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Hire for Culture Fit - What It Means And How To Do It Right

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Hire for Culture Fit
What it means and how to do it right
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“I think she’ll fit well into our company.”
“His experience was stellar, but he just wouldn’t be a g...
Organizational
Culture 101
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“I think she’ll fit well into our company.”
“His experience was stellar, but he just wouldn’t be a good fit.”

These phrases are frequently used to describe candidates and whether they will – or won’t – “fit” into an organization’s culture. But what does culture fit really mean? Is there a better way to determine how well a candidate will fit than simply having a good feeling about whether they’ll mesh well? And, how do goals of hiring for culture fit complement—or conflict— with other goals such as diversity or hiring for skills?
This article will explore these questions and provide qbest practices.

“I think she’ll fit well into our company.”
“His experience was stellar, but he just wouldn’t be a good fit.”

These phrases are frequently used to describe candidates and whether they will – or won’t – “fit” into an organization’s culture. But what does culture fit really mean? Is there a better way to determine how well a candidate will fit than simply having a good feeling about whether they’ll mesh well? And, how do goals of hiring for culture fit complement—or conflict— with other goals such as diversity or hiring for skills?
This article will explore these questions and provide qbest practices.

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Hire for Culture Fit - What It Means And How To Do It Right

  1. 1. Hire for Culture Fit What it means and how to do it right alexandermannsolutions.com
  2. 2. What will we explore? “I think she’ll fit well into our company.” “His experience was stellar, but he just wouldn’t be a good fit.” These phrases are frequently used to describe candidates and whether they will – or won’t – “fit” into an organization’s culture. But what does culture fit really mean? Is there a better way to determine how well a candidate will fit than simply having a good feeling about whether they’ll mesh well? And, how do goals of hiring for culture fit complement—or conflict— with other goals such as diversity or hiring for skills? This article will explore these questions and provide best practices. 2
  3. 3. Organizational Culture 101 3
  4. 4. What is it? Before moving on to how to measure culture and hire for it, it’s important to get on the same page about what it truly is. Academics To answer this question academically: “Organizational culture reflects the values, beliefs, and norms that characterize an organization as a whole.” It can include these overlapping concepts: Artifacts, which are visible expressions of an organization. These could include, for example, the company logo, classic company stories, an open concept office layout, and how the CEO communicates. Values, which are often verbal or written expressions of what is important at a company. For example, a commonly stated company value is to put “customers first.” While the terms “values” and “culture” are sometimes used interchangeably, values are really just one part of organizational culture. Assumptions or beliefs that guide behavior. These are deep-seated and largely unspoken. They are what happen when values become so engrained that they are taken for granted. For example, in a company with a strong culture of teamwork, employees will likely develop the assumption that they will help their teammates in a pinch even if it falls outside of their job description or they are not directly recognized for their efforts. 4
  5. 5. To answer the question “what is organizational culture?” practically: it’s “the way things get done around here.” A few examples: Are employees expected to work late and on weekends, or do they shut down their phones the moment 5 pm arrives? Do they dress in suits every day, in jeans and a hoodie, or is it a hybrid where maybe they only dress up when they join a video conference? Are they expected to perform as individual “stars” or work collaboratively at all times? Do they start each internal meeting diving straight into a formal and documented agenda, or do they ask about each other’s weekend and discuss the weather? Will they do whatever clients’ whims dictate at any time, or do they prioritize originally-planned scope and budgets? Practicality 5
  6. 6. If someone says, “we have a strong company culture,” what does that really mean? Most likely, it means that the majority of people who work for the company understand the culture, talk about it in a similar way, and are personally aligned to it. Everyone is moving in the same direction in the same way, and they know it. But what does this mean for an organization with multiple business units or divisions, or one that is geographically dispersed? For example, a manufacturing company will likely have a sales department and internal support departments like IT or HR. And, these could be located in various places around the world. According to Edward Schein, one of the world’s leading researchers in the area of organizational culture, there are several categories of culture: Macrocultures; organizational cultures; subcultures (groups within organizations either due to the level or function of the individual); and microcultures (such as the behavioral expectations within a two-person working team). As one might expect, alignment amongst all of these components is critical. Where there is misalignment, it will be more difficult to conduct business because so much energy is spent getting over the shock of misaligned cultural expectations. Categories of Culture 6
  7. 7. There are multiple methods to assess an organization’s current culture, such as focus groups, interviews with leaders, culture surveys, or comparisons of said culture to those of other companies. One immediate tangible outcome of this type of measurement is to ensure that all employees, particularly top leaders, are aligned on the organization’s culture and the specific words to describe it. As a result, the organization has the ability to create a more relevant and authentic mission or values statement, an updated focus on the desired cultural attributes and the behaviors that operationalize them in goal-setting and performance reviews, along with more focused hiring practices. Measuring Culture --   X X 7
  8. 8. Culture Fit 8
  9. 9. Culture Fitting Your Strategy Organizational culture can sometimes be slow to change, but it should be consistent with the organization’s current and future strategy. For example, if an organization wants to focus more on driving operational efficiency in the future, it should have a different culture than one that focuses on research or innovation and is less risk-averse. Employees will need to adapt their behavior to align with the new company focus, and recruiters will need to amend their talent search to accommodate a candidate profile that matches the culture. Determining what an organization’s culture should be requires a firm grasp of how the organization operates and where it is headed to stay competitive in the market. It also requires an understanding of how adaptive the culture will need to be, because strategic culture change should be planned. People Fitting Your Culture Having an aligned culture does not mean that everyone should be a clone. There is an important difference between a strong culture where employees understand their role within their teams and how they are expected to perform, as well as homogeneity of personality or demographics. Indeed, this is why measuring culture and candidates’ cultural fit objectively is so important; otherwise, a hiring manager may mistake a candidate’s similarity to him or herself as “culture fit.” 9
  10. 10. Hiring for Culture Fit 10
  11. 11. Pros of Hiring For Culture Fit A candidate fits your organization’s culture well if their motivators, values, and beliefs are aligned with the organization’s. An individual may be highly skilled in their field of expertise, but if they do not fit the culture, it is unlikely that they will succeed long-term. For example, imagine that collaboration is required of all employees at an organization, and employees know that this will be required to fulfil the organization’s strategy moving forward. Ensuring candidates understand this, are motivated by it, and have experience thriving in collaborative environments will be key. Research shows us that employees who fit the culture of their organization and various groups in which they belong will have higher satisfaction, stronger performance, and will stay with the organization longer. Some leaders even prioritize culture fit over a candidate’s skills; people can be taught to do the work, but they can’t be taught to have a similar set of motivations, values, and underlying traits that will make them succeed in the company. Recent studies have also found that ignoring culture fit is a big mistake when recruiting millennials. Millennials care a great deal about their work environment and are likely to quickly re-evaluate their employment options if they feel unsatisfied. Understanding the organization’s culture, communicating it to current and potential employees, and hiring those who complement it, is always important—particularly when hiring millennials or future generations. 11
  12. 12. Diversity Initiatives and Culture Fit Recall that hiring for culture fit does not mean hiring for people who are similar to others in the organization in terms of demographics or other attributes. A candidate who is a culture fit may or may not be someone who you personally “like.” It is necessary to dig beneath the surface to understand true culture fit. A successful, well- fitting candidate should care about similar underlying principles and genuinely want the organization to succeed. People from a variety of demographics, backgrounds, and work styles can still effectively align to a strong culture. The respect for and celebration of diversity can be one important element of an organization’s culture. Flexible holidays, employee working groups, diverse leadership, and company communications stressing the importance of diversity and inclusion are all cultural indicators. If these types of attributes are important to an organization, they should be communicated to candidates during the selection process. Diverse and inclusive environments, for example, can encourage employees to have an active voice in shaping the culture in a way that is best aligned with the company’s strategic goals. 12
  13. 13. Measuring Candidate Culture Fit 13
  14. 14. - As previously mentioned, recruiters and hiring managers can sometimes have a misguided view of what culture fit really is and therefore whether a candidate fits the culture. Some dramatic examples of misguided culture fit hiring have revealed that candidates were asked to consume alcohol during interviews, or the new hires’ peers vote on whether they are a fit after a probationary period. These methods were intended to measure whether or not the candidate would fit in with the interests of their potential future colleagues. However, “fitting in” does not necessarily mean the individual is someone that every employee would want to socialize with outside of work hours, and not all employees have a clear understanding of whether a candidate will be able to perform in a way that is aligned to meet goals. It is critical to properly measure candidates’ potential fit with your organization in an objective and sound manner. 14
  15. 15. - Branding Seeing the logo of a brand can (and should) evoke certain thoughts regarding what the company stands for. Whether the organization is known for a specific product, outstanding service, global success, or efficiency, consumers and employees alike can describe what is important to that organization just by seeing its logo or hearing its name. A strong and well-communicated brand, therefore, should provide a candidate with a realistic preview of the company’s culture. For example, someone who thrives on innovation may be tempted to apply to Apple, whereas someone who believes in the importance of security and stability may be attracted to General Electric. Companies that have a weaker brand presence than an organization like Apple or General Electric will have to work a bit harder to communicate their brand to candidates. From the first few words of a job advertisement, to completing an interview, to negotiating an offer, the candidate witnesses first-hand the company’s brand and culture. The more accurate and clearly communicated an organization’s culture is throughout the selection process, the better your candidates will be at appropriately self-selecting in or out of the process based on how aligned they feel. 15
  16. 16. - Interviews Interviews remain the most frequently utilized ways to measure candidates’ fit within an organization’s culture. Candidates must display both the skills and experience required for performance and their potential culture fit during the interview, and often they may be displaying both at once. Behavioral interviews provide valuable insights into how candidates have approached similar work situations in the past, and how they are likely to do so in the future. In addition, they can reveal the candidate’s work style, values, and motivators. All can potentially impact the candidate’s culture fit. For example, a hiring manager could ask a candidate a question about their leadership style. If that candidate is accustomed to making independent, hierarchical decisions, they may not be the best fit for a culture where employees are expected to seek a lot of input. Once again, hiring for culture fit does not mean hiring people you like, or who are similar to you or others within the organization, it means hiring people who will succeed within the organization. New hires who are a good cultural fit will be motivated by the environment and more likely to thrive. Therefore, it can be useful to interview candidates about what types of culture works best for them. Additionally, asking the candidate about work style, preferences for getting feedback, motivators, and preferred working environment can also help determine if the candidate is a good culture fit. 16
  17. 17. - Tests There are two major points to keep in mind when using tests to measure culture fit: 1. A test should be just one of many candidate measures to take into account. It should provide insights that would otherwise be difficult to accurately capture through interviews. 2. It is critical to know exactly what you’re looking for. For example, if you’re testing personality profiles, is it really necessary to have homogeneity of characteristics? Is it even desired? Considering these points, it is recommended to utilize profiling or work-style tests to help shape specific interview questions and provide a complete candidate picture. In contrast, it is not recommended to use a psychometric test as an isolated measure of a candidate’s culture fit or to determine overall if they will be successful within your organization. An assessment to further pinpoint a candidate’s fit with the organizational culture can also be utilized. A personality assessment or a work style assessment can help recruiters and hiring managers better understand, for example, whether candidates prefer more creative or more prescribed work tasks, whether they work better independently or collaboratively, or whether they are motivated by attributes that are similar to the organization’s values such as putting customers first, or the opportunity to take calculated risks. 17
  18. 18. Case Studies 18
  19. 19. Netflix The world was surprised when an unadorned set of 127 slides (no music, no animation) explaining how Netflix shaped its culture and motivated performance went viral. It has been viewed more than 5 million times on the web and Sheryl Sandberg, COO of Facebook, called it one of the most important documents ever to come out of Silicon Valley. Its common sense approach articulated the very heart of the Netflix culture and recruitment process, including:  Hiring only “stunning colleagues” and paying top market rates. Managers hire, develop and downsize smartly so they have A players in every position.  Employees talking openly about issues with their boss, their colleagues, and their subordinates.  Focusing on outputs not effort – reward great results, even if they required minimal effort.  Lots of freedom and minimal administration (e.g. there is no vacation policy at Netflix – employees can take as much leave as they like as long as they deliver exceptional results.) To recruit the right people, Netflix prides itself on establishing much closer, consultative relationships between researchers, recruiters and hiring managers, forming a “Culture of Recruitment”. Its talent acquisition strategy depends on the Manager the Recruiter is working with, and Recruiters spend a considerable amount of time with Hiring Managers to develop a true sense of the team’s dynamic, needs, and impact. Netflix strives to be creative about where they search for talent. They often need people with niche, rarefied technical skills such as big data, so they look beyond searching CVs and keyword matching, in order to probe “beneath the surface” in interviews. 19
  20. 20. National Health Service In 2015 , NHS used “We Love Work” screening assessments over an 18-month period to attract and retain more millennial talent at the organization. Using data from existing NHS employees, the tool measured the personal values and motivations of millennial candidates and matched them to core values and culture of the NHS team they were joining. “We Love Work” increased retention amongst the millennial hires on the program by an average of 22%. This has a significant impact on the NHS’s time to hire, on-boarding processes, and cost of turnover, which can range from $1,600 to over $7,000 per hire. At least 30% of the candidates hired went on to work in other areas of the NHS or were promoted inside the organisation. Zappos Zappos, an online shoe and clothing retailer, has a completely separate part of the interview process aimed entirely at assessing cultural fit. It’s slightly unusual practices have sometimes raised eyebrows:  Interacting with candidates in a range of social settings (the “social test”)  Observing the candidate’s behavior getting picked up from the airport (the “nice guy test”)  Asking new hires to spend their first four weeks manning phones in their call center (the “service test”)  Offering all new hires $3,000 to leave one week into their role – though only 2 – 3% accepted (the “ultimate test”) 20
  21. 21. How Alexander Mann Solutions Can Help Recruiting for cultural fit is vital if you want to attract, engage, and retain top talent. Alexander Mann Solutions is uniquely poised to help you understand your current culture and hire candidates that provide the optimal fit and we welcome the opportunity to talk to you. As a vendor-neutral consulting practice, we have the ability to incorporate the best and latest tools and technologies, coupled with true partnership consulting. We will help you implement your culture-driven strategy to hire and retain the best-fit people into your organization. Let’s get started! 21
  22. 22. Want even more content on hiring for culture fit? Check-out this video, the 20th episode of The Recruiting Reel, where Mark Jones, a Senior Vice President in the Americas at Alexander Mann Solutions, chats about hiring for cultural fit. Click here for the transcript. Measuring Culture 22
  23. 23. Get all the latest updates and insights from our talent experts - click above to follow us and register for our latest news! We are Alexander Mann Solutions and we’re passionate about helping companies and individuals fulfil their potential through talent acquisition and management. Today, nearly 4,000 of our talent acquisition and management experts are partnering with our blue-chip clients across multiple sectors and in more than 90 countries. Delivering a distinctive blend of outsourcing and consulting services (through Talent Collective), our unrivalled experience, capability and thought leadership helps our clients attract, engage and retain the talent they need for business success. For more information, visit alexandermannsolutions.com. 23
  24. 24. Sharon Boslet Head of Selection, Americas M / (+1) 224-908-9614 E / sharon.boslet@alexmann.com alexandermannsolutions.com 24

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