute of Leadership and Management states that 65% of leaders struggle to maintain their company’s culture during periods of rapid growth. By providing leadership development and support, we help preserve the essence of the culture while allowing it to evolve, ensuring that leaders are equipped to handle the complexities of scaling effectively.
9. James: Culture often has a long-term, intangible impact (morale, loyalty, engagement), yet HR and compliance issues are often urgent and reactive (policy breaches, disputes, recruitment). How do you balance the need for immediate HR compliance and support with the longer-term work of culture-building – and what advice do you give clients about prioritising both?
Sarah:
Balancing immediate HR compliance with long-term culture-building requires a strategic approach. We advocate for integrating cultural values into policy development, ensuring that compliance measures align with the organisation’s mission. Our advice to clients is to prioritise culture in their HR strategies while addressing urgent issues, as a strong culture often mitigates compliance risks. According to a study by the CIPD, organisations with a strong culture are 30% less likely to face compliance issues, underscoring the importance of proactive culture-building in safeguarding against risks.
10. James: Given your extensive experience as an HR consultant working across many sectors and company sizes. If you could name one key cultural change that makes the biggest difference in business performance (regardless of size/sector), what would that be – and why?
Sarah:
One key cultural change that significantly enhances business performance is fostering a culture of trust and transparency. When employees trust their leaders and feel safe to express their ideas, it leads to greater innovation, collaboration, and overall effectiveness, regardless of the company’s size or sector. Research from Great Place to Work shows that organisations with high trust levels experience 50% lower turnover rates, highlighting the importance of trust in fostering a positive work environment. Leaders play a pivotal role in establishing this culture, as their behaviour sets the standard for openness and accountability.
11. James: What was it about Cultiv8tiv that influenced why you chose to partner with them?
Sarah:
Our partnership with Cultiv8tiv was influenced by their commitment to fostering innovation and collaboration within organisations. Their approach aligns closely with our mission to transform workplaces, making them an ideal partner in our journey to enhance workplace cultures. By collaborating with Cultiv8tiv, we are able to leverage their market leading diagnostic tools and combine this with our expertise in mapping and improving the employee journey and experience, ensuring that our clients benefit from best practices that drive cultural change and organisational success.
Final Thoughts
Ultimately, fostering trust and transparency is the most impactful cultural change for business performance. By aligning values with daily practices, leaders drive higher cash flow and resilience. A proactive people strategy ensures that culture remains the bedrock for long-term growth and organisational success.
About Quest Consulting
Quest Consulting Services transforms workplaces by aligning people and performance. They provide a fully managed HR department – remote, onsite, or hybrid – handling recruitment, policy design, and engagement programmes. Beyond compliance, Quest offers bespoke leadership training to empower managers. Quest deliver tailored HR strategies, employee wellbeing, and health and safety support to help businesses achieve long-term growth.