Why is Company Culture Important?
At its core, culture represents the way of life within an organisation. It is the invisible force that guides decisions, shapes behaviours, and defines a company’s identity. The impact of a positive culture is multi-faceted and well documented.
Employee Engagement and Satisfaction:
- A Deloitte study revealed that organisations with a well-communicated culture experience higher business performance.
- Gallup reports a 21% higher profitability for companies with highly engaged employees.
Recruitment and Retention:
- Harvard Business Review notes that companies with strong cultures have half the employee turnover rate of their counterparts with weaker cultures.
- Glassdoor found that 77% of job seekers consider a company’s culture before applying.
Innovation:
- The US Journal of Business and Psychology links a strong organisational culture with innovation.
Who Cultivates Company Culture?
Cultivating company culture is a shared responsibility that involves various stakeholders across the business. While leadership plays a significant role, every employee contributes to shaping and maintaining the company culture.
Senior leadership is responsible for defining and communicating the company values, mission, and vision. This must be done consistently to guide behaviour. Executives influence culture through their own actions and behaviours. Being seen to lead by example reinforces the desired values and behaviours. Leadership will allocate resources and support initiatives, including training, team building and recognition programmes, that enhance company culture.
Every employee contributes to the company culture through their daily actions and interactions. Living the company’s values fosters a positive and cohesive culture. Employees should feel empowered to provide feedback on the company culture. This open communication channel helps identify areas for improvement and reinforce positive aspects of the culture.
Aligning Talent Acquisition to Culture
Achieving a balance between skills and cultural fit is essential for successful hires. Hiring someone who is not a good cultural fit can pose several risks to an organisation. These risks can impact team dynamics, employee satisfaction, productivity, and overall success.
By incorporating these 10 strategies into your hiring process, you can increase the likelihood of recruiting individuals who not only have the right skills but also contribute positively to your culture.
- Define Your Culture:
Clearly articulate your company’s values, mission, and vision. Understand the specific cultural attributes that are important for success and use them to evaluate cultural fit in potential candidates.
- Involve Stakeholders:
Include key team members, especially those at the executive level, in the hiring process. Their insights and perspectives on the culture can provide valuable input during candidate evaluations.
- Use Behavioural Interviews:
Incorporate behavioural questions into the interview process to assess how candidates have behaved in past situations. This can give you a sense of their values, work ethic, and whether their approach aligns with your company’s culture.
- Assess Values Alignment:
Explore candidates’ personal and professional values. Evaluate whether these values align with the core values of your company. This alignment is crucial for long-term success and satisfaction.
- Consider Team Dynamics:
Evaluate how well a candidate is likely to integrate into the existing team. Consider the team’s dynamics, communication styles, and collaboration preferences to ensure a harmonious fit.
- Cultural Fit Interviews:
Conduct specific interviews or assessments focused solely on cultural fit. This could involve discussing hypothetical scenarios, presenting case studies, or even involving candidates in team activities to observe their interaction styles.
- Evaluate Adaptability:
Assess a candidate’s ability to adapt to your company’s culture. This is particularly important in the dynamic and rapidly evolving technology sector. Look for candidates who demonstrate flexibility and a willingness to embrace change.
- Use Culture Assessment Tools:
Consider using validated tools and assessments designed to measure cultural fit. These tools can provide additional insights into a candidate’s work style, values, and preferences.
- Promote Transparency:
Clearly communicate your organisation’s culture during the recruitment process. This transparency helps candidates self-assess their fit and ensures that those who join are aligned with the company’s values.
- Feedback Loop:
Establish a feedback loop with candidates after interviews. This not only helps candidates understand your company’s culture better but also provides insights into their perceptions of the company culture.
Hiring for Diversity and Cultural Fit
Hiring for diversity and cultural fit are not mutually exclusive; they can complement each other for a well-rounded workforce. Hiring a diverse team from the outset can be a competitive advantage. It leads to a more dynamic and resilient workplace, promoting innovation, improved decision-making, and better overall performance. Embracing diversity is about more than attracting diverse talent, it is also about creating an inclusive culture where individuals can thrive and contribute their best.
Aligning hiring for diversity with hiring for cultural fit may involve refining cultural values to embrace inclusivity, broadening the concept of cultural fit to encompass diverse perspectives. Using diverse interview panels helps assess candidates for both skills and behaviours that contribute to an inclusive culture.
Managing diversity, cultural fit, and recruitment internally in a growing business can be challenging due to resource constraints, expertise gaps, and time limitations. Businesses often struggle to keep up with best practices, mitigate biases, and handle the increased scale and volume of hiring as they expand.
Working with an Executive Search Partner to help you hire the best talent for your organisation is a strategic decision.
At Alex Partners Executive Search we specialise in partnering with European investment backed businesses and Investment Funds to source top-tier talent across Sales, Marketing, Finance, Product, Operations and People teams. We help build senior leadership teams and individual contributors that will contribute to your business growth. Our unique delivery model and truly borderless approach, allows us to offer our partners access to an ever-evolving global network of candidates that are aligned to your company vision and values.
Conclusion:
Business success relies on the delicate balance of skills, culture, and diversity through strategic talent acquisition. Embracing diversity is not a trade-off between cultural fit and inclusivity; it involves refining cultural values to create an environment where every individual, with their unique perspectives, strengthens the organisation.
