How Cultural Fit Impacts Organizational Performance
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How Cultural Fit Impacts Organizational Performance

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Anmol Motwani By Anmol Motwani | Journalist & Industry Analyst - Mon, 05/22/2023 - 15:14

As diversity, inclusion and fairness take center stage in corporate strategies, organizations are recognizing the significance of cultural fit and the need for a more conscious acquisition process to better acquire and retain talent.  

Cultural fit is the compatibility between an individual and an organization's culture, values and work environment. It encompasses shared beliefs, attitudes and behaviors that align with the organization's mission, purpose and overall goals. Culture also comprises various aspects of individuals, including how they express themselves, their hobbies, their use of time and even their attire. Experts believe it is crucial to consider the multifaceted nature of individuals, rather than solely focusing on surface-level characteristics. “It is akin to desiring the whole package while overlooking the vastness of a human being beyond those factors,” says Manuela Velez to MBN. 

In today's challenging landscape, cultural fit holds significant importance in either exacerbating retention issues and talent shortages or fostering a healthy organization with dedicated employees in the workplace. According to Hays, a notable percentage of professionals actively seek new job opportunities, driven by factors such as poor management styles or workplace cultures.  From an employee perspective, finding the right cultural fit is advantageous as it enables individuals to bring out their best selves in the workplace. Similarly, a poor culture fit can cost the company between 50-60% of the person’s annual salary,  

Experts suggest that when assessing cultural fit, organizations should ask questions that provide candidates with a broader understanding of what it would be like to work within the company. Therefore, it is crucial to enhance talent attraction processes by approaching candidates with heightened awareness, accountability, and empathy. It is imperative to move away from outdated, cookie-cutter questions that may not effectively gauge cultural fit. “Let us move beyond standard, outdated questions that inadvertently normalize negative cultures and the expectation for individuals to conform. Instead, let us construct thought-provoking questions that delve deeper, foster engaging conversations and promote the sharing of experiences,” says Velez. 

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