Blog/Industry Trends and Insights

What’s Cultural Fit Hiring Strategy? (Benefits & Challenges)

June 3, 2024

15 min read
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Ever hired someone who looked perfect on paper but just didn’t fit in? Don’t worry, you’re not alone. A whopping 89% of the bad hires stem not from a lack of technical skills but from poor cultural fit

As a hiring manager, your top priority is to hire the right talent for your team. Pick the right bunch, and your company could go places. Get it wrong, and it could cost your company a whole lot of money, time, resources, and in some cases, even a bad reputation.

But, it’s easier said than done. 

While gauging technical skills is usually straightforward, finding the right cultural fit is a tad bit harder. Often, it is neglected in the hiring process. Assessing a candidate on cultural dimensions is as important as evaluating their core skills. For example-

  • Are they proactive and self-managed, or do they need to be micromanaged? 
  • Are they open to feedback? 
  • How do they handle conflicts? How do they behave under pressure?

The good news is, if you know what to look for, finding your purple squirrel is not a herculean task. In this Skima Insight, we will get to the roots of 

  • What’s culture-fit? 
  • How you can find a talent who ticks both skill-fit and culture-fit criteria? 
  • The tricky parts involved in hiring a cultural-fit candidate

What’s Cultural Fit?

Cultural fit refers to how well a candidate's attitudes, values, and behaviours align with the core values, mission, and working style of a company. 

It's about finding candidates who have the right skills but also align with your company's beliefs, values, and overall culture.

For example, if your company prioritizes teamwork and collaboration, someone who works as an IC (Individual contributor) and prefers to work in silos might not be the best fit. Similarly, if you are a legacy company that follows a more formal and structured approach to things, someone who is used to the casual and laid-back environment of young startups may find it challenging to adjust.

Think Company Culture And Hiring For Culture Fit Is Only For The Big Leagues? 

Not quite. On Shark Tank India, Anuva Kakkar, the founder of Tiggle, made a great point that even in a team as small as nine, culture is key. She said this in response to Peeyush Bansal’s quip about the presence of culture in a small setup like hers.

Peeyush’s remark highlights a common misconception that culture and culture fit concerns only bigger companies. 

Whether big or small, every company has its own culture, and finding people who gel with their culture helps companies succeed. 

How Are Cultural Fit And Diversity Different?

Cultural-fit and diversity are both crucial for a well-rounded team. In fact, culture and diversity should work together hand in hand. And as a recruiter, you must make that extra effort so one doesn’t come at the cost of the other.

So, what exactly is the difference between the two? 

Cultural fit is about evaluating how effortlessly new hires will blend into the existing work environment, whilst diversity is about ensuring that people from a range of backgrounds, perspectives, and experiences get equal opportunities at your organization. 

But there are certain nuances involved with cultural-fit strategy; continue reading, and you’ll know more about them.

For now, just understand that striking a balance between cultural fit and diversity is crucial. The idea is to build a team that's both diverse and culturally aligned. This way, you can tap into different perspectives and skills, creating a cohesive group that works well together and achieves great things.

What Is The Difference Between Culture Fit, Culture Add And Value Add?

Culture Fit, Culture Add, and Value Add – these three terms may sound similar, but they each contribute uniquely to your hiring strategy. 

Simply put, 

  • Cultural fit is about assessing the compatibility between the candidate and the company in terms of how aligned are their values, working style, vision, and mission.

    The focus is on getting employees to adjust well to the existing culture. Candidates who are a good culture fit are likely to stay longer with your company and perform better. Don’t believe us? Employees who don’t like their organization’s culture are 24% more likely to quit.

  • Culture Add, on the other hand, refers to the unique contributions and perspectives that new employees, who are culturally fit, can add to the mix.

    It’s like pushing the boundaries and making the culture even better. It is necessary for culture ‘evolution.’

    For example, hiring someone from a large enterprise in a startup to streamline communication and processes and interoperability between teams.

  • Value Add candidates fall under culture add, and specifically focus on hiring candidates who have overlapping value systems, but they might also have additional sets of values, and work ethics, which can further help improve not just the value system of the company they are being hired at, but many other aspects.

    For example, let’s take a hypothetical case wherein the existing values in an organization are those of trust, integrity, high accountability, self-management etc., but the entire team is composed of only male executives. Hiring a CEO who already has all these values, but also understands the importance of having gender diversity in executive positions could be a good value add to the organization.

How Can Hiring For Cultural Fit Help Your Company?

Cultural fit hiring approach could be a good way to the foundational pillars of a happy and a high-performing organization that cares about employee well-being. Of course, if it is the only strategy, it may backfire (we talk about it in the challenges section). But when it is leveraged alongside, skill-based hiring, DEI focused hiring, proactive recruitment strategies, creative recruitment strategies, etcetera, then it helps you tap better talent for the organization. Here's how-

  1. Cultural-Fit Hires Often Mean Happier Employees And That Morphs Into Better Performance

    Did you know, your employees are 13% more productive when happy?

    Well, why not?

    When employees feel comfortable at the workplace and are on the same page with the company’s values, they’re motivated to perform better.

    An average person spends 81,396 hours at work over a lifetime. That’s more than 40 years of work. So, it’s only natural that they want to spend that time in a positive and supportive environment.

    When employees fit well with the company culture, it results in a workplace where everyone feels valued and understood. This sense of belonging boosts morale, allows collaboration to flourish, and creates a supportive workplace where employees are willing to go the extra mile for each other. 

    "When you're surrounded by people who share a passionate commitment around a common purpose, anything is possible.”

    This quote by Howard Schultz, former CEO of Starbucks, perfectly captures the essence of a supportive company culture. 

    And let’s be honest, who doesn’t want to work in a place where people are genuinely happy and care for one another?

  2. Cultural-fit Hiring Strategy Yields Better Employee Retention

    After all, no one likes to be a part of a workplace that fills them with existential dread. In fact, recent research from MIT found that health and happiness at work is not an afterthought, but rather a driving force in an employee’s decision to take, stay at, or leave a job.

    We agree. The expectations between an employee and an employer need to match. And that starts with building a healthy environment that’s not just on paper but is also a reality.

    Today’s workforce comprised largely of Millennials and Gen Z, is much more concerned about cultural fit and alignment with personal values. They seek workplaces where they feel like they belong and can make a meaningful impact. 

    By hiring for cultural fit, you can not only improve productivity but also open doors to welcome and retain top talent. 

  3. You Save On Rehiring Costs With A Cultural-Fit Hiring Approach

    Do you feel like you're stuck in a never-ending hiring loop? You hire. They don’t perform. They’re either fired or resign. And the loop keeps repeating?

    Hiring for cultural fit minimizes employee turnover and, in turn, reduces cost per hire. Think about it - less time spent on training new hires, less money spent on recruiting replacements, and more stability within your company. It’s a win-win! Plus, with a team that’s in it for the long haul, you can focus on other important things instead of rushing to fill vacancies.

  4. Having The Cultural-Fit Approach In Your Hiring Strategy Basket, Helps Boost Employer Branding 

    Word-of-mouth is a powerful marketing strategy. When your employees are happy and are on board with company values, they become your best advocates. Your employer brand soars north. They will talk positively about their work, share their excitement with others, and attract like-minded talent to your company.

    A strong employer brand built on a foundation of shared culture and values can set you apart from the competition. It shows that you’re not just about business but also about creating a fulfilling workplace. That’s the kind of company people want to work with and work for. So, go for it.

How Do You Hire For Cultural Fit?

Are you wondering- 

  • How does one find that culturally fit candidate?
  • What questions must you ask or how to assess cultural fit in an interview? 
  • How do you know what the candidates are truly like until they start working?

There is no exact formula to determine a cultural fit candidate. Sorry to burst your bubble. But there are a few things you can keep in mind. The next section of this Skima Insight expands on the tips you can follow to ensure your next hire fits in perfectly with your company culture.

  1. Clearly Define Your Company Culture and Values

    First things first, you have to clearly define your company culture. For example, find answers to the following-

    • What’s important to you as a company?
    • What are your core values? 
    • What kind of culture do you want to promote? 
    • What kind of leader does your boss want to be known as? 

    These are the guiding principles that will govern decision-making, behaviour, and interactions within your company.

    You could also consider involving your team in this process. So, everyone is on the same page and has a voice in shaping the company culture. There’s nothing that an open dialogue with your employees can’t solve. It can bring out key values and behaviours that match your company's mission, vision, and long-term goals

  2. Talk About Your Culture Wherever You Can

    • Strong employer branding can be pivotal. What’s important to your company should also reflect on your website and social media. This lets you inadvertently attract more candidates who are a better culture fit for your company.
    • Take it a step further. Ask your employees to talk about their experience on platforms like LinkedIn/Glassdoor/Leap Club, or any other professional platforms. 

      If you can, convince your CXOs to publish thought leadership articles on LinkedIn and media spaces. This is a great way to promote company culture and showcase what it could be like to be a part of your company.

    • Plus, ensure your job listings talk about your company’s culture (avoid over-emphasizing it). This way, candidates seeking those jobs have an idea of what they’re getting into with you.
  3. Ask The Right Questions During The Hiring Process

    There's no single candidate questionnaire you can refer to when hiring for culture fit, but these questions may help get more clarity about the candidate. Ask them-

    • About a time when things didn’t go as planned, and the candidate and their team failed to deliver. How did s/he handle it?
    • About a time when the candidate helped their team/company overcome a challenge. What was the challenge, and how did the candidate address it?
    • Has the candidate ever felt underprepared for a task at hand? If yes, what did the candidate do to address it?
    • Has the interviewee ever come across a situation at work where the candidate felt the need to change their behaviour or perspective? What prompted this realization, and how did the candidate go about it?
    • About a time when the candidate received a critical feedback. How did the candidate respond, and what changes did the candidate to bridge gaps?

    These questions reveal a lot about the candidate’s attitude, working approach, proactiveness, dealing with challenges, creativity, resilience, and value system. So, don’t be afraid to get creative with your questions! Sometimes, unconventional questions can reveal more about a candidate’s personality than conventional ones.

  4. Put Things To The Test

    Talking about cultural fit is one thing. But putting it to the test is a whole different ball game. Once you've lined up your potential candidates, it's time to see how they fare in real-world scenarios.

    It is not uncommon to ask potential employees to participate in team challenges or trial projects (if possible, ensure it’s a paid trial). Although it does come at the cost of being seen as "too much," you're better off safe than sorry. So, invite prospective leads to spend a day at your office. Let them experience it firsthand. This will not only give you a peek into the candidate's abilities but also offer you a glimpse into how they'll fit at your workplace.

    Another way to do this- make probation periods mandatory. This way both involved parties can see if it’s a good fit, both culturally and in terms of role expectations. 

  5. Get To Know Them On A Personal Level

    Once you’ve assessed their skills and talents, try getting to know them a bit more. Firstly, this breaks the ice, and it also tells you what the candidate is really like.

    For example, 

    • Ask them about their hobbies or interests outside of work. What someone does beyond work is reflective of their personality. Do they hike, paint, or play a sport? (Pro tip: The next time you're organizing a sports day, you'll know who to fall back on!

      This also helps build rapport. Knowing their personality gives you insight into how they might fit in with your team.

    • Ask them about their proudest achievement, work-related or personal. Create a space for them to share what they deeply care about. But remember, to cross that bridge, you also have to open up. Share something about yourself or your company to encourage them to do the same. Communication, after all, is a two-way process. You give some, you get some.

The Tricky Side Of Hiring For Culture Fit

Getting cultural fit hiring strategy right might seem easy at first. But avoiding bias and discrimination in the hiring process is actually pretty tricky. Here are some key challenges:

  1. Diversity, Equity, and Inclusion (DEI) Takes A Hit

    Focusing too much on cultural fit can result in a team where everyone thinks and acts the same. That does more harm than good. Diversity allows for innovation and creativity to flow, so it is important to balance cultural fit with DEI goals. The idea is to build a more inclusive workforce where different backgrounds and perspectives are valued.

  2. Prone To Bias

    Deciding who fits our culture is a pretty subjective matter. Personal preferences and gut feelings can easily sneak into hiring decisions. 

    We're all humans, at the end of the day. 

    You know, like being in a situation where you wanted to hire someone just because they went to the same college as you? Or because they were from your hometown? There's a need to steer clear of that.

  3. The Homogenous Talent Pool That Lacks Innovation

    When everyone in the team shares similar backgrounds and experiences, the range of ideas and solutions becomes limited. This homogeneity can lead to an environment that lacks innovation and creativity. Without diverse perspectives to challenge conventional thinking, your team will struggle to think out of the box.

    Hiring for cultural fit isn’t about finding clones of yourself. So the next time you're recruiting, remember, 'variety is the spice of life.'

Use Skima AI To Hire Culturally-fit Candidates

Skima AI is a SaaS HR tool for top-performing recruiters. It helps you with 3 things (number 3 is our core USP)-

Create Job Descriptions Optimized For Maximum Candidate Engagement

There are certain nuances associated with creating amazing job descriptions that draw in maximum candidate activity. For instance, short job descriptions (300 words) perform better than longer counterparts. Those who detail more on compensation, roles and responsibilities, and candidate performance metrics, receive better responses than those who don’t. Also, 28% of the candidates do look at cultural aspects of an organization in the job description.

Our AI Job Description Generator takes cognizance of all these minor nuances to generate stellar job descriptions for you and get you the best outcomes in terms of attracting candidates.

Streamline Job Posting Management

Once you have the JD ready, you need to post it on a zillion platform. Tiring work, right? Well, with the extensive set of integrations available with Skima AI, we help you with job posting workflow automation, wherein you can integrate with all the major applicant tracking systems (ATS) to not just automate your job creations, but also fetch applicants’ resume at scale to do the magic Skima AI is built for— resume intelligence.

Find The Best Candidates With Skima AI Resume Screening

Ever seen a hummingbird sipping nectar? How it hangs in the air fluttering rapidly to stay steady, with incredible precision and agility, an unhindered focus on extracting the nectar from the flora. It’s such a delight to what the grace with which hummingbirds do this. Our state-of-the-art in-house AI algorithm parses resumes with even better precision and accuracy, paying attention to extracting insights about the candidates. This is our core USP and the best gift we have for you recruiters. It’s better than any other resume screening software in the market, and has the most extensive set of features as well, including diversity filters to spot the diversity fit hires.

Try out Skima AI today, and raise your hiring game! Subscribe to our insigths if you find this helpful. 

Happy recruiting!