Hiring for Cultural Fit: How to Create A Happier, More Loyal Workforce

Hiring for

CULTURAL FIT:How to Create a Happier, More

Loyal Workforce

Welcome to HIRING FOR CULTURAL FIT:

How to Create a Happier, More Loyal Workforce

Darleen DeRosa, Managing Partnerdderosa@OnPointConsultingLLC.com | 203.533.5128

OBJECTIVES● Understand why company culture is

important and how to define it

● Learn how to assess candidates for cultural fit

● Understand the dangers of focusing too much on cultural fit

Culture tells us what to do when the CEO isn’t in the room, which, of course, is most of the time.

-Frances Frei and Anne Morriss, Harvard Business Review

WHAT CULTURE IS

A set of sharedattitudes, values, goals,

and practices that characterizes an organization

thinking, behavingor working

WHAT CULTURE IS

A way of

Zappos

EXAMPLES OF CULTURE

Requires employees pass a “cultural fit interview” and spend the first month

manning phones in the call center to ensure they are focused on customer service.

“Businesses forget about culture and ultimately they suffer for it because you can’t have good service from

unhappy employees.”

-Tony Hsieh, CEO, Zappos

Southwest AirlinesEXAMPLES OF CULTURE

Choose to put employee happiness first, customer happiness second and

shareholders third. Promotes examples of great service through videos and weekly

shout-outs from the CEO

“Competitors can buy tangible assets, but they can’t buy culture.”

-Herb Kelleher, Founder, Southwest Airlines

Why Is Cultural Fit

Important?

1. HIRING● The cost of replacing an employee

ranges from 50% to 400% of annual salary, depending on position.

● Simply put, it’s much easier to retain employees than hire new ones. Culture is a key component of attracting and retaining top talent.

2. RETENTION● Employees are more likely to stay

when they feel fulfilled, decreasing the costs of recruiting, hiring and training.

● Unhappy workers cost U.S. businesses $450-$550 billion in lost productivity each year, according to a 2014 Gallup State of the American Workplace report.

3. REPUTATION● Companies with strong, distinctive

cultures tend to attract more positive publicity and be perceived more favorably. Consider the response to REI, which broke tradition by closing on Black Friday 2015.

● In the age of social media, the voices of unhappy customers or employees can be amplified. Consider the open letter to the Yelp/Eat 24 CEO that went viral recently.

How Do You Define Your Culture?“Determining if someone fits the

culture starts by defining the culture, not by defining the person.”

-Lou Adler, author, The Essential Guide for Hiring and Getting Hired

AMERICAN EXPRESS BLUE BOX VALUES“At American Express, we have a mission to be the world’s most respected service brand. To do this, we have established a culture that supports our team members, so they can provide exceptional service to our customers.”

1. OUTLINE YOUR MISSION

● The CEO and executive team must spell out the company’s mission, values and strategic objectives.

PEP BOYS AND THE ROAD AHEADWhen Pep Boys rebranded, it needed to update its employee competencies to align with a more customer-service oriented approach. It began to recruit employees with customer service backgrounds who were friendly, responsive and helpful.

2. TRANSLATE VALUES INTO BEHAVIORS

● Outline desired traits and behaviors that will support your mission.

THE ZAPPOS CULTURE BOOKZappos employees write a culture book every year describing how they feel about working there and how they reinforce the company’s 10 core values.

3. COMMUNICATE DESIRED BEHAVIOR

● Be sure all employees understand what is expected of them. Communicate through handbooks, internal newsletters and through words and actions.

SOUTHWEST EMPLOYEE VIDEOSThe CEO of Southwest Airlines gives a shout-out to one employee each week and highlights outstanding service through videos shared with employees.

4. REINFORCE BEHAVIOR

● Recognize employees for demonstrating desired behaviors and provide coaching when necessary.

NOT A FIT?WE’LL PAY YOU TO QUITNew employees at Zappos are offered $2,000 to quit after the first week of training if they decide the job isn’t for them.

Assessing Candidates for Cultural Fit

1.Use a Variety of

Assessment Tools

Behavioral Interviews

Ask open-ended questions that reveal desired traits, such as leadership, integrity, ability to collaborate and problem-solving skillsEx: “Tell us about a time when you had to make a decision that was unpopular.”

Personality TestsHelpful in determining how the candidate is most likely to work with others, what motivates him/her and what work environment is necessary for success. Some tests can even be customized to map to cultural attributes.

Situational Judgement TestsDetermines how the candidate is likely to respond to a variety of challenges in the workplace. Based on responses, you can infer how they would be likely to respond in real life.

Simulations

Allows a hiring manager to observe behavior in situations the candidate is likely to encounter

Invite a group to be part of a panel that asks questions or facilitate casual interactions while waiting for the interview, over lunch, etc.

2.Involve Employees

Ex.: Zendesk’s “licorice test” offered candidates a piece of salty licorice to gauge their reaction

3.Use Unconventional Tactics

Where Appropriate

A Note of Caution: When Culture Becomes Cult

We are hard-wired to like people who are more like us.A study by the Kellogg School of Management found job offers were strongly influenced by interviewer’s perception of cultural fit.

Culture Can Be A Shield for Discrimination

Just because someone fits in and is likeable does not mean they are the most qualified candidate. Using objective, data-driven assessments can help you avoid snap judgements.

Prioritizing Cultural Fit Over Competence

“Groupthink” stifles innovation. Look for candidates from diverse backgrounds who will bring a wide range of experiences and perspectives.

Too Much Emphasis on Cultural Fit = Lack of Diversity of Ideas

Hiring people is an art, not a science, and resumes can’t tell you whether someone will fit into a company’s culture.

-Howard Schultz, CEO, Starbucks

WRAP UP & QUESTIONS

THANK YOU!If you have any questions

feel free to let us know.www.OnPointConsultingLLC.com | 203.533.5128