Believe it or not, but according to Forbes 89 % of hiring failures are due to poor cultural fit. This figure should be a wake up call for many companies who believe that skills is all that matters. What a company needs to aim for is a candidate who makes a great job fit as well as culture fit (the compatibility of an individual and a company’s values, beliefs and attitudes). This is considered as an individual’s work-life balance. The persons who have a good balance between his / her work and life often enjoy both their own wonderful life and their family, friends and colleagues.
If a candidate meets both these criteria the benefits can be huge: greater sense of harmony, higher job satisfaction, faster contribution, superior performance, longer retention, better identification with the organisation, higher commitment, higher self-esteem, better physical as well as mental health (leading to less depression and anxiety), saving the company some money (no need to spend additional money in order to replace poor candidates) and having a happier person at the workplace.
According to Havard Business Review, culture fit is the glue that holds an organization together. That’s why it’s a key trait to look for when recruiting or retaining superior performers. The result of poor culture fit due to turnover can cost an organization between 50-60% of the person’s annual salary, according to the Society for Human Resource Management (SHRM). But before the hiring team starts measuring candidates’ culture fit, they need to be able to define and articulate the organization’s culture – its values, goals, and practices — and then weave this understanding into the hiring process.
Several other surveys also highlight the fact that considering the ‘cultural fit’ aspect in the selection process plays a key role.
- 9 in 10 recruiters have rejected candidates due to their lack of cultural fit. 82 % say that measuring cultural fit is important and almost 100 % agree that cultural fit is not just a buzzword. (Survey by Cubiks Netherlands)
- 60 % did not work well with other employees due to a lack of cultural fit. (Career Builder, Poll in 2012)
- 81 % of respondents agreed that cultural fit, not the time and cost to hire of a role, is the most important recruitment factor. While 11 % disagreed saying that priorities can vary depending on the company and sector. (TMP HR Pulse survey)
- 78 % of respondents believe that organisations and hiring managers do not assess for culture fit because they do not know how to do it. (Development Dimensions International, Research Paper)
67 % of job seekers say that finding a company with similar values to their own is important. Corporate culture was the top priority when applying for a job, leaving market presence, financial performance and longevity behind. (RoundPegg survey)
