Poor Cultural Fit Is Incredibly Costly – For Both Companies and Candidates
Turnover and disengagement can cost a company dearly. Hiring someone that’s a poor cultural fit for a company leads to higher turnover and disengagement, costing the organization 50-60% of the person’s annual salary, according to the Society for Human Resource Management (SHRH). Unfortunately this problem is rampant, with over 68% of employees reporting being disengaged or actively disengaged, according to a recent Gallup poll. Millennials scored at the bottom of the list, with only 29% percent of them being engaged, as compared to 42% of traditionalists. This not only costs the companies money, but the impact on our overall economy is immense. Estimates of the cost of actively disengaged employees alone range from $450 to $550 billion per year. Not to mention that hating your job, or working with people that do, really really sucks.
Great Cultural Fit Is Incredibly Valuable
Companies are recognizing the fact that culture is important for the bottom line and working hard to improve their cultures and cultural fit of the employees that work there. Having a good team not only means having the right experience in the room, but having the right mix of human beings that will work well together. The benefits of having an engaged team are clear, and include:
- Hard Work: engaged employees are more than twice as likely to work late or “go the extra mile” to get things done. 96% of them say they always or almost always put their best foot forward and work their hardest at the office, compared to 71% of non-engaged workers.
- Happy Customers: customers of companies with engaged employees rate them 86% higher than companies with non-engaged employees.
- Lower Turnover: companies with engaged employees are 70% more effective at reducing turnover
- Finding Top Talent: companies with great cultures have a much easier time recruiting better talent,making a recruiter’s job much easier
- More Money: operating income if companies with engaged employees increased 19%, while operating income of companies with disengaged employees decreased 33%
Finding An Incredible Fit
Because of the reasons above, recruiters and hiring managers know that cultural fit is extremely important. But finding it in a pile of resumes can be tough. Here’s how job seekers can put their best fit forward:
- Social media – expressing your interests, core values, and culture over social media is a great way to show future employers that you are right for the job – be sure to stay active and include links to your Twitter, LinkedIn, and others on your resume
- Leverage Your Network – great people know great people. Engage with your network by attending meetups in person or online, and tell people you’re looking for a new opportunity (be specific). This will not only get the word out, but extend your network, putting you in contact with many people who know of opportunities that might not even be listed.
- Express Yourself – to stand out today you need to take a proactive approach and express yourself in a unique way. GIYG.me is a free tool that uses your answers from a short survey to create an infographic with your core values, work styles, and desired company culture. This will catch a recruiter’s attention and provide a personality to go with the experience listed on your resume.
Above all stay positive, and get to know yourself in terms of core values, work style, desired team and company type. Knowing what you seek will make it much easier to find. Good luck!