Organizational Culture: The Make-or-Break Factor in Hiring and Retention
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Workplace culture is a make-or-break factor in hiring and retention. Today’s in-demand payroll professionals will unquestionably be scrutinizing your corporate culture and considering whether they want to be part of it. This presentation will discuss why organizational culture matters, how to promote it when hiring, and how to assess the quality of your workplace environment. Presented by Michael Steinitz from Accountemps and Robert Half at the American Payroll Association's 2019 Congress conference.
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Organizational Culture: The Make-or-Break Factor in Hiring and Retention
- 1. #PAYCON Organizational Culture: The Make-or-Break Factor in Hiring and Retention
- 2. 2 Speaker Michael Steinitz Senior Executive Director
- 3. 3 Organizational culture — what it is and why it matters Importance of “fit” for both employers and candidates How to promote corporate culture in the hiring process Signs of a “talent-sticky” corporate culture Assessing the quality of your organizational culture Q&A Key Topics for Discussion 4
- 4. 4 What Is Organizational Culture? 5 Organizational culture, also known as corporate culture and workplace culture, is hard to define. Answering this question can help: Why do people want to work for our company?
- 5. 5 An unattractive corporate culture can impact a company’s ability to recruit and retain the skilled employees it needs to thrive. Reports of an unattractive corporate culture can spread fast through multiple channels — and persist — and make job candidates reluctant or unwilling to work for the organization. Corporate Culture: Why Does It Matter? 5
- 6. 6 Competitive? (Aggressive, quickly takes advantage of opportunities.) Innovative? (Takes risks, willing to try new ideas.) Supportive? (Cares about people’s attitudes and feelings.) Team-oriented? (Cooperative, fosters collaboration.) Traditional? (Acts conservatively and is methodical.) How Would You Describe Your Corporate Culture? 6
- 7. 7 WHAT THEY GET Traditional A Corporate Culture Disconnect 7 WORKERS’ IDEAL CORPORATE CULTURE Source: Robert Half survey of more than 1,000 U.S. workers and over 500 workers in Canada, across a variety of professional fields, 2018 Supportive Team-Oriented WHAT THEY WANT
- 8. 8 Businesses recognizing that employees who thrive in their workplace environment are more productive and loyal. Workers consider it very important, personally, that their values and preferences align with those of their employer. Employers and Workers Focused on ‘Fit’ 8
- 9. 9 Would you accept a job if the role was a perfect fit, but the corporate culture wasn’t? No: 35 percent of U.S. respondents No: 40 percent of Canadian respondents Lack of Fit Could Deter Potential Hires 9 Source: Robert Half survey of more than 1,000 U.S. workers and over 500 workers in Canada, across a variety of professional fields, 2018
- 10. 10 Corporate Culture a Top Consideration 10 Top factor when considering a job offer, aside from salary: United States Canada 1. Vacation time 1. Vacation time 2. Corporate culture 2. Career advancement 3. Career advancement 3. Corporate culture 4. Work-from-home options 4. Professional development 5. Professional development 5. Work-from-home options Source: Robert Half survey of more than 1,000 U.S. workers and over 500 workers in Canada, across a variety of professional fields, 2018
- 11. 11 1. Company websites 2. Social media and review sites 3. Job descriptions 4. Job interviews and networking events Tips for Promoting Corporate Culture in Your Hiring Process 11
- 12. 12 12 What management style do you thrive under? Tell me about the best project you’ve worked on and what made it work so well. How well do you adapt to change? What qualities do you think make you a good fit for our organization? Example Interview Questions to Assess Fit
- 13. 13 Be Prepared 13 Candidates might ask YOU questions such as: How would you describe the company’s culture? What is it like working here? How does the company show it’s interested in helping people build their careers? What attributes do I need to succeed at this company? What is one thing you wish you’d known before you started here?
- 14. 14 Let all hiring experts engaged by your company know about the work style and other key attributes that are common to people who excel at your company. Explain what makes your organizational culture unique — especially, in comparison to your competitors. Don’t Forget External Recruiters 14
- 15. 15 The onboarding process, when spread over time, provides an ideal opportunity to reaffirm to a new hire why your workplace culture is the right fit for them — and vice versa. Corporate Culture in the Onboarding Process 15
- 16. 16 Robert Half research shows that workers who don’t feel there is a good match between them and their employer are the most likely to leave their jobs within one year. Beyond the Onboarding Process 16
- 17. 17 17 Red Flags That Signal an Unattractive Corporate Culture Low morale and lack of productivity Lack of knowledge sharing among employees Employees executing projects without a clear vision or direction Employees focusing on blame rather than fixing problems Employees feeling uncertain about how they make a difference 17
- 18. 1818 8 Signs of a Talent-Sticky Workplace People want to work for you 18 #1
- 19. 1919 8 Signs of a Talent-Sticky Workplace Your workers know how they add value 19 #2
- 20. 2020 8 Signs of a Talent-Sticky Workplace Morale and productivity are running high 20 #3
- 21. 2121 8 Signs of a Talent-Sticky Workplace Everyone feels safe to express their opinion 21 #4
- 22. 2222 8 Signs of a Talent-Sticky Workplace Bad ideas do not exist, only better ones do 22 #5
- 23. 2323 8 Signs of a Talent-Sticky Workplace People treat each other with respect 23 #6
- 24. 2424 8 Signs of a Talent-Sticky Workplace You have a learning culture 24 #7
- 25. 2525 8 Signs of a Talent-Sticky Workplace You are winning at retention 25 #8
- 26. 26 Other Elements of an Attractive Corporate Culture 26 Effective communication Meaningful recognition Positive, interpersonal work relationships Professional development and growth
- 27. 27 Frameworks: Protiviti, Great Place to Work, Ethisphere, etc. Focus groups, internal surveys and self-assessments Formal audits of organizational culture Tools to Assess Your Corporate Culture 27
- 28. 28 Who Is Responsible for Building a Great Place to Work? 28 Answer: Everyone.
- 29. 29 Set the Example 29 Everyone in an organization has a role to play in shaping and monitoring corporate culture, but leaders set the example for everyone else. They are also the ones who can drive change and improvement in the corporate culture.
- 30. 30 How Would You Describe Your Corporate Culture? 30 Competitive? (Aggressive, quickly takes advantage of opportunities.) Innovative? (Takes risks, willing to try new ideas.) Supportive? (Cares about people’s attitudes and feelings.) Team-oriented? (Cooperative, fosters collaboration.) Traditional? (Acts conservatively and is methodical.)
- 31. #PAYCON Organizational Culture: The Make-or-Break Factor in Hiring and Retention Q&A
- 32. Thank you for attending! Please Complete Your Evaluation #PAYCON
Editor's Notes
- SPEAKER WELCOME AND INTRODUCTION. [TO THE PRESENTER: These speaker notes are meant as a guide only and offer some background for you. Please make your presentation more interesting by adding facts and anecdotes from your own professional experience.]
- Allow me to introduce myself. My name is Michael Steinitz, Global Executive Director at Accountemps, a division of Robert Half, which specializes in the placement of temporary accounting, finance and bookkeeping professionals, including payroll professionals. I’m also the Senior Executive Director for Professional Staffing Services at Robert Half. [NOTE: Explain what PSS entails if you decide to mention this.]
- Today we’ll be covering organizational culture, what it is exactly and why it matters. The importance of “fit” for both employers and candidates. How to promote corporate culture in the hiring process. Signs of a “talent-sticky” corporate culture and what that means. Assessing the quality of your company’s organizational culture. And finally, we’ll open the floor to questions.
- Everybody’s heard of it one way or the other: organizational culture, corporate culture, workplace culture, and so on. Still, it’s not easy to define. It’s a mixture of many things, really — including shared values, perceptions, behaviors and skills — that stem from your organization’s most valuable asset: your people. When trying to define your organizational culture, answering this question can be a helpful starting place: Why do people want to work for our company? In other words, what makes your workplace culture attractive not only to job seekers, but also to the people who already work for you?
- An attractive corporate culture matters to the overall success of your business. Here’s why: [SPEAKER: READ FROM SLIDE] Companies with unattractive corporate cultures often get raked over the coals on job review sites, as well as in social and commercial media. They can take big hits to their reputation, their customer and investor bases, and even the viability of their business. And that all leads to challenges in attracting and retaining talent.
- Now, let me ask you: How would you describe your company’s corporate culture? There’s no right or wrong answer to this question, of course. Don’t share your answer just yet. We’ll come back to this question toward the end of the presentation.
- At a time when companies throughout North America are competing for a limited pool of skilled professionals, fostering an attractive workplace culture has never been more important. But the type of organizational culture your firm provides might not be what your current workers, or the people you want to recruit, want. In fact, research by Robert Half shows there is a clear disconnect between the organizational culture workers value most and what they actually experience. Executives in the United States and Canada most commonly reported that their organization provides a team-oriented corporate culture — a work environment that fosters collaboration and cooperation. As for the type of workplace culture professionals want most: Our research found that for U.S. workers, the ideal workplace environment is supportive, where people know that their attitudes and feelings are cared about. A team-oriented environment was a close second. In Canada, those two responses were flipped, but they still ranked at the top of the list. Source: Robert Half survey of more than 1,000 workers in the United States across a variety of professional fields and more than 500 in Canada. And what type of organizational culture are most workers experiencing? Most of the professionals in the U.S. and Canada who were surveyed said they believe that their company has a traditional corporate culture — that is, a conservative work environment where things are done methodically. Source: Robert Half survey of more than 1,000 workers in the United States across a variety of professional fields and more than 500 in Canada
- Today’s discussion is meant to help you determine whether the corporate culture your business offers matches what your workers want — and, if not, how you can make changes that will help eliminate any disconnect. Keep in mind that workplace culture is a two-way street. It’s a make-or-break factor in hiring and retention for both employers and employees. And here are two key reasons for this: [SPEAKER READ FROM SLIDE] [MIKE: ASK AUDIENCE how many of those in attendance are payroll supervisors or managers vs. workers?]
- Without question, professionals who are interested in working for your organization will evaluate your corporate culture closely. And, if they don’t like what they see or hear about it, they may walk away. In fact, research by our company shows a professional’s fit, or lack thereof, with a potential employer’s workplace culture can strongly influence that person’s decision to join the organization. Significant percentages of professionals in the United States and Canada say they would not accept a job — even if they thought that job was perfect for them — if they did not think the organizational culture was the right fit for them. As for employers, Robert Half’s research found that 91 percent of executives in the United States and 90 percent in Canada believe that a candidate’s fit with the firm’s organizational culture is equal to or more important than that person’s skills or experience. Source: Robert Half survey of more than 1,000 U.S. workers and more than 500 workers in Canada, across a variety of professional fields, 2018 [MIKE: ASK AUDIENCE: Is a potential hire’s fit with your organizational culture a top consideration for your business? Has it always been? If not, why now?]
- Corporate culture is definitely a top consideration for many job seekers, too. As you can see, it is one of the top three factors that today’s candidates consider, aside from salary, when weighing a job offer. That’s true for professionals in the United States and Canada, according to research from Robert Half. Source: Robert Half survey of more than 1,000 U.S. workers and more than 500 workers in Canada, across a variety of professional fields, 2018 So, again, you can be sure that most job seekers today will be doing their research on your company before interviewing. Some will do so before they even apply for a job.
- Now, let’s talk more about the role of organizational culture in the hiring process. If your firm provides a great organizational culture, you should use every opportunity to advertise that fact to potential hires. How do you do that? Well, here are some of the ways that leading employers promote their organizational culture. Company websites: Many businesses devote at least one page of their website to describing the company’s culture. They might emphasize their focus on work-life balance, for example. They might shine a spotlight on their efforts to promote diversity and inclusion. They also might showcase ways the business supports the local community or strives to make a positive impact on the environment. Or, they might do all of the above — and more. Social media and review sites: Some firms use channels like Instagram and Snapchat to share short day-in-the-life stories from employees. Many businesses also use social media to host live chats with their executives, to highlight corporate citizenship efforts, or to call attention to special achievements. Your firm should also be on the lookout for negative comments posted online about your company, such as on workplace review sites like Glassdoor. That knowledge can help you prepare to address concerns a potential hire might have about your workplace. You can also communicate information about your company’s corporate culture in job descriptions. Consider including notes about news and awards, such as being named to a “great place to work” list. Also, highlight any perks and benefits that make your business stand out. Job interviews and networking events also offer a platform for talking with candidates one-on-one about your company’s organizational culture.
- When you’re meeting with a potential hire during a job interview or networking event, you could ask questions like these to get a sense of whether that person would be a good fit for your organizational culture. [MIKE: READ FROM SLIDE] [MIKE — ASK AUDIENCE: What type of questions do you currently use to assess a candidate’s fit with your workplace culture? Or, looking at this list of questions, which ones do you think you would ask?]
- Candidates likely will be asking about your corporate culture, too. So, you need to be prepared to answer questions such as these. [MIKE: READ FROM SLIDE; EXPAND ON CONTENT AS APPROPRIATE.] [MIKE – ASK AUDIENCE: Do you find that many of the job applicants you meet are curious about your firm’s corporate culture? What types of questions have you heard from candidates?]
- Another way to promote your organizational culture is through external recruiters. They can be valuable resources for helping to get the word out to job seekers about the type of corporate culture you offer. More than that, they can identify people who are likely to be a good fit for your work environment. And that can help decrease your chances of making a costly bad hire. So, you should … [SPEAKER: READ FROM SLIDE] [MIKE: THIS SLIDE COULD BENEFIT FROM A PERSONAL EXPERIENCE FROM THE FIELD THAT YOU MIGHT BE ABLE TO ADD.]
- When a new employee starts at your company, you want to show them that everything positive you told them about your workplace culture was true. The onboarding process, when spread over time, provides an ideal opportunity to do that. It lets you reaffirm to a new hire why your workplace culture is the right fit for them — and vice versa. Give new employees time to meet with their new colleagues, and explore and take in their new work environment, before you ask them to really start digging into their new role and assignments. Share details about your firm’s history and workplace culture in onboarding materials, such as a video featuring your company’s founder telling the firm’s story. Also, be sure to follow up with new employees throughout the onboarding process to find out how they are adapting and to ask for their feedback. Another tip: Don’t forget about temporary workers and consultants. These individuals may be at your firm for only a few days or weeks, but they can still influence the dynamics of your workplace culture. So, consider providing an onboarding process that’s tailored for them and sets them up for success. Working with a reputable staffing firm can also help ensure you connect with interim workers who are likely to thrive in your work environment.
- Organizational culture also influences retention, by the way, especially early in an employee’s tenure. Research for Robert Half found that workers who don’t feel there is a good match between them and their employer are the most likely to leave their jobs within just one year. Source: Robert Half and Happiness Works survey of more than 12,000 professionals in North America. Now, before we dive into some of the attributes of an attractive workplace culture, and the signs of an unattractive one, I’d like to offer one more suggestion for using organizational culture to enhance retention. If your company has remote workers, make sure that they share the same vision for your organizational culture as your in-house employees do. For example, by making teamwork a cornerstone of your workplace culture, your remote workers are less likely to feel isolated and disconnected — and more likely to stay with your company for the long term.
- Now, let’s discuss some of the common differences between an unattractive, or poor, corporate culture and an attractive — or a “talent-sticky” — one. There are many obvious signs of an unattractive culture. This slide includes just a few examples. [SPEAKER: READ FROM SLIDE; EXPAND ON TOPICS, AS APPROPRIATE.]
- So, what type of organizational culture will you find in a talent-sticky workplace? Let’s focus on eight common signs. Here’s the first: People want to work for you. As we have discussed today, a positive workplace environment and business reputation can be magnets for talented professionals. Job candidates are likely to cite organizational culture, specifically, as a reason they want to join the company.
- The second sign of talent-sticky workplace: Your workers know how they add value. So, if you ask employees how they are personally contributing to the company’s strategic goals and bottom line, they can easily and clearly describe their role and impact. Also, in a talent-sticky workplace, team members proactively seek new ways to make a difference. And interim workers know how they fit into the big picture at your firm, too.
- In a talent-sticky workplace, you’ll also find that morale and productivity are running high. Your employees work hard because they know their contributions matter and are appreciated. They also know the whole team focuses on solving problems and taking on new challenges. And there’s an air of positivity in your workplace that you can feel.
- Another sign of a talent-sticky workplace is that everyone feels safe to express their opinion. No one in the organization is afraid to provide constructive criticism or share their ideas with others — including with the management team. Employees are encouraged to speak up when they make a mistake, or when they see a problem or an emerging risk. And when something negative happens, everyone views it as a learning opportunity.
- The fifth sign of a talent-sticky workplace culture: It’s an environment where bad ideas do not exist, only better ones do. What does that mean exactly? Well, in this workplace environment, there is no such thing as the status quo. Employees are always trying to innovate. They embrace the opportunity to find new ways to solve business problems — including with technology. And they have enough flexibility in their work schedules to let creativity and new idea-generation flow.
- In a talent-sticky workplace, people also treat each other with respect. There will always be internal disagreements and various forms of office politics, of course. But employees from the top down make a conscious effort to minimize this. People are courteous and considerate. They also have a high degree of emotional intelligence — that is, an awareness of others’ feelings.
- Another hallmark of a talent-sticky workplace is that a learning culture prevails. In this type of corporate culture, staff members are encouraged to learn from each other. A learning culture is especially important as more and more businesses pursue digital initiatives and undergo change. For example, an executive with Microsoft who was interviewed for Robert Half’s white paper on organizational culture said that Microsoft made a decision to move from being a “know it all” company to becoming a “learn it all” company. Source: Chuck Edward, Head of Global Talent Acquisition, Microsoft, in an interview with Robert Half contributing writer Jane Kelly. He said that evolution is intended, in part, to help Microsoft stay competitive in the digital economy, and to attract highly skilled talent who will help the company continue to innovate and respond to rapid change. Source: Chuck Edward, Microsoft, in an interview with Jane Kelly.
- And finally, we have what is perhaps the most obvious sign of a great organizational culture, in addition to being able to hire top talent. In a talent-sticky workplace, you are winning at retention. Your employees have high job satisfaction in part because you recruit people who are likely to thrive at your company. And once they’re on board, you also check in periodically to confirm they still find their work meaningful, challenging and enjoyable.
- Every single aspect of an attractive workplace culture could never fit into one comprehensive list. Nonetheless, the eight signs we just discussed can serve as a good point of reference for helping you determine whether your organizational culture is making, rather than breaking, your hiring and retention efforts. I’d like to highlight a few other elements that can help you promote employees’ job satisfaction and create an attractive workplace culture. The first is effective communication. Do you regularly check in with your staff and listen to their ideas and feedback? Do you clearly explain any changes that may affect your workers, and do you handle these matters with care and sensitivity? Second is meaningful recognition. In a positive and healthy corporate culture, management applauds and rewards people who excel and exemplify its values. Do your employees feel appreciated and respected? And are you prompt with providing sincere thanks and praise for a job well done? (Also, are you quick to offer promotions and raises, when they are warranted?) The third element is positive, interpersonal work relationships between employees. It’s easier for people to give their all when they know their teammates have their back. A major sign of a positive workplace environment is employees feeling connected to one another. And the last element is professional development and growth. We talked earlier about the concept of fostering a learning culture for all of your employees. But does your business also give workers the training and resources they need to acquire new skills, add to their knowledge and grow their individual careers?
- OK — so we’ve talked a lot about why organizational culture is a critical factor in hiring and retention, the importance of creating an attractive workplace culture, and some of the key attributes of a talent-sticky workplace. But how can you be sure that you’re fostering an attractive workplace culture? After all, even if you define what organizational culture means for your company, corporate culture is still very much an intangible thing. And that makes it hard to measure. Fortunately, there are tools you can use to help you identify strengths and weaknesses in your organizational culture. For example, consulting firm Protiviti, a Robert Half subsidiary, the Great Place to Work organization, and The Ethisphere Institute have developed frameworks for conducting assessments of corporate culture to look at risk, including the inability to hire and retain talent. Some of these frameworks can also help measure success once changes are implemented. Professionally conducted focus groups, internal surveys and self-assessment techniques can also help you learn how your workplace culture is performing and put you on the road to making meaningful improvements. These methods are an effective way to gather honest and constructive feedback from your employees. And lastly, if your business has an internal audit function, you may want to consider conducting an audit of organizational culture. That can help you determine whether key elements of your corporate culture, like core values, are effectively communicated, understood and applied throughout the company.
- Here’s a question I’m betting is on your mind as we’ve been talking about corporate culture. I say that because many business leaders wonder about the same thing: Who is responsible for shaping and monitoring corporate culture in an organization? Is it senior executives? Or business unit owners and line managers? Or staff-level employees? Or … is it everyone? That’s right: Everyone in the business plays a role in shaping and monitoring culture. Business leadership sets the “tone at the top,” while the rest of a company’s employees are responsible for setting the “tone in the middle” and the “tone at the bottom.” The tone in the middle is embodied by managers to whom staff-level workers report. The “tone at the bottom” is set when employees adhere to the vision, mission and core values that are communicated from the top and middle. And, to ensure they are setting the right tone, those at the top must pay close attention to the type of organizational culture their employees, at all levels, seek. Companies should give every one of their employees a chance to embrace their role as a “positive agent for change” when it comes to shaping organizational culture. That means giving them an opportunity to contribute their ideas and feedback about corporate culture, such as through anonymous surveys.
- Even though everyone in an organization has a role to play in shaping and monitoring corporate culture, it’s true that leaders set the example for everyone else. They are the ones who can drive change and improvement in organizational culture. A company’s culture is largely the product of its history and its past leaders — but it is always evolving. As a business leader, you can, and should, take an active interest in reinforcing the positive elements of your company’s culture so it continues to grow and become stronger. You can do this by “living” your corporate culture and setting a good example for your team. Show pride in your organization, acknowledge the work of others, build positive workplace relationships with colleagues in other departments, and more. Small but powerful everyday actions like these can help to create a work environment where positivity and productivity flourish — the type of organizational culture that any talented professional would want to be part of.
- OK, now we’re back to the question I asked earlier in our discussion: What type of corporate culture does your company have? Is it competitive, innovative, supportive, team-oriented or traditional? Also, are you satisfied with your workplace culture? Is it what you consider ideal? Where does your company have room to improve? And regardless of your preference, do you think you are fostering a corporate culture that your business needs to attract and retain in-demand talent? [SPEAKER: HOLD BRIEF DISCUSSION.]
- I’d like to thank you for taking the time to discuss organizational culture and why it matters to the success of your business. I hope you found the information useful. You can download a free copy of Robert Half’s white paper on organizational culture on our website under our workplace research link at www.roberthalf.com. While you may not have a clear picture in mind of what your business will look like in the future, you can count on this: The demand for payroll professionals with highly specialized knowledge and skills will only increase, and your company will continue to need an organizational culture that helps attract and retain this talent. You will need to continually refine your organizational culture to ensure you are providing a talent-sticky workplace. It should be an ongoing process. Now, I’d like to take any questions you may have.
- Thank you for attending.