Company Culture as Recruiting Brand: 3 Ways Culture Impacts Recruiting

Doug Horn on November 7, 2014 10:07:00 AM EST


Cultural fit, as we've learned, is an important factor to screen for during the hiring process. You need to know if the person you're bringing on board will be a team player, or a sociopath who indelibly harms an organization's productivity and morale.

However, the screening process is something that increasingly goes both ways. More than ever, the newer generations entering the workforce are focused on a positive work environment, meaning company culture can play important factor in the recruiting process. In addition to using culture as a way to predict success among new employees, organizations must understand that their culture is analogous to their recruiting brand.

Organizations that have strong, well-defined cultures will always be destinations for talented workers. In fact, a study by Monster found that college students would accept an average of 7 percent less starting salary to work for companies with cultures they value and appreciate. Hey, everyone wants a shot at sitting at the cool kids' table, even if they have to accept less pay.

Thus, it only makes sense that company culture has a large impact on recruiting qualified individuals in more than one way. Below you will find three reasons why company culture affects recruiting so significantly.

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Company Culture Limits Turnover

Companies that use culture to differentiate themselves are making a savvy, calculated business decision, especially because 18% of 2012 graduates listed company culture as their top priority when searching for a job. Naturally, it follows that employees who enjoy working for their respective organizations and mesh with their culture are less likely to depart. With the cost of turnover in 30 case studies from 1992 to 2007 ranging from 5.8% of the employee's annual salary to a whopping 213%, creating a company culture where employees feel valued and empowered should be an absolute mandate.

Creating a positive company culture not only makes the work experience more enjoyable, but it strengthens the company year over year by consistently offering a sanctum for quality candidates. The facts back it up too, as an insurance company found departments whose environments aligned with the company's stated cultural goals had 30 percent less turnover. A lower attrition rate will also put less stress on recruiters and give them the time to find the best available jobseekers on the market.


Company Culture Affects Worker Productivity

When employees do not feel valued or are not properly motivated, their morale takes a hit. The Gallup Organization estimates that there are 22 million actively disengaged employees costing the economy as much as $350 billion dollars per year in lost productivity including absenteeism, illness, and other low morale issues. A culture in which employees are encouraged by their managers to speak up and take risks will yield worker growth and exceeded expectations. A good idea is one thing, but if there are no committed employees to help build that idea, a business will suffer.


Company Culture Improves Quantity of Employee Referrals

In the past, we've discussed how employee referrals are consistently one of, if not the best way of recruiting new employees. In fact, depending on the industry, referred employees are 10-30% less likely to quit and yield a higher profit per employee while having significantly better performance on high-impact metrics like patent creation. A company that espouses a culture which candidates flock to will be one to which its employees recommend their peers. When an organization's own employees are the ones doing a significant portion of the recruiting, well, that's just making it too easy.


Company culture affects many different aspects of a business, all of which subsequently change the way a company recruits. Once an appealing company culture is established, not only does morale improve dramatically, but the quality of recruits goes up, attrition goes down, and recruiter capacity gets released. You hear about establishing a "winning culture" in sports all the time, and the same goes for the office. As soon as that culture is in place, an organization can begin changing the personnel that populate it.