How a People-First Approach Helped Reduce Attrition and Boost Employee Engagement in a Growing MSME

Sagar Bhamrah | Founder | Merch Matters

Merch Matters, a fast-growing MSME in the corporate gifting space, faced early challenges with attrition and employee disengagement. Founder Sagar Bhamrah responded with a transformative People First Program, co-created with employees. This initiative aligned purpose with performance, reducing attrition by 40% and boosting engagement and satisfaction. The story is a powerful example of how intentional culture-building can drive business success.

From Gifting Clients to Gifting Employees an Experience

At Merch Matters, crafting memorable gifting experiences is core to our business. But at some point, I realized we had been overlooking a critical audience—our own people.

As a fast-growing MSME in the corporate gifting space, we were scaling quickly. Yet, with that growth came subtle cracks in our culture – employees were losing engagement, clarity, and connection. It wasn’t enough to offer perks or rewards. We needed to build something deeper – an environment where people felt seen, supported, and celebrated.

This wasn’t just a leadership challenge. It was a cultural wake-up call. What began as a few tweaks in communication and internal touchpoints soon evolved into a complete cultural reset. In essence, we turned our gifting philosophy inward – toward our team.

“We realized that the employee journey needed as much attention and strategy as our business operations. This wasn’t about fixing isolated issues – it was about reimagining how people experienced work, starting from day one.”

Recognizing the Need for Change

In our early growth phase, the energy within the team was electric – young, driven professionals passionate about what we were building. But over time, signs of strain began to show. High-potential employees were burning out. Early attrition became common. Disengagement was creeping in.

Feedback revealed a consistent theme: while employees admired the brand, they felt disconnected from its mission and uncertain about their future here.

We realized that the employee journey needed as much attention and strategy as our business operations. This wasn’t about fixing isolated issues – it was about reimagining how people experienced work, starting from day one. We didn’t need patchwork. We needed an intentional framework – one that aligned personal purpose with organizational goals.

A Moment of Realization

The turning point came during a casual conversation with a junior team member. They said, “I don’t know where I fit in yet.” That single sentence stayed with me. It wasn’t about a role or a title – it was about belonging.

That insight sparked the creation of what we now call the People First Program – a structured, human-centered approach to designing the employee experience from Day 1 to Day 365, integrating performance, purpose, and emotional well-being.

What made it truly effective? We co-created it with our employees, not for them. This collaborative approach ensured the program was meaningful, relatable, and deeply impactful. It gave employees ownership over their own growth and experience.

“That one sentence – ‘I don’t know where I fit in yet’ – became the catalyst for cultural change. It reminded us that every employee isn’t just seeking a role – they’re seeking belonging.”

The People First Program: Understand. Integrate. Elevate.

We designed the People First Program in three distinct phases:

1. Understand

We began by listening deeply. Through 30-day check-ins, empathy interviews, and structured feedback mechanisms, we uncovered emotional blind spots in the employee experience. These insights became the foundation for change.

2. Integrate

We introduced initiatives that fostered early connection and clarity cross-functional buddy systems, storytelling sessions with leadership, and immersive culture workshops. These touchpoints helped new hires feel grounded, welcomed, and connected from the start.

3. Elevate

We reimagined how performance was measured and nurtured. Personalized learning paths, coaching sessions, and strengths-based discussions replaced traditional reviews. Managers were trained to focus on unlocking potential rather than simply managing tasks.

Convincing teams to participate was initially a challenge. So, we reframed the initiative—not as an HR program, but as a performance enabler. As the benefits became visible, buy-in increased organically.

Tangible Impact: Culture in Action

The transformation was measurable and meaningful. Within six months:

• Early attrition dropped by 40%

• Employee satisfaction scores increased by 28%, especially in areas of belonging and career visibility

• Onboarding engagement rose significantly, with over 85% of new hires actively participating in workshops and buddy programs

Beyond metrics, the cultural shift was felt across the organization. Teams began collaborating more effectively. Leaders became more empathetic. Internal mentorship flourished. Even client delivery improved—a direct reflection of better internal alignment.

The HR function, once seen as administrative, became a space of trust, growth, and innovation.

“When people feel aligned, valued, and supported, performance becomes intuitive. The best business strategies are often rooted in human connection.”

Lessons Learned: Culture Demands Intentionality

One of the most rewarding outcomes was watching young team members evolve into culture advocates. It affirmed a powerful truth: when people feel aligned, valued, and supported, performance becomes intuitive.

My biggest takeaway? Culture doesn’t scale on autopilot – intentionality does.

As founders, we often obsess over strategy and scale. But the real magic lies in presence, co-creation, and deep listening. The People First Program reminded us that even in high-growth environments, empathy isn’t a luxury – it’s a strategy.