‘Culture rot’ creeping through UK offices as employee morale and values erode 

More than eight in 10 UK professionals say “culture rot” has set in at their workplace, according to new data from global recruitment firm Robert Walters. The term describes the slow erosion of company values and team spirit that once underpinned success – a silent threat to productivity and morale across UK businesses. 

The survey, published on 6 November 2025, found that 54 per cent of professionals believe culture rot is already a problem, while a further 28 per cent recognise early warning signs. Key symptoms include limited rewards and recognition (41 per cent), poor collaboration (36 per cent) and unclear communication (23 per cent). 

Lucy Bisset, director at Robert Walters North, warned that this “silent threat” is quietly undermining organisational performance. “When values erode and morale dips, businesses lose their edge. Success is diminished not by dramatic failures, but by everyday disengagement and broken communication loops,” she said. 

The research shows that declining incentives are fuelling discontent. While more than two-thirds (69 per cent) of professionals were eligible for a bonus this year, only sligthly more than a third (37 per cent) were satisfied with what they received. Meanwhile, three-quarters (76 per cent) say their company’s benefits package has been scaled back in 2025. Bisset added:

“Comprehensive reward strategies are a cornerstone of healthy company culture. When rewards are removed or reduced, productivity and quality of work quickly fall as employees feel their efforts go unrecognised.” 

The findings reveal a widening disconnect between employees and the values their employers promote. Only 14 per cent of UK professionals feel aligned with their organisation’s mission and culture, while nearly twice as many feel completely detached. Yet 71 per cent of workers still consider company culture and values essential when deciding whether to join a business. 

Bisset said consistency was key:

“If the values and missions outlined in interviews don’t match day-to-day reality, employers will lose the loyalty of their best people.” 

Supporting this, a separate study from diversity consultancy Pearn Kandola found that three-quarters of UK workers have left a job due to culture-related issues. 

The Robert Walters research suggests cost-cutting is accelerating the problem. Although more than half (55 per cent) of UK employers say culture and values are central to their organisation, around a quarter (27 per cent) admit the focus is superficial. Crucially, 81% of employers agree that widespread cost-efficiency measures have weakened workplace culture. Bisset said:

“With cost-cutting high on the agenda, many businesses that once prized growth and innovation have switched to survival mode. Leaders must look inward and act before culture rot becomes entrenched. That means rebuilding trust, rewarding performance, communicating transparently and encouraging collaboration over criticism.” 

For employers, tackling culture rot is about more than boosting morale; it is about protecting long-term business health. Strong workplace culture remains a key differentiator in attracting and retaining talent, particularly in competitive sectors such as tech, finance and professional services.