Know How Workplace Culture Can Influence Recruitment and Employee Retention

At present, hiring has become a nerve-racking job as it is an employee-oriented market, where it’s finally the candidates who choose or reject a company. But the game does not end with the recruitment process as the big challenge lying ahead is retaining staff. So, HR professionals are looking forward to taking their organization’s culture into consideration because even the most capable candidates can turn out to be a disastrous hire if they do not fit with the organization’s culture. The culture of a business firm refers to its norms, vision, values, as well as the tangible aspects of the work environment that influence and reflect these beliefs. If the company is forward thinking, it will keep on evolving these features over time with a careful effort. Despite its significance, many companies don’t pay attention to creating a strong culture, and they just let it evolve from within. But that should not be done as a proper organizational culture can vastly improve employee retention and performance which translates into growth and profits. Read on further to know how the two aspects are interconnected:

Culture Matters in Hiring and Retention

Once an organization has defined its culture, it can set some parameters to identify whether a new recruit will fit with it or not. Remember even the most resourceful companies can make hiring mistakes and waste hundreds of dollars here. So, you are not an exception. For example, in 2012, the hiring of former Dixon CEO John Browett as retails operations head was announced as a poor culture fit by Apple’s CEO Tim Cook. Well, a traditional interview process is not sufficient to determine whether a candidate will adapt to the company’s cultural or not. To analyze this, the interview process should incorporate multiple forms of assessments, such as personality tests and psychological evaluations. Many companies have addressed this challenge by involving the current employees in the selection process. Face-to-face interactions with candidates can be useful in getting a deep insight into their behavior and perspective, which can be never possible through a more formalized interview process. When employees feel at home within an organization’s culture, they show greater job satisfaction, produce higher quality work, and are more engaged overall. All these factors play a critical role in employees’ retention.

 

Emphasizing Cultural Fit Can Lead to Bias

Although most HR professionals are emphasizing on culture fit, this might lead to problems unless there is a formalized practice to anticipate and guard against biases. To a large extent, it has been found that hiring to match an existing work culture leads to lack of diversity in terms of knowledge, personality, and cultural background. And, employees lose the opportunity to learn and grow their interpersonal skills. Thus, many MNCs are shifting their ‘culture fit’ approach to a ‘culture add’ approach that seeks to enhance existing culture by adding more diverse candidates to the workforce. However, in such an approach, it’s mandatory to check whether the new recruits share the company’s principles or values. This attempt can help in finding the right people who will thrive within the organization while also introducing new ideas and perspectives.

 

Diverse Cultures Are an Asset and a Challenge

While there are good arguments for hiring candidates who can fit with the existing work culture, researches have consistently proved that diverse teams perform better than their less diverse counterparts. Moreover, it has also been found that inclusive and diverse team members are better decision makers. However, to reap these benefits, organizations must be willing to make investments in promoting diversity and making it work. Otherwise, it might lead to devastating outcomes like conflicts. Remember an organizational culture has a tremendous impact on whether or not a newly hired candidate will remain in the organization for a long time. Promoting a healthy culture of inclusion can promote employees’ engagement and work satisfaction.

 

Hiring is a mind-boggling affair that may have many repercussions. So, HR managers cannot just select anyone because they are afraid a competitor can beat them to the punch. They should consider that a bad choice can be very damaging to the company’s productivity and reputation, and that candidate won’t stick around long. Well, if you are wondering how to select the best talent that would prove be an asset in the long run, then try advanced recruitment software. These computerized programs use artificial intelligence to identify the most suitable candidates for a particular position.

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