Hiring people with the right skills and qualifications is crucial to running a successful business. Hiring executives use resumes to look for candidates who have the necessary skills to perform the job and are a strategic fit for the company’s objectives.
However, lately, more and more organisations are restructuring their workforce hiring strategies to achieve their diversity, equity, and inclusion (DE&I) goals along with environmental, social, and governance (ESG) approaches. This has led the executives to look for candidates who are a team fit or cultural fit to the company’s culture.
Hiring is no more about ticking all the checklists of qualifications and skills but about looking for a qualified individual who would bring something more to the organisation beyond the job description. Cultural fit would refer to someone whose values and beliefs align with that of the values and norms of the company.
Studies have shown that employees who have values, priorities, and work styles aligned with the company’s culture are more likely to thrive and be an asset to the company. While those who do not have beliefs similar to the company will have difficulty succeeding. The performance of such an employee will affect not only the performance of their team but also the company.
According to a study by Deloitte, 88 percent of job seekers and 94 percent of employers agree that work culture is crucial for success. The bottom line is that office culture and work-life affect employers and employees alike.
In this blog, we will discuss why cultural fit is more important than resume matching.
What is a resume fit, and how is it a disadvantage to solely rely on it to hire?
As an employer, you always want the best talent to hire for your company. For decades, recruiters have relied on resumes to hire people. A resume provides insight into the candidate’s schooling, work history, performance, and achievements. However, as the job market is evolving, resumes may not be a proper way to determine whether a person is a good fit for the company. Skills such as problem-solving, adaptability, and teamwork are critical, which often can’t be determined from a resume.
Hiring people entirely based on resumes may come with limitations such as:
- Subconscious Bias:
The resume may lead you unknowingly towards certain schools or job titles. It affects the recruiter’s ability to hire the best talent, overlooking a highly qualified candidate.
- Misrepresentation:
Studies have shown that 78% of information resumes are misleading, and 46% of resumes have actual lies. If you are evaluating resumes, there is a high probability that you are making decisions based on inaccurate information.
- Limited perspective:
Resumes cannot highlight the exact skills or qualifications of a candidate. It only gives a small insight into the kind of jobs or responsibilities held by the candidate. This may cause you to overlook their potential.
What is a cultural fit, and what is its importance to an organisation?
A company’s culture is reflected by the founder’s and senior management’s work ethics and priorities, which they feel are important for the company’s success. Cultural fit is about essentially matching candidates with the company culture.
It is more of an ecosystem where the organisation and the employees share a mutually beneficial relationship, which would include the employees and the technology with a free-flowing communication among all. Business culture may also vary from company to company.
Importance of cultural fit hiring:
- Fosters well-being of the employees:
When employees connect with the values and beliefs of the company, they feel less stressed and burned out. They have a healthier work-life balance and can effectively manage the challenges of their workplace.
- Promotes adaptability:
A good cultural fit enables employees to navigate organisational changes, such as shifts in strategy, processes, and leadership.
- Strengthening relations with customers:
A diverse team with shared values can interact with a diverse customer pool and build trust with the customer, strengthen relationships, and enhance the company’s reputation.
- Encourages innovation:
Creating an environment where employees feel included, take more risks, share creative ideas, and work on innovative projects. This plays a key factor in the success and growth of the organisation.
- Performance and productivity:
Companies and employees who believe in common goals and values are found to be more productive in terms of performance. Poor work culture creates dissatisfaction, which leads to a productivity drain.
- Communication:
Employees in companies with collaborative work cultures and strong communication find it easier to communicate among themselves. It leads to proper engagement, performance, and productivity.
- Cohesive environment:
A team where the members have similar core values is more likely to sort out their personal and professional differences than a team with incoherent priorities.
- Staff retention:
Given the fact that we spend more time at our workplace, employees who do not feel connected with the company’s work environment are more likely to quit. Because they won’t be satisfied with their jobs, retaining employees will be an issue.
Conclusion:
Traditionally, cultural fit hiring was done based on subjective assessments and gut feelings, which may lead to unconscious bias and homogeneity. Hiring a cultural fit does not mean recruiting identical people but hiring people who have similar beliefs. Cultural fit hiring should not be a means of discrimination but should reflect a diverse workforce.
As the working conditions evolved, executives also realised the need for diversity and inclusion, creating a workplace where individuals from many and various backgrounds felt respected and valued. Incorporation of cultural agility has become a sought-after trait for organisations to navigate through the complex global markets.