Company culture is often considered the “secret sauce” for success, but sometimes it’s hard to see exactly how it drives company growth. According to Dr. Scott Leuchter, a Ph.D. in Business Psychology and Chief People Officer at Empower Pharmacy, the direct connection between employee experience and enterprise value is measurable and provable. In a recent episode of the Workforce Navigator podcast, Dr. Leuchter revealed the core elements that shape a workplace culture and how these, in turn, shape business outcomes.
The research-driven approach Dr. Leuchter advocates demystifying the journey from employee experience to customer experience and, ultimately, organizational growth. We will highlight his insights on what the science of HR entails and how to put it into practice.
Human Resources was seen almost exclusively as an administrative or support function. Today, forward-thinking organizations recognize its strategic importance. HR is now often charged with steering culture, engaging teams, and influencing the bottom line.
“We say at Empower Pharmacy that people are our business,” says Dr. Leuchter. “If you truly believe that people are your business, then take care of them in a way that gives them what they need to be successful.”
This shift means HR professionals now play a critical role in creating policies, processes, and experiences that shape employees' feelings about their work. Dr. Leuchter’s transition—from 10 years in the military to 20-plus years in HR, bolstered by master’s and doctoral degrees in industrial-organizational and business psychology—underscores the profound influence HR can have on shaping workplace culture and overall business performance.
A robust HR strategy translates to confident, well-supported teams. These employees, in turn, foster positive interactions with customers, vendors, and partners. By ensuring people have the right tools and leadership support, HR can spearhead the workplace environment that encourages employees to innovate, collaborate, and consistently deliver exceptional performance.
High-level engagement scores often look good on paper, but traditional measures fail to show how engagement translates into business growth. After extensive research on employee satisfaction and performance, Dr. Leuchter developed a survey that measures 18 distinct elements of the employee experience—including rewards, recognition, training, management, and autonomy.
“Most organizations just assumed, ‘If I have high engagement, we’ll get better business results.’ While there’s a correlation suggesting that’s true, it lacks a lot of predictiveness… so I asked, ‘Does experience actually impact outcomes, and how would I study that?’”
Rather than rely on loose correlations, he set out to tie those 18 elements directly to real business metrics—productivity, performance, retention, and referrals—showing just how employees’ day-to-day experiences influence the company’s bottom line. Dr. Leuchter explains the necessity of a precise definition:
“If our employees are having the optimal experience, they’re going to have an engaging experience with a customer... which will drive revenue, and, ultimately, growth.”
In other words, the overall employee experience comprises the most minor daily actions and interactions that build up or break down an individual’s sense of belonging, empowerment, and motivation.
Once Dr. Leuchter identifies the areas that matter most to employees—like manager support, training tools, and recognition—he can predict how those experiences will affect employee morale and customers' treatment. He illustrates this by describing a simple, real-world scenario: if a frontline customer service representative is dissatisfied at work, customers will likely pick up on that, take their business elsewhere, or speak negatively about the brand.
“If they get on the phone with somebody who’s not doing well and not performing well and doesn’t have a good experience, they may go somewhere else, even if all the other elements of their buying decision are there.”
Conversely, an engaged, positive employee becomes a brand ambassador, simplifying the funnel from inquiry to purchase:
“If those employees are having the optimal experience, they’re going to have an engaging experience with a customer… something will happen which will drive revenue, which drives growth.”
All things being equal—price, features, technology—a customer will choose a brand based on how it feels to interact with that brand’s people. This “feel factor” is a powerful differentiator that comes from employees who genuinely want to help, are proud of their company, and see themselves as critical contributors to its success.
Because people and culture are so intertwined, one of Dr. Leuchter’s central arguments is that leaders must invest in these 18 core elements of employee experience, not just for “feel-good” reasons but for tangible growth. From the strategy perspective, culture is arguably the strongest pillar because it underlies everything a company does—innovating, pricing, marketing, and more.
“Human beings are made up of thoughts, feelings, and behaviors,” says Leuchter. “If you can make people feel positive, you’re going to have a better outcome.”
When employees see that their leadership cares about them beyond mere metrics, they are more motivated to excel, innovate, and offer superior service. This sustained motivation ripples outward, improving productivity and profitability.
“Take care of your people… they will go through a brick wall for you. At its core, know your people, take care of your people, and they will take care of the business because they are the business.”
In business environments with fierce competition and rapid technological changes, sustainable growth lies in having the best product or pricing and delivering an unrivaled experience—fueled by employees who embody the company’s values each day.
The proven link between culture and growth extends beyond intuition or vague anecdotes. Dr. Scott Leuchter’s research and hands-on experience demonstrate that organizations can enhance productivity, performance, and customer satisfaction by measuring and improving the precise factors contributing to the employee experience, ultimately driving revenue and a more substantial market presence.
Companies looking to stay competitive in an ever-evolving market should look at their employees as the primary differentiators. By committing to the belief that people are the business, leaders invest not only in their workforce’s well-being but also in the long-term trajectory of their organizations. In doing so, HR evolves from a back-office function to a central driver of strategy and growth, proving that a thriving company culture is much more than a feel-good initiative—it is the foundation for lasting success.