How a People-First Culture Reduced Attrition by 40% in an Indian MSME
Contributed by: Sagar Bhamrah | HR | Merch Matters
Discover how a fast-growing MSME in India tackled high attrition and low engagement by implementing a co-created People First Program. From employee feedback loops to culture-led onboarding, this strategy helped reduce early exits by 40% and boosted satisfaction scores by 28%. A real-world HR story of people-led performance.
From Gifting Clients to Gifting Employees an Experience
At Merch Matters, crafting memorable gifting experiences is our daily business. But somewhere along the way, we realized we had overlooked one important audience—our own people. As a young MSME in the corporate gifting space, we were scaling rapidly. But with that growth came a subtle drift—of engagement, clarity, and connection.
I saw this as more than an HR responsibility – it was a cultural wake-up call. Perks were not enough. It was time to build an environment where people felt seen, cared for, and celebrated. What began as a few tweaks in communication and internal touchpoints soon transformed into a full-fledged cultural reset. In essence, we turned our gifting philosophy inward—to our team.
“At Merch Matters, we realized that while we were busy creating memorable gifting experiences for our clients, we had overlooked our most important audience—our own employees. That’s when we decided to turn our gifting philosophy inward and start crafting meaningful experiences for our team.”
Recognizing the Need for Change
When I joined the organization, the energy was palpable—young, ambitious professionals navigating rapid scaling. But cracks began to show. Burnout among high-potential employees, early attrition, and disengagement were becoming common. Exit interviews painted a pattern: while employees admired the brand, they felt disconnected from its mission and unclear about their own growth.
It became evident that the employee journey needed as much strategy as business operations. It wasn’t just about fixing pain points—it was about reimagining how people experienced work from day one. We needed more than patchwork. We needed an intentional structure that aligned employee purpose with organizational goals.
A Moment of Realization
A casual conversation with a junior employee became the turning point. “I don’t know where I fit in yet,” they said. That line stayed with me. It highlighted a deeper issue—belonging. This was the seed that grew into what we called the People First Program—a framework that would map the entire employee lifecycle from Day 1 to Day 365, integrating performance, purpose, and emotional touchpoints.
What made it special? We co-created it with employees—not for them. This approach made it deeply human and resonant, giving employees ownership over their own experience.
“The People First Program wasn’t just another HR initiative—it was a complete cultural reset. Co-created with our employees, it mapped the entire journey from Day 1 to Day 365, aligning purpose, performance, and emotional connection into one cohesive experience.”
The People First Program: Understand. Integrate. Elevate.
We designed the program in three phases:
- Understand
We began with structured feedback mechanisms—30-day check-ins, empathy interviews, and deep listening exercises. This helped uncover emotional blind spots in the employee experience.
- Integrate
We introduced cross-functional buddy systems, storytelling sessions with leadership, and culture workshops aimed at fostering early connection and clarity for new hires.
- Elevate
In the final phase, we focused on growth. Personalized learning paths, coaching sessions, and strengths-based conversations replaced traditional performance reviews. Managers were trained to focus on building potential, not just managing tasks.
Convincing teams to pause and participate in this initiative was challenging. We reframed it—not as a people initiative, but as a performance strategy. As results became visible, engagement naturally grew.
“Empathy is often treated as a soft skill, but we’ve seen it become a competitive advantage. In high-growth environments, empathy isn’t a luxury—it’s a core strategy that fuels performance, retention, and innovation.”
Tangible Impact: Culture in Action
Within six months, early attrition dropped by 40%. Employee satisfaction scores rose by 28%, especially in areas of belonging and career visibility. Onboarding engagement shot up, with over 85% of new hires actively participating in workshops and buddy sessions.
More importantly, the culture shift was felt. Employees were collaborating more, leaders became more empathetic, and internal mentorship organically emerged. The HR function, once viewed as administrative, became a space for trust and innovation. Even client delivery showed improvement—a testament to how internal alignment impacts external outcomes.
Lessons Learned: Culture Needs Intentionality
The most gratifying outcome was watching young employees evolve into culture advocates. The message was clear: when people feel aligned, valued, and supported, performance becomes intuitive.
My biggest learning? Culture doesn’t scale on autopilot—intentionality does.
As HR professionals, we often obsess over policies and perks, when in reality, it’s presence, co-creation, and deep listening that create a living, breathing culture. The People First Program was our reminder that even in high-growth environments, empathy isn’t a luxury – it’s a strategy.
