What Does Cultural Fit Refer To and Why Does It Matter?

Just like people, businesses also have a personality, which is referred to as business culture. A growing number of business leaders as well as HR managers have started recognising how important it is to hire individuals with the personality and business attributes that match the values, attitudes, and beliefs their organisation upholds.

Here is a deep dive into cultural fit and why it’s important for the success of businesses.

Cultural Fit: What Is It?

Cultural fit essentially refers to the matching of individuals with the organisation’s culture.

First, let’s define what business culture means. Business culture refers to the values and beliefs of the company’s founders through the employees’ collective force, the interactions between management and staff, and the environment in which they work.

Just as differences exist in people’s personalities, business culture typically varies from company to company. This is why some individuals fit into a certain working environment and set of business values but fail to do so in others.

It might seem simple, but it’s important to recognise the fact that cultural-fit hiring doesn’t mean that you should hire identical people. Cultural fit should never be a justification for diversity discrimination. Great company culture should reflect a workforce that’s diverse.

Employees should embrace an organisation’s underlying cultural hallmark. If a company’s work involves a highly collaborative approach, then persons that work well without being on teams may not necessarily be the ideal fit. However, to augment company culture, it’s important to avoid building teams with individuals who all act, look, and think in a similar fashion.

Great cultural fit is predicated on the undeniable fact that employees who feel connected to the business’s values and naturally click with its nuances will b more likely to thrive.

Why Does Cultural Fit Matter?

Confusion exists in the world of business regarding how to do cultural fit hiring the right way, but the consensus among most HR leaders is that it is important and here are 5 reasons why:

  1. Employee Retention

We spend over 33% of our lifetimes at our places of work, which is why it’s important to make sure that employees feel happy and connected in the place they work. One of the most important aspects of employee retention is cultural fit. Employees who don’t pair well with company values will have poor job satisfaction and may end up creating a work environment that’s toxic and will be far more likely to leave.

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  1. Employee Engagement

If the beliefs and values of employees match those of the company that they work for, they will be more likely to work hard and be highly committed to the organisation. People that are in jobs that match their personality are usually more confident and competent. Employee engagement at this level is critical to business success.

  1. Performance and Productivity

Companies that have a strong business culture along with employees who believe in the company’s goals and values tend to have higher productivity.

  1. Cohesion

Teams that work together and share core values tend to function better and are aligned with shared goals compared to teams whose priorities are disjointed. In teams where employees are committed to shared values, both personal and professional differences are generally a lot easier to resolve.

  1. Communication

Companies that have a strong culture tend to be interested in working collaboratively and open communication. Communication among employees naturally becomes easier if there are shared values.

Company culture is one of the most powerful drivers of business success. It’s the key to employee productivity, performance, and engagement. Employees who identify with the company they work for more are likely to perform better, be committed, and be happier, experience greater satisfaction with their jobs, and are less likely to leave their organisation. This is why cultural fit matters.