What is company culture and how can it be used to improve employee retention? Get tips on improving your company culture to help attract and retain your talent.
What is company culture?
Company culture can be defined as the personality of a company. It encompasses how people within an organisation interact with each other and work together, and includes a variety of components, such as company mission, ethics, values, work environment and expectations.
Why does company culture matter?
Corporate culture can be a huge selling point to potential candidates, and a key part of your Employee Value Proposition (EVP). It can help you attract talent and persuade candidates to choose you over another employer. Aside from attraction, a positive, visible, and embedded culture which is embraced at all levels in the organisation can improve retention too –employees that feel part of a company’s culture and aligned with its values are more likely to feel satisfied and motivated in their work, and want to stay.
How important is cultural fit when hiring?
More and more employers are assessing cultural fit along with relevant job history, industry experience and soft skills as part of the hiring process,. This is on the basis that providing the right resources, tools and training can overcome skills gaps and help employees get better at their jobs,whereas the attitudes and values which contribute to a cultural fit cannot be taught –or forced.Research increasingly shows that hiring for cultural fit;to identify candidates who align with your company’s unique culture and values, is a crucial part of effective, strategic hiring. A survey of 55 organisations found that 84% of recruiters agree cultural fit is an important factor in the selection process, and nine out of 10 reported having passed on applicants based on a lack of cultural fit.
Assessing cultural fit when recruiting is especially important for SMEs –in small to mid-size companies, every hire you make can have an impact on the overall dynamic of your organisation (for better or worse). Not sure what you should be asking to assess a candidate’s culture fit? Incorporate open-ended questions into the interview, which relate to the qualities your organisation values most. Try these examples:
How to communicate your culture when recruiting
How can you attract candidates that area match for your organisational values and will fit in with your corporate culture? Aside from specifying the skills and experience required for the role, you can also use recruitment advertising to ensure you attract candidates who are going to thrive in your environment and inspire those around them. Optimising your job adverts to communicate what’s unique and appealing about your work culture can make all the difference –here’s how:
Tips to improve your company culture
Once you’ve optimised your hiring process so that you attract candidates who are aligned with your culture and can help drive your business forward, it’s important to focus embedding your culture throughout the organisation, so that it’s visible and authentic to employees.
1. Organise activities to reflect and strengthen your work culture
If your culture is all about togetherness and shared values, why not introduce social activities to help celebrate successes and bond your team?These don’t need to cost the earth and can be effective in bringing your team together and recognising their achievements.
2. Use your managers and leadership team
How deflating would it be to have chosen your new employer based on the company’s friendly, collaborative culture,only to find the reality is very different? Getting your business leaders fully on board with your corporate culture and values will help embed your culture throughout the organisation, ensuring that new joiners are confident they made the right choice and will want to stay.
3. Embed your culture throughout the business –from your new employee’s very first day
If your company culture is based around the value of teamwork, demonstrate this to new joiners from day one –try introducing a buddy scheme into your induction process, which will immediately show new employees how colleagues work together and support each other. Make sure your new joiners are introduced to different teams and departments early on in their induction, so that they understand how different teams are connected and share the same goals and purpose.
4. Reward and recognise employees who live your values
It’s important to recognise and celebrate employees who live out your core values –whether that’s through their positive attitude towards colleagues, delivery of outstanding client service, or their work ethic which helped their team hit its quarterly target. There are many forms of low cost and non-monetary recognition which allow you to do this –from eCards, to quarterly nominations, certificates or even a simple ‘thank you’ or ‘well done’ from managers to show their appreciation. With studies showing that up to 79% of employees feel undervalued in their role, implementing forms of recognition in your business can have a big impact on retention, as employees will feel their hard work and commitment to the company is noticed and appreciated.
Adecco can help put the right people on your team and give you the support and resources you need to keep them there. To learn more, contact us today.
As an SME, it can be hard to compete with larger businesses when hiring. Get tactics and example EVPs to build or enhance your own Employee Value Proposition.