How Does Hiring Culture Fits Relate to Employee Retention?

How Does Hiring Culture Fits Relate to Employee Retention?

Posted by Stephen Spiegel on Jul 15, 2020

Ensuring new hires fit with company culture is one of the most effective steps you can take to increase employee retention and create other workplace benefits

When creating your hiring strategy, you already know the importance of aligning job duties with experience and qualifications. But have you considered how important culture fit is when hiring?

This is becoming more of a priority for businesses across industries. More employees are considering workplace environment and company culture when deciding who to work for and how long to stay.

A recent survey showed that 77% of adults would consider company culture before applying to a job at an organization. Over half of respondents said culture is more important than salary for job satisfaction. To attract the top talent you’re looking for, company culture is extremely important to today’s candidates.

So how does focusing on hiring culture fits relate to employee retention?

The importance of a positive company culture

When a positive company culture exists, employees are more likely to be satisfied with their work environment and their role. Satisfied workers are more likely to stick around.

According to a Deloitte study, employees who said they were happy at work and felt valued by their company also reported that their company has a distinct culture.

So, what are the characteristics of good company culture? Here are common traits:

  • Employees feel valued and heard
  • Diversity and inclusion are prioritized
  • Teams feel aligned on the vision and values of the organization
  • The company’s mission is clear
  • Work-life balance and employee wellness are prioritized
  • There is a positive atmosphere at work

These factors are crucial in fostering a positive working environment where employees feel comfortable and supported, in addition to feeling like their position and tasks matter to the company’s big picture.

Impacts on retention

It’s important to note that hiring culture fits not only benefits the organization and continues the positive work environment, but it also ensures that the company is the best fit for the candidate.

It makes sense. If an employee isn’t satisfied with the company culture, they’re more likely to leave. And when you have a high employee turnover rate, recruiting and training costs are more expensive. This can lead to a decline in productivity. The cost of a lost employee could equal up to 1.5 to 2.0 times their annual salary.

To avoid these high costs and to promote employee satisfaction in the workplace, it’s crucial to focus on hiring culture fits from the beginning.

Integrating culture fit into the hiring process

Creating a positive company culture starts with the hiring process. It should be a top priority to find candidates who align with company values and who will succeed under the current workplace environment.

To focus more on hiring culture fits, start with these strategies:

  • Clearly state the company’s mission, vision, and goals in interviews. This information should also be aligned across communication channels, including social media, website, and job postings.
  • Ask questions beyond a candidate’s experience. Include questions like:
    • What would your ideal work environment look like?
    • What attracts you to this company? What do you already know about the culture?
    • How would you deal with [applicable challenging situation]?
    • What traits are you looking for in a manager?
    • What is most important to you about the company you work for?
    • What did you like or dislike about your previous workplace culture?
  • Communicate current company culture characteristics and ask if they think they would be a good fit.
  • Try to connect on a personal level.

It’s also wise to meet with each department when they’re hiring a candidate to find out what that team is looking for. You can then use that information to tailor your questions.

The best way to ensure that incoming employees align with company culture and have a deeper satisfaction with their job is to screen them for culture fit from the beginning. And it’s a cycle—if employees are more satisfied, the retention rate will increase and the company culture, in turn, will keep improving.

3 Rs of an Effective Employee Rewards | Crewhu

Crewhu allows you to easily recognize and reward employees and track goals and other data. Update your retention and recognition strategy with Crewhu and ensure that employees feel seen and heard.

Crewhu’s tools make it easy to build a stronger company culture, including employee recognition and engagement solutions. Contact us to get started today and improve your remote company culture.


Topics: positive company culture, Hiring Culture Fits, Employee Retention and Satisfaction, Better Hiring Strategies

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