The Importance of Company Cultural Fit & Talent Retention
rw-admin | 05/05/2016
Series: Talent Retention in 2016, Article 4 (Q Works Group)
When someone says they love their job, this typically encompasses much more than the actual functions of the work itself. This usually includes a fondness for the company they work for. It is nearly impossible to separate the two. One would not agree to love their job if they had to go into an office they despise every day. Herein lies the notion of “cultural fit” within the work environment. This is not a new concept, but many companies are still struggling to find the best way to weigh the importance of cultural fit when hiring new talent. “The result of poor culture fit due to turnover can cost an organization between 50-60% of the person’s annual salary,” according to the Society for Human Resource Management (SHRM).
Before an employer is able to devise a strategy to determine if a candidate is a good fit for the company, the actual company culture needs to be analyzed and defined. This may be more difficult than we assume. Here are some questions to consider, as well as to share with company management and high quality employees of all levels:
- List 5 words you would use to describe the organization.
- What are the values of this organization and do you feel they are maintained on a daily basis?
- Describe the overall personality of the company (its character, “feel”).
- What one thing remains central to the organization that should never change?
- What is the management structure like?
- How is conflict handled?
- 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 single best and worst aspect of working for this organization?
In addition to the more thought provoking questions above, it is also important to take into account the more tangible aspects of a company culture. Things that we tend to think of straight away when asked what type of company we work for:
- Attire: corporate (business) or business casual or casual (jeans or shorts)
- Work space: cubicles or offices or open-floor plan
- Schedule: traditional office hours (8-5 Monday – Friday) or flex-time or remote access
- Team-like environment or defined departments
These lists are by no means comprehensive, but a jumping off point that will help you start the process of taking a good hard look at what the company cultural actually is verses what you may think it is. Next you will be able to better formulate a more definitive description to be used in hiring efforts. Working with a professional recruiting firm who has a great understanding of the importance of company cultural fit and its effect on retention will greatly improve your chances of hiring the right candidates.
Q Works uses a tool called the Needs Analysis Profile to first get a comprehensive understanding of a client’s company culture. Then takes this information and applies it to the recruiting process to make sure only good fit candidates will be considered for the position. By utilizing this technology, an emphasis is put on an area that is often overlooked and can result in turnover.
Candidates are aware that they have options in today’s market and many do not hesitate to leave a company that isn’t a good fit. It is crucially important to be transparent about the company culture during the recruiting and hiring process.
Please visit our website to read the other articles in this series:
Written By: Angie Barnes, Marketing Coordinator, Q Works Group