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Cultural Fit and the Importance in Business

cicerone by cicerone
July 6, 2023
in Business
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Just as with people, businesses have a personality, which is called business culture. A rising number of HR managers and business leaders are realising the importance of hiring people with the personalities and business attributes to match the beliefs, values, and attitudes upheld in an organisation.

In this post, we’ll explore exactly what cultural fit means and the reasons it’s important for business.

Table of Contents

  • What is cultural fit?
  • Why is it important to have a cultural fit?
    • Staff retention
    • Staff engagement
    • Productivity and performance boost
    • Cohesion
    • Communication

What is cultural fit?

Cultural fit is all about matching people with business culture. For starters, let’s define what the term “business culture” means.

Business culture can be seen as the beliefs and values of the company’s founders through the collective force of the employees, the interactions between the management and the employees, as well as the environment in which they work.

Just as there are several variations in an individual’s personality, business cultures also tend to vary from company to company. This is why some people easily fit into a particular working environment or one set of business values but not in others.

It might seem simple, but it’s actually very important to understand that cultural-fit hiring doesn’t necessarily mean recruiting identical people. Cultural fit should not be used to discriminate against diversity. Ideally, a great company culture should be able to reflect a diverse workforce.

The underlying cultural hallmark of any company should be embraced by the entirety of its staff. If the company has a highly collaborative approach to working, then people who work best on their own might not be the best fit. Still, to enrich the company’s culture, it’s important to avoid building teams with people who look, think, and act the same way.

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A great cultural fit is based on the fact that employees who feel connected to the business’ values and match its nuances more naturally will be more likely to thrive.

Why is it important to have a cultural fit?

In the business world, there’s some confusion about how to hire for cultural fit. However, an overwhelming majority of HR managers agree that it’s vital to hire for cultural fit. The following are 5 reasons why:

Staff retention

Considering that people spend a third of their lifetime in the workplace, it’s important for employees to feel connected and happy in the place they work. Cultural fit is one of the key aspects when it comes to employee retention. Workers who don’t mesh well with the values of the organisation won’t be satisfied with their jobs and may even have the potential to create a toxic working environment. They are also much more likely to leave.

Staff engagement

When the values and beliefs of employees are in tune with those of the organisation they work for, they are more likely to become committed to the company, work harder, and go above and beyond. Employees who are in jobs that match their personality also tend to be more competent and confident. This kind of employee engagement is important for business success. London creative recruitment agencies can help you with staff engagement.

Productivity and performance boost

Organisations with employees who believe in the values and goals of the business and have a strong culture are generally more productive.

Cohesion

Teams that work together with the same core beliefs and values tend to function better and are more aligned with the same objectives, compared to teams with disjointed priorities. Personal and professional differences are a lot easier to resolve in teams where the staff are committed to similar values.

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Communication

Companies with a strong culture are overall more interested in collaborative working processes and open communication. When their values are aligned, employees will naturally find it easier to communicate.

Company culture is a critical driver for business success. In fact, it’s the key to employee productivity and performance, and engagement. Staff who identify more with their organisation tend to experience greater job satisfaction, are happier, perform better, are more committed, and are more likely to stay with their company. This is why cultural fit is essential.

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