There’s no denying the critical role organizational culture plays in the modern workforce. Not only does it impact a business’ ability to retain and recruit talent, but company culture also influences employee happiness, engagement, and productivity.
These reasons are why employers of all sizes are investing more time and resources to improve their company cultures
A recent report from Robert Half further illustrates the importance of organizational culture, and why businesses (including small employers) need to make it a priority moving forward.
The results highlight just how influential a company’s culture can be for both current and potential employees.
Company Culture is a Make or Break Factor in Recruiting and Retention
In November 2018, Robert Half released their report, Organizational Culture: The Make-or-Break Factor in Hiring and Retention
. The survey was taken by more than 1,000 Unites States and 500 Canadian adult workers (18 and older), along with over 5,500 U.S. and 1,200 Canadian senior managers who worked at companies with more than 20 employees.
The first findings in the survey reveal that both job seekers and employers view organization culture as extremely important.
35% of U.S. respondents said that they wouldn’t accept a job offer if the role was a perfect fit, but the company culture wasn’t a match.
Likewise, employers have a very similar outlook. 91% of United States executives said a candidate’s fit with their company culture is just as or more important than that individual’s skills and experience.
According to the report, the main reason why company’s place such value on company culture fit is that it helps to significantly reduce hiring mistakes and turnover. Both of these can end up costing an employer a lot of time and money to find a new candidate.
Promoting Company Culture in the Hiring Process
Today’s recruiting market tends to favor job seekers, who have more options available than in years past. This means that they can be more selective when it comes to which roles and companies to apply to.
Given the influence company culture can play in a candidate’s decision to apply and eventually accept a job offer, employers need to market and promote their culture
throughout the hiring process.
The Robert Half report details a few of the most popular channels employers can use to market their culture to potential applicants:
- Company websites
- Social media and review sites (such as Glassdoor)
- Job descriptions
- Job interviews and networking events
- External recruiters and teams
You can download the full report
to learn more about each of these channels and how you can use them to their fullest potential to help promote your company’s culture.
It’s also incredibly important to understand how company culture impacts a current employee’s decision to want to stay with their employer.
A company that has a poor culture or has one that deteriorate over time runs the risk of increasing turnover and losing top performing employees. Either of these can outcomes can be detrimental to a small employer looking to grow.
What are the Characteristics of a Great Company Culture?
The next part of the Robert Half report provides a few traits that are present in a great company culture. These can be used to compare to your own or could be things that an employer can work on to make improvements.
The 8 signs are:
- People want to work for you
- Your workers know how they add value
- Morale and productivity are running high
- Everyone feels safe to express their opinions
- Bad ideas don’t exist, only better ones do
- People treat each other with respect
- You have a learning culture
- You are winning at retention
According to Robert Half, these characteristics will help employers develop a best-in-class company culture that helps to attract and retain top talent.
But if employers are struggling with their workplace culture and want to make improvements, what can they do? These 5 tips from the report are a good starting point:
- Open lines of communication
- Let staff know you have their back
- Provide clear direction
- Show your appreciation
- Invest in employees’ professional development
The last tip is particularly valuable for smaller employers to keep in mind as learning and development continues to grow in demand
amongst the modern workforce.
Developing a Best-In-Class Company Culture is a Necessity in 2019 (and Beyond)
As recruiting and retention grow more difficult for employers (especially small businesses), it’s critical to remember just how valuable company culture is in overcoming these challenges
Employee and job seeker perceptions can be highly influenced by a best-in-class organization culture, which can result in less turnover and an easier time attracting top talent to the organization.
Small employers in particular cannot forget the importance of company culture when looking at how drive their business into the future.
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