What if there was a way to attract your industry’s top job seekers and maximize their performance post-hire?
You’d be interested, right?
There is a way—and it doesn’t involve a hefty compensation package (although that helps). While the collective workforce still demands competitive pay and growth opportunities, company culture is soaring up the list of what’s most important to them.
It’s time for you to respond accordingly—here’s what you need to know.
The Impact of Company Culture on Your Hiring and Recruiting Strategy
Andrew Adeniyi, founder and CEO of AAA Solutions, an inclusion, equity and diversity consulting firm, said, “Workplace culture has never been more important than it is now, and I find it to remain true for the foreseeable future.”
We couldn’t agree more, and here are some proof points to support that claim:
- Over a third of U.S. employees will reject a job offer if the company culture isn’t right.
- 46% of job seekers consider company culture before applying.
- 88% of candidates cite culture as at least relatively important.
So, if you have job openings and hope to fill them with the best talent, your company culture must be front and center. That means focusing on respect, core values, a supportive leadership team, benefits, job security, and diversity, equity, and inclusion (DEI).
“This positivity [of workplace culture] persists even in the face of the political and economic turbulence experienced in both 2022 and 2023,” Regan Decker, Ph.D., SHRM-CP, lead researcher at SHRM, said.
She continued, “What’s more, irrespective of the country where employees reside, SHRM research over the past two years affirms the numerous benefits of fostering and sustaining a positive workplace culture for both employees and the business bottom line.”
The Post-hiring Impact of Company Culture
The impact of your company’s culture benefits more than just your ability to attract top talent. Your culture also plays a big role in how your new hires perform and your ability to retain them.
In fact, a Gallup study found that a strong organizational culture can increase workplace growth and net profits (over five years) by 25% and 85%, respectively. Meanwhile, The Department of Economics at the University of Warwick found that satisfied employees are 12% more productive than the average worker.
SHRM’s “The State of Global Workplace Culture in 2023” report summarizes this well: Workplace culture remains vital for organizational success. Regardless of the country where they [employees] live, employees who rate their workplace culture highly are more satisfied at work and more committed to their organization.”
These employees are also more likely to stay on your payroll, with 47% of active job seekers citing company culture as their driving reason for looking for work.
Leadership’s Impact on Company Culture and Retention
While fair performance evaluations, employee appreciation, and opportunities for career growth play pivotal roles in company culture and employee retention, the leadership team and their practices are arguably the make-or-break factors—think transparent communication, trust, openness (in good times and bad), and a willingness to seek employee input when making decisions.
Unfortunately, instituting these practices is far from simple and rarely happens overnight. Lou Gerstner, former Chairman of the Board and Chief Executive Officer (CEO) of IBM, said, “Building a culture that encourages radical candor at all levels requires constant work from the leadership.”
He continued, “It took me over a decade to practice, learn, and distill that thought into lessons, frameworks, and interventions to build such a culture for my teams. And I can say now that it is anything but easy.”
That said, leadership teams that take the time to get their culture right, largely by hiring for fit and sticking to their values, will position their companies to stand the test of time and consistently recruit, hire, and retain the top talent necessary to keep their company humming on all cylinders.
Company Culture: Your Key to Success in 2024 and Beyond
Gerstner said, “I came to see, in my time at IBM, that culture isn’t just one aspect of the game—it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value. So, execution is really the critical part of a successful strategy.”
In 2024 and beyond, success will hinge on your ability to attract, hire, and retain talent, especially as the rise of remote and hybrid workplaces removes geographical barriers in hiring and makes the process more competitive. Investing in your workplace culture is one of the best ways to do that.
Reach out today to learn more about how can help you attract and hire right-fit candidates perfect for your growing business.