Organizational Culture: Your Magnet to Attract and Retain Top Talent

Talent management is no child’s play.

In the current candidates-driven jobs market, attracting and retaining top talent is one of the biggest challenges for organizations.

The tech evolution has added woes to this challenge.

So, how do organizations address this challenge?

Organizational culture – a two-word solution.

Create it and build on it.

Before we delve deeper into the solution, let’s understand the relationship between prospective candidates and your organization’s culture.

Job Application Decisions and Organizational Culture

Organizational culture is no longer a buzzword as more and more millennials and GenZ place a lot of emphasis on it. Here are some stats to help you understand the importance of workplace culture.

↳ About 81% of employees consider organizational culture as essential.

↳ About 51% of college graduates prioritize corporate culture when seeking employment.

↳ And about 83% of urban workers see culture as a vital part of their growth.

So, what exactly is organizational culture?

Organizational Culture –  Definition and Importance

If we were to start a conversation about organizational culture, it could lead to an endless debate.

In recent years, there has been much discussion of corporate culture and its importance for businesses to have a competitive edge over their peers.

While everyone agrees that Company Culture exists and plays a crucial role in shaping organizational behaviours, there is no definite definition for it. So, based on what we know about organizational culture, let’s sum it up as follows.

Your organizational culture is an unwritten code of conduct based on your organization’s core values, beliefs, priorities, and your organization’s mission.

As for why it’s important.

Here are the reasons for its importance.

Your organizational culture will guide your

↳ Decision-making methods

↳ Operating styles

↳ Internal communication patterns that shape the

↳ Employee experience

↳ Impacts performance

↳ Drives business outcomes

In short, your organizational culture will influence how your employees interact, make decisions, and unite to achieve common organizational goals.

Types of Organizational Culture

There are four types of organizational culture that you must know about. (I will touch base on these in detail in my upcoming newsletters). For now, here is what each type of organizational culture comprises:

1. Clan Culture: It emphasizes collaboration across teams and a horizontal structure.
2. Adhocracy Culture: It allows individuals to share ideas and encourages the company to take risks.
3. Market Culture: This type of organizational culture focuses on financial success and how each employee contributes to revenue.
4. Hierarchy Culture: This organizational culture emphasizes career paths and offers clear managerial processes.

You can select either one or more depending on your organizational goals, vision, and mission.

Still in doubt about organizational culture?

Keep reading to learn why it is important for your organization.

Why Organizational Culture Matters?

Because a strong and positive company culture can work wonders for your business.

Don’t believe us?

Picture this:

58% of employees would switch their jobs for a better organizational culture.

A weak organizational culture motivates about 43% of employees to leave their current job for a 10% pay raise.

About 74% of employees are demotivated by the poor cultural fit.

Think about it.

Reverse these stats by building a strong and positive organizational culture because –

↳ It will boost employee satisfaction; a happy and satisfied employee is less likely to leave your organization.

↳ It will ramp up their productivity. A happy and valued employee would give their 100 percent to your organization.

↳ It will give you a competitive edge. When prospective candidates see how employees in your organization are thriving and succeeding, they are likely to join yours over your competitors.

Remember this: In the current continuously evolving business environment, it is crucial to understand and embrace your organization’s culture.  

How To Cultivate an Organizational Culture?

Organizations must be intentional and strategic to build and maintain a strong and positive organizational culture. The culture that attracts and retains top talent and helps you win the talent war.

As we said earlier, talent management is no child’s play and requires finesse and knowledge of how to pull the reins and not let anyone slack, including yourself, the manager.

Here are 8 things you can do to cultivate your organizational culture:

1. Define your core values, vision, and mission in clear words. Don’t make it more than two lines, and it must clearly communicate what your organization stands for.
2. Lead by example and practice what you want your employees to follow. For instance, be available to your employees so they know they must also be available for anyone who has a doubt or needs help.
3. Encourage open communication in the workplace between you, your employees and among themselves.
4. Invest in your employees’ growth and development. Reason: In their growth, is the growth of your organization.
5. Publicly recognize and reward the valuable contributions of your employees; this motivates others to perform well. (And give them feedback in private)
6. Build a positive work environment. By that, we don’t mean you should mouth positive affirmations. What we mean is to create an environment where employees are encouraged to accept their mistakes, rectify them, and learn from them. They are not judged or ridiculed for their knowledge or lack of.
7. Encourage collaborations within teams and teamwork. Collaborations with different teams help each team learn more about what the others are doing and how they contribute to the common goal – organizational success.
8. Regularly assess your culture and keep evolving with time.

Remember: Your organizational culture is a magnet – keep it strong and positive to attract and retain your top talent.

Organizational Culture – A Perfect Magnet for Candidate Management

A strong and positive organizational culture is indeed a powerful magnet for prospective candidates. Here’s how it attracts and ensures your top talent sticks to your organization.

A strong organizational culture –

↳ Creates a brand identity that resonates with prospective candidates.

↳ Encourages an environment of engagement and empowerment – igniting an urge to work for an organization vested in its employees.  

↳ Is an indication of growth – when employees are happy, satisfied, trusted, and encouraged to take risks, they grow and in their growth, the organization grows.

What’s Your Role as a Manager in Organizational Culture?

As a manager, you can make or break your organizational culture. Here is what the numbers say about your role in influencing your organizational culture

About 76% of employees say managers set the tone for culture.

About 42% of employees feel leaders don’t contribute to a positive workplace culture.

About 66% of employees believe positive culture is due to their managers with exceptional leadership qualities.

A few core principles, such as integrity, fair treatment and no favouritism, approachability, and humanizing employees, displayed by the leaders, can greatly influence your organizational culture.

Conclusion

Organizational culture is not a separate entity from your organization. It is how your organization operates, interacts, and engages with every stakeholder – your employees, clients, and customers. In simple words, it is not about fitting in. It is about thriving together as individuals and as part of a larger enterprise team.

If you are struggling to hire the best resources for your team, connect with us to walk you through the process.