Picture this: you’ve recognized the benefits of hiring remote staff to fill a position in your business. Now, you’re looking for the perfect candidate to join your team, and you’ve got plenty of resumes on your desk, all boasting impressive technical skills that the role needs. How do you pick the right one?
This is where cultural fit comes in.
More and more organizations are discovering that finding a candidate that is the right cultural compatibility is just as important as their technical abilities. But what exactly is it, and why has it become such a crucial aspect of the hiring process, especially in offshore staffing? To find out, let’s first take a look at where this concept began: company Culture.
The glue that keeps an organization together
The concept of company culture isn’t exactly new, with its roots tracking back several decades. Company owners and leaders knew there were internal values that worked to drive a thriving organization. But it was mostly unexplored until Dr. Elliott Jaques, a respected psychoanalyst, and social scientist, published his book in 1951, The Changing Culture of a Factory, that organizational culture was formally recognized as a topic of discussion.
Jaques stated that an organization’s culture “is its customary and traditional way of thinking and doing of things, which is shared to a greater or lesser degree by all its members, and which new members must learn, and at least partially accept, to be accepted into service in the firm.”
Now with a clear working definition, he believed the impact of an organization’s culture on its performance was significant, and a strong culture can foster a shared sense of purpose and direction among employees.
Since then, the idea of company culture began gaining wider acceptance until it became almost impossible to discuss business without mentioning culture. With time, the concept has developed to include a broader range of elements such as core values, work-life balance, employee engagement, diversity, and inclusion.
Some may argue that hiring for cultural fit can impede diversity and the development of new and innovative ideas. But it must be noted that cultural-fit hiring is more than just recruiting people who think and work like you.
It’s about finding individuals who not only share your company’s values, yes, but who can also contribute to a diverse workforce by bringing something new and valuable to the company culture.
Investing on cultural fit
Along with the recognition of the importance of company culture and its DNA, companies have realized that an individual who is a good fit to their culture is more likely to thrive and contribute to its success. As a result, a recent survey of over 1,000 professionals and hiring managers show that 90% of employers have made Cultural Fit the standard in the quest to find the right candidate.
On the other hand, job seekers everywhere are also actively looking for work environments where they feel a sense of belonging to. Companies are now investing time and effort into making sure they attract top talent through their brand, culture, and values.
They are turning their focus on creating a more inclusive and diverse workplace, promoting diversity in hiring practices, providing employee resource groups, and offering training and education on unconscious bias and diversity and inclusion.
Priority is given to employee well-being by offering competitive benefits packages, including mental health resources, flexible work arrangements, and opportunities for professional development.
Same goes for offshore staffing and attracting top talent. With the added benefit of low cost of labor and access to a vast pool of skilled candidates, businesses are putting considerable effort and time into creating a strong sense of community and teamwork that bridges the distance between them and their remote employees, fostering open communication, encouraging collaboration, and rewarding employee contributions.
Is it worth it?
In 2022, the US Bureau of Labor Statistics reported that the current average annual turnover rate is at a whopping 47%, compared to 26% in 2017. Businesses are losing billions of dollars every year as a result of turnovers that could have been avoided.
Currently, replacing a single employee can set a company back anywhere from 50% to 200% of that employee’s annual salary. According to the Society for Human Resource Management (SHRM), it can take anywhere from 6 to 9 months of an employee’s salary just to replace them. This includes not only the cost of advertising the position and interviewing candidates but also conducting background checks and onboarding the new hire.
Hiring offshore staff may cost less for a business, but the process and time spent replacing remote employees is no less harder. Because, really, it’s more than just about the money.
The true impact goes beyond just financial loss. Any experienced leader will attest to the fact that losing valuable employees has many hidden costs that aren’t quantifiable.
When the best people leave, there is also a loss of dependability, creativity, and reliability. It can take a serious toll on team morale, too. Employees can also take important customer relationships with them, potentially leaving your business in the lurch.
The benefits of cultural fit
Just like any other investment, businesses expect a return on the time and resources they spend on company culture. The benefits of hiring based on cultural compatibility is worth exploring. Here are some of the most impactful ones:
- Work Quality and Job Satisfaction
It can be incredibly disheartening for someone who is passionate about their work to be stuck in an environment that doesn’t align with their values. However, by prioritizing culture fit during the hiring process, you can create a workplace where employees can feel emotionally fulfilled and can thrive in their roles.
This would lead to a significant increase in job satisfaction. The more engagement they feel towards their work, the more willing they will be to go the extra mile to achieve company goals with you.
- Better Collaboration
Teamwork does make the dream work. When colleagues are united by common principles, they are more likely to work together seamlessly with a better understanding of each other’s viewpoints. This shared understanding paves the way for better and more effective collaboration.
- Reduced Turnover
When you hire qualified employees who also fit the company’s culture, you’re hiring for the long term. This saves the company money on recruitment and training costs.
- Shared Vision and Goals
When you hire candidates who are passionate about your company’s culture, you’re not just bringing on board another set of hands. You’re welcoming a team member who is intrinsically motivated to help your company succeed. The best part? You don’t even have to convince them of the value of your culture – they already understand its importance and are eager to contribute to your goals. This kind of enthusiasm and dedication can be a game-changer for any organization.
What lies head
The concept of cultural fit is still evolving. As we move further away from the traditional approach that limits us to finding a candidate that fits an already pre-existing mold, actively seeking out individuals who bring unique perspectives and experiences to your organization is definitely the way to go.
Every day, new technology and processes play a crucial role in identifying candidates who can add to the company culture. Special tools are now being developed to help assess candidates based on their values, work styles, and problem-solving approaches, allowing you to identify individuals who share your core values while also bringing fresh ideas to the table even when they are thousands of miles away.
However, you should also take care not to use cultural fit to discriminate or show bias in the hiring process. The key to a strong cultural fit is to welcome people from all backgrounds, use technology and strategic methods, concentrate on planning, and promote innovation and creativity.
There is so much to gain from choosing to hire offshore, and you can take advantage of its potential by making the right decisions. Do not be afraid to challenge the status quo, take risks, and explore new ideas to stay ahead of the game and continue to grow and evolve as an organization.
In the end, we’ve got to say, Investing in culture fit? Definitely worth it.
