Cultural Fit: 5 Ways Your Team Benefits From It
For many companies, the organization’s day-to-day culture can be the difference between retaining or losing employees. It’s how companies known for exceptional company cultures, such as Netflix, Great Little Box Company, Zappos, and Warby Parker attract the best talent and top company culture lists year after year.
However, achieving that consistent, positive company culture is no easy feat. It requires your team to align and commit on internal values. Departments need to collaborate and communicate with each other. There are a lot of moving parts, and if you’re not intentional about maintaining your company culture, poor habits and traits begin to take root.
That’s why being intentional about hiring for cultural fit is so critical. In the long-run, hiring employees that aren't a cultural fit will erode your company culture, resulting in decreased retention and less productive teams. All it takes is one poor hire to undermine all of your growth.
5 Benefits From Hiring For Cultural Fit
Imagine your team as one strong, connected chain of employees. One twist or break in that chain and that chain isn't as strong. That's why it's so critical that you're actively hiring for cultural fit. Every employee you add to your team must share the same values as your organization.
Consider this quote by Judith E. Glaser, author of Conversational Intelligence, about the importance of relationships within the workplace:
“Achieving greatness depends on the quality of the culture, which depends on the quality of relationships, which depends on the quality of conversations. Everything happens through conversation.”
When your team can effectively communicate, they can work together as a unit. Everyone feels they are working toward a shared purpose, and overall, your team is more productive.
Here are the additional benefits that come from hiring and retaining candidates that are a cultural fit to your organization.
There’s More Positive Energy
When everyone is on the same page, your team will enthusiastically work towards accomplishing the same mission. However, when you hire someone that doesn’t share your values, even if they have a strong skill set, it can impact morale and hinder the progress of your existing team members and projects.
“97% of employees and executives believe lack of alignment within a team impacts the outcome of a task or project.”
That's why it's critical to maintain and prioritize cultural fit. You want to foster an environment of positivity and growth. Salesforce is an organization that is exceptional at this, as documented in this SalesforceIQ Team values video.
In the video, they show (not tell) what makes someone an ideal fit for Salesforce.
Overall, all new hires need to be a culture fit. It only takes one person that doesn’t believe in your mission, values, or standards to bring down the energy and productivity in the workplace.
Projects Go Smoother
An overwhelming percentage of employees and executives that experience challenges in the workplace agree that a lack of collaboration normally is to blame.
“When it comes to workplace failures, 86% of employees and executives cite ineffective communication as the challenge.”
When employees who aren't a cultural fit are in that mix, it's even more difficult to get things done because the team is not collaborating to the best of their ability. If a team doesn't work together as a single unit, with the same values driving them, the work inevitably suffers for it.
Netflix prevents this by enforcing a culture of "freedom and responsibility" for new hires and employees.
In an interview with CNBC, Patty McCord, "Powerful" author and the former chief talent officer at Netflix, explains why these standards are so critical to Netflix's success.
Overall, when everyone on your team is a cultural fit for your organization, your team will naturally communicate better. Projects will be smoother because individuals who have the same values and motivations have more respect for each other’s contributions.
Projects Are Done On Time
According to a Udemy workforce distraction report, there are already too many distractions at work. Employees find it challenging to stay on task and take longer to finish everyday items, manage their time, and complete projects.
“Up to 69% of full-time employees feel they are frequently distracted, either due to social media, a lack of time management skills, cell phone use, and more.”
In a TedXMidwest talk, Jason Fried, the co-founder of 37signals (now Basecamp) goes into more depth about why people can't seem to get work done at the office, including interrupting managers, frequent meetings, and chitchat with co-workers.
When you throw in an employee that doesn't fit or makes projects more challenging to finish, your team can be even less productive. However, when everyone is a cultural fit, you'll be confident that your employees can work together and remain productive.
That kind of enthusiasm and work ethic is difficult to get from someone who doesn’t get it or believe in the overarching goal or mission.
Employees Stay Longer
If you hire someone that doesn’t fit in with your company culture, you risk having them feel alienated and unmotivated at work. They'll grow uncomfortable and look to leave. And within some industries, it's easy for individuals that have in-demand roles to pick up and start somewhere new.
In a TEDx discussion, Claire Kemp, People Gardener at Unboxed, explains how employers no longer hold the cards, and that many employees expect companies to fit and serve their needs.
If an employee doesn't feel like they fit in, or there isn't an established company culture, it can lead to a lot of turnovers. You'll need to frequently hire new employees, invest in their training, and teach them your policies, values, and processes. You'll spend more time on hiring initiatives and short-term solutions to try to reduce your retention rate.
Many companies struggle with this, with CareerBuilder reporting that on average, employers have a 40% turnover rate amongst their staff.
“Employers say there’s a 40% turnover rate among workers. ”
When you invest in cultivating a strong company culture and hiring for fit, however, employees stay longer and grow with you. You will reduce acquisition and training time, foster in-house company experts, and enhance morale.
Revenue Goals Are Met
When you choose not to hire for cultural fit and prioritize skill instead, you will spend more budget training new employees, investing in their ideas, providing them with equipment, time, and resources, only for them to leave after a few months because they didn't fit in or were simply unfulfilled in that role.
Over time, these expenses add up. Tony Hsieh, Zappos CEO, estimates that bad hires had cost the company "well over $100 million."
Unfortunately, having high turnover rates and hiring over and over again is common for companies that fail to prioritize culture fit in their hiring process. A decent number of employees responsible for hiring expect to lose employees within the next year.
“35% of hiring decision makers expect more employees to quit over the next 12 months.”
If you're one of the companies expecting your employees to quit, it's time to evaluate why this is happening and what you need to do to fix it.
Hiring For Cultural Fit
Every single one of your employees makes contributions to your company every day, positive or negative. Momentum is maintained or lost in the work they deliver. When you hire for cultural fit, you invest in the future of your organization. If you choose not to hire for cultural fit, you risk delaying growth and potentially disrupting your workflow and mission.
If you’re having trouble finding the right candidates or creating a company culture that you feel represents your mission, schedule a consultation to talk with us about how you can foster a better culture and hire for fit.
