Hire for the Organization, Not Just the Job

Culture-Based Recruiting: Hire for the Organization, Not Just the Job

by Steven Hunt, PhD

How Is Culture Related to Recruitment?

The main relationships between culture and recruiting are associated with employee attraction, selection and retention. From an attraction standpoint, culture is primarily about the brand image a company projects. Companies that take culture seriously actively market their culture to candidates. This attracts people who will thrive in the organization and repels people who would be more effective working elsewhere. To get a sense of this, compare the job sites for Sony Electronics and Federated Department stores. Federated predominately employs women, and the Federated Web site has been described as more feminine. In contrast, Sony Electronics' job site conveys technological creativity and innovation. Both Web sites are well-designed in terms of usability; however, they will likely appeal to very different people.

Such efforts pay off directly and indirectly. One study found college students would accept an average of 7 percent less starting pay to work for companies with cultures they value and appreciate. There is also a wealth of data showing that cultural fit impacts employee retention and performance. For example, an insurance company found departments whose environments aligned with the company's stated cultural goals had 30 percent less turnover. People appeared to join the company expecting a certain culture, and if their expectations were not met, they left.

Another reason to recruit around culture is that while job demands and requirements constantly shift, a defining characteristic of culture is that it remains constant in the face of change. A person hired based partly on his fit with an organization's culture is more likely to continue on as a valuable company resource, even if the position he was originally hired for ceases to exist. In fact, an effective organizational culture actually helps people work together to adapt to business changes.

What Is Organizational Culture?

Organizational culture refers to employees' shared assumptions and norms, as well as tangible aspects of the work environment that influence and reflect these beliefs. Whether employees are comfortable openly disagreeing with superiors is a reflection of organizational culture. So are reserved parking spaces and on-site day care.

Ultimately, the most important aspect of organizational culture is the beliefs employees and leaders share about behavior and its consequences. As the saying goes, "perception is reality," and cultural beliefs define perception within an organization. If employees believe they will be punished for pointing out flaws in their boss's ideas, they may not share feedback, even if it would be accepted. Similarly, employees who believe their contributions are truly valued are more likely to forgive minor inequities in compensation