How Poor Cultural Fit Affects Organizational Turnover
Michael Clegg | 03/23/2023
When someone says they love their job, they are likely referring to more than just the functions of the job itself. Their connection to their role includes a fondness for the company they work for. It’s nearly impossible to separate the two. One wouldn’t agree to love their job if they had to go into an office they despise every day. This is where the notion of “cultural fit” comes in. This concept isn’t new, but many companies are still struggling to weigh its importance when hiring new talent.
According to the Society for Human Resource Management (SHRM), roughly 20% of employees have left their job due to poor work culture and 49% of employees have contemplated switching roles. Over half of the workforce is left unfulfilled by their current position with a key factor being poor work culture. This high turnover comes with a high-dollar price tag. Some companies have spent billions in the past few years going through this cycle!
So, how can we right this wrong?
Don’t get ahead of yourself. Trying to hire someone who is a “good fit” for the company can’t be done if you don’t even have a clear definition of your company culture. It’s important that you define the company culture and live by it! Start off by considering the following questions:
- List 5 words you would use to describe the organization.
- Describe the overall personality of the company.
- What are the values of this organization? Are they maintained daily?
- What remains central to the organization that should never change?
- What is the management structure like?
- How is conflict handled? Is healthy conflict encouraged?
- What is the communication level within the organization and how does it flow?
- What degree of cross-department teamwork takes place?
- How are employees motivated and rewarded?
- What is the best and worst aspect of working for this organization?
These questions are just a template to help you take a good hard look at what your company culture actually is versus what you may think it is. The hard part is staying true to your company culture day in and day out. Additionally, culture is also defined by the tangible aspects of your workplace, including dress code, workspace, schedule, and company structure (i.e. defined departments or teams).
Now that you have the tools to set your culture, let’s talk about hiring the right employee to fit your puzzle. Hiring the right employee can seem like a daunting task. In today’s market, candidates are aware that they have options, and many won’t hesitate to leave a company that isn’t a good fit. It’s crucially important to be transparent about your company culture during the recruiting and hiring process. This can help you can reduce turnover and increase employee satisfaction and productivity.
Not sure where to start? Working with a professional recruiting firm, like Q Works, can greatly improve the chances of hiring the right candidates. We use a tool called the Needs Analysis Profile to first understand a client’s company culture, then apply it to the recruiting process. We use this tool to ensure only good fit candidates will be considered for the position. Personally, culture is one of the most important pieces of our organization’s puzzle, so we value what our clients are looking for while searching for the right candidate.
The importance of company culture cannot be overstated. Don’t cost your company time and money. Define your company culture first, then start your candidate search, ensuring to stay transparent about your culture. Don’t be afraid to ask for help, either! Staffing agencies can be a great resource when searching for you next new hire! Overall, prioritizing company culture can lead to a happier, more productive workforce and ultimately contribute to the success of the organization.
Source: “SHRM Reports Toxic Workplace Cultures Cost Billions”