Cultural Fit Factor:How to Attract, Retain and Repel the Right Employee

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While organizational culture has been touted since the early 1990’s as essential for business success, there has been little connection between organizational culture and individual (employee – candidate) “fit”. We have found that having the knowledge of “who you are” and “who you are not” from a cultural perspective, can support the creation of an employment experience that is both authentic and congruent. By paying attention to congruence, alignment and fit, organizations can create an employment message that will attract, retain and repel employees. This process of ensuring “fit” leads to better placements and an increase in the ROI of recruitment and retention programs.

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Cultural Fit Factor:How to Attract, Retain and Repel the Right Employee

  1. 1. Are You Aligning Your Culture and Brand to Increase ROI? THE CULTURAL FIT FACTORzz Pellet, Felix Global Vice President USA 2011
  2. 2. Books by Lizz Pellet
  3. 3. Program Information on This Session• How to assess and define an organization’s cultural frame work• Subcultures with in Cultures• What is Attract, Retain, Repel• The Cultural “Fit” Factor• Personal Values System alignment• Employee Value Proposition
  4. 4. Can you conduct a culture assessment todetermine what “fit” will be?What should be measured and why?• Identity – employment brand• Leadership• Relationships• Communication• Infrastructure• Employee Engagement• Change Management• Finance
  5. 5. Tools to measure organizational culture:• Past Employee Satisfaction surveys• New assessment focused on cultural elements• Standard surveys customized to your organization• Validate survey data• Quantitative and Qualitative data
  6. 6. Benefits of Quantitative Data Quantitative data allows you to determine who you are and who you are NOT! No more guesswork or assumptions. Healthy Neutral Unhealthy Identity 78 13 9 Relationships 72 18 10 Leadership 59 25 16 Employee Engagement 58 26 16 Infrastructure 58 25 17 Communication 55 25 20 Finance 38 39 24
  7. 7. Why do organizations need to understandorganizational culture? • Employee Satisfaction and engagement • To Create a Sustainable Competitive Advantage • What We Stand For Versus What We Do • To Create Internal Brand Loyalty and Trust • To Compete With Other Employers for the Best Talent • To Communicate the Value Proposition to employees • What happens in the case of M&A – whose identity wins, whose identity loses, whose identity do you use?
  8. 8. Why is Culture Important? • Numerous studies show that organizations with performance-driven cultures have better: o Revenue growth o Employment growth o Stock Price growth o Net Income growth • Bottom line: Companies that live their culture are high performing and better places to work
  9. 9. Defining Your Corporate Culture is Not asEasy as One Might Think… • Leaders create cultures that will be most beneficial in helping them achieve their goals as a business. • Differences are very real and can dilute a congruent corporate culture message. • Values will support an organization in times of crisis so that the leadership can easily respond rather than react. Just say J&J. • The ability to perceive the limitations of one’s culture and to develop the culture’s adaptability (change) is the essence and ultimate challenge of human resource leadership. • Airline examples – who do you want to work for?
  10. 10. How Is Culture Created? Actions and Behavior of Executives What Leaders Pay Attention To Executives Culture What Gets Rewarded & What Gets Punished Allocation of Attention & Resources
  11. 11. HR’s Role in Shaping CultureRecruiting & Compensation Training & Talent Performance Staffing & Benefits Development Management Management• Hire people • Create • Instill •Attract the • Create awho will “fit compensation corporate best of the culture wherein” with the and benefit values and best employeescurrent packages that desired •Retain top know what isculture. help reinforce behaviors/skills talent. expected of and drive the that will help •Repel the them and hold• Hire for company promote the ones that just themfit/aptitude, culture. current culture. don’t fit accountable.not skills •Measure culture and identify potential derailers.
  12. 12. Executives Agree that Culture Can Be aSignificant Advantage“We do a lot of things right but all those things can be copied by acompetitor tomorrow. The only thing they can’t copy is our culture.Culture provides us a competitive advantage.” Colleen Barrett, President – Southwest Airlines“We have had firms study our processes and benchmark us for years,but they are hard-pressed to duplicate our success. When it comes toa sustainable competitive advantage, our GE culture is one of themost difficult things for others to copy.” Jeff Immelt, CEO – General Electric“We have no patent on anything we do, and anything we do can becopied by anyone else. But you cant copy the heart and the soul andculture of our company and that distinguishes us from everyone else.” Howard Schultz, Founder – Starbucks“We have a culture dedicated to creating a place where talentedpeople want to work. This gives us a tremendous advantage when itcomes to attracting, developing, exciting and retaining exceptionalpeople.” Ian Davis, Managing Director – McKinsey & Company
  13. 13. Today’s Employees Want Transparency• Employees are looking for a meaningful, authentic and congruent work experience• It is deeply rooted in U.S. culture to talk about our “jobs”• Cultural fit is paramount in finding a job you love (how long did you stay at a job that you didn’t fit)• Potential employees are twittering about their job interviews, the people who are interviewing them and how they are being treated. Potential PR nightmare or outstanding exposure opportunity.
  14. 14. What is Attract, Retain, Repel as itRelates to Culture?• The ability to understand who you are from a cultural perspective.• Being crystal clear on what your culture is as you create an employment brand• Employees will be either attracted to your organization or be repelled by this brand• Employees who do come to work for you and enjoy an authentic and congruent work experience will stick around – retain – and talk to other people about how pleased they are
  15. 15. Attract, Retain, Repel as it Relates toRecruitment and Retention = ROI• Attract – how can you get the best of the best from the current and future talent pool?• Retain – how will you keep the good ones you have that really are a good fit?• Repel – how can you keep the ones that just don’t fit from applying in the first place?
  16. 16. The Connection Between Cultureand its Effect on ROI…• Hard dollars spent on Recruitment and Retention = statistics• Take one executive salary from last year that was a “bad hire”• Baby Boomer = Bust: the 2010 shortage = OR NOT• Gen Y challenges• The new Knowledge worker• Mergers and Acquisitions = Cultural integration issues• Employee Engagement and productivity = do more with less and get back to work• Corporate Scandals = loss of employee confidence and share holder value• Organization’s ability to respond rather than react in times of crisis or challenges = loss of consumer confidence and brand stability
  17. 17. Cultural Fit is key to Employee Engagement Gallup Study Results with responses from over 3 million employees: • 29% of the U.S. work force is actively engaged, 55% is not engaged and 16% is actively disengaged. • That means that 71% of the Americans who go to work everyday are not engaged in their job. • This equates to businesses operating at one third of their capacity. • This can cost the economy up to $350 billion per year. • HR movement – Presenteeism…….. • We have to “measure what we treasure”
  18. 18. The Cost of the Disengaged 1,000 Employees x average hourly wage of $15/hour = $15,000 $15,000 x 2 hours/day in lost productivity = $30,000 $30,000 x 20 days worked in a month = $600,000 $600,000 x 12 months = $7.2 M in lost productivity. These figures are based on a M–F, 8–5pm operation.
  19. 19. So how do you get people engaged?How about have some fun!http://www.youtube.com/watch?v=2lXh2n0aPyw
  20. 20. Boomer Fit This was an actual picture on the career site for Harrah’s Casino in Las Vegas  It was predicted that in 2010, 30,000 boomers would retire a day in the US.  We have to get creative to keep our older workers - IP.  There is as much competition to retain the boomers as there is to attract Gen Y.
  21. 21. The Next Gen Challenges…and you know what they are!• Social networking is KEY Facebook, YouTube and Twitter are the new norms in communication and have changed the branding landscape• UAB Emergency Room Rap http://tinyurl.com/6zvmj7• Read the ERE.net article by Dr. John Sullivan re: who owns your brand http://tinyurl.com/yzfmspb
  22. 22. How Does Organizational Cultural Fit Relateto Your Employment Branding Efforts?• Vision, Mission, Values - leaders create and sustain organizational culture• A common way of thinking, which drives a common way of acting• Shared assumptions and beliefs: the silent code of conduct. It is the glue that holds an organization together…or not• It is your employment BRAND in the truest form – whether you have consciously created it or not• How employees feel they fit and identify with the organization
  23. 23. Cult-like Cultures - What do they have in common?• Strong sense of identity – BRAND - a core ideology. They are VERY clear about who they are and who they are not• Greater tightness of fit. Employees either “buy-in” or “get out”• Self selection process... “this is just not for me”• Show evidence of elitism. They create a sense of belonging [internally] and superiority [externally]
  24. 24. Who Has a Cult-like Culture? Built to Last • Southwest Airlines has earned its reputation as one of the most outstanding companies in consumer and employment branding: Fast, FUN and Friendly is who they are… bags fly free  • You want to be a Nordee? • Mayo Clinic’s Mission • Zappos!Photo Source: Libby Sartain
  25. 25. Encourage & Promote ExecutiveSponsorship
  26. 26. The Starbucks Brand: It’s all “Green” to Me…and to Them!
  27. 27. Values AlignmentKnowing your intrinsic values and asking an organization tocomplete a values assessment.
  28. 28. What is Employee Value Proposition (EVP)?• A narrative proclamation – to the employees – of how an employer will carry out the promise and uphold the values in the employment relationship. It needs to be both rational and emotional.• Make sure you have a clear understanding of EVP before going to the C-suite. Create a proclamation before you outline any creative approach
  29. 29. Creative Approach to EVPWhile your internal marketing departments know your company’sbrand, they may not have the psychometrics or external exposureto pinpoint the EVP or employment brand perception. Peoplerelate best to visual images. Consistency is quality! Source: Southwest Airlines
  30. 30. EVP and the New Addition of SocialNetworking and Sustainability Company Commitment Employees Employee Value Proposition/BrandRecruiting/ Training and Pay, Health and Financial Work/ WorkOrientation Career Recognition, Well-being Security Life Environment Social Networks Development Performance BalanceSustainability Leadership programs Program Communication Delivery Content Vehicles Channels Source: Libby Sartain, co-author “Brand from the Inside”
  31. 31. Example of positioning your EVP.Start each top line with “we offer”…….Compensation Benefits Amenities Career Life Tools Connections Development More solutionsCompetitive More choices, Free Latte, More You can work to help youSalary, Stock more options, Health Club, Opportunities with some of plan your lifeOptions, Bonus, more Foos Ball, to learn and the brightest and futureand Promotional possibilities Sport Courts, grow people around, FinancialOpportunities Covered in a dynamic, Planning, Child Parking challenging Care environment. Assistance, So that you 401(k) Can So that you Customize can grow yourSo that you your Package career with us So that yourcan grow with to meet your So that you So that you and get the work Makes aus and create needs Can Create Can take a most important Differencethe career and Financial break and thingsexperience Security.. have fun at in your life.you want. work Source: Libby Sartain, co-author “Brand From the Inside”
  32. 32. Employment Brand Promise:Delivery TimelineResults 1 to 3 Years Full alignment Significantly better business results Increased ROI of recruitment & retention programs 3 to 6 Months Establish value proposition Develop brand message Roll out initiatives 12 Months Redeploy diagnostic to measure progress Track ROI1 to 3 MonthsDiagnostic, Data Collection, AnalysisDelivery of action plan Time
  33. 33. Sustainability What about being green? How will you shift your culture?
  34. 34. Going Green to Attract, Retain and RepelWhat are your core values as it relates to being a green organization?A report by Sustainable Business Network of Washington (SB NOW)gives us a great list to why a company should go green.Their number one reason? 1. Increasing employee satisfaction, retention and productivity 2. Improving operational efficiency and effectiveness 3. Saving energy, water and raw materials 4. Shielding yourself from escalating energy and water prices 5. Branding the business and differentiating it from the competition 6. Developing a positive, proactive relationship with local compliance inspectors 7. Reducing pollution, waste and greenhouse gas emissions 8. Avoiding fines and other sanctions green guide and certification
  35. 35. The Way We Interview Candidates isForever Changing
  36. 36. CO2 Reduction Using Virtual Interviews 645 kg CO2 17 kg CO2 In-person Interview Live virtual InterviewConducting just 30 live virtual interviews per month is the same CO2savings as taking 60 cars off the road annually
  37. 37. Join the new LinkedHR Green Group!
  38. 38. Why is Green Important to Your RecruitingStrategy and Overall HR Initiatives?“While candidates of all generations have begunevaluating potential employers based on theirgreenness few in recruiting have leveraged this hottopic in recruitment communication and activities”.“Individual recruiters need to make their firm’senvironment stance a critical element of their sales pitchto potential applicants and candidates” Dr. John Sullivan June, 2007
  39. 39. Social Media• We cannot talk about Video/Photo cultural fit without talking Sharing Blogging about how Social Media is changing today’s Podcasts employment. Micro• Social media has Key Social Blogging created a fundamental Platforms shift in the way people Message Boards communicate via real- time conversations RSS online. Chat Rooms Social Networking
  40. 40. The World of Social Networking ChangesEvery Day!
  41. 41. Social Media Revolutionhttp://www.youtube.com/watch?v=sIFYPQjYhv8
  42. 42. ROI: The Cost of Using Social Media vs.Other Methods$$$ $$ Free Corporate Niche boards Micro sites Web advertisements (word press) (application)
  43. 43. Questions?Lizz Pellet’s Contact information:lpellet@felixglobal.com(480) 221-9649Follow me on Twitter:www.twitter.com/lizzpelletInvite me on LinkedIn:www.linkedin.com/in/lizzpellet

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