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Hiring for Cultural Fit: How to Create A Happier, More Loyal Workforce

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Hiring for Cultural Fit: How to Create A Happier, More Loyal Workforce

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In this webinar, OnPoint Consulting Managing Partner Darleen DeRosa will guide hiring managers through the art of assessing employees for cultural fit—that intangible factor that often determines whether they’ll stay for the long haul or move on after six months.

In this webinar, OnPoint Consulting Managing Partner Darleen DeRosa will guide hiring managers through the art of assessing employees for cultural fit—that intangible factor that often determines whether they’ll stay for the long haul or move on after six months.

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Hiring for Cultural Fit: How to Create A Happier, More Loyal Workforce

  1. 1. Hiring for CULTURAL FIT: How to Create a Happier, More Loyal Workforce
  2. 2. Welcome to HIRING FOR CULTURAL FIT: How to Create a Happier, More Loyal Workforce Darleen DeRosa, Managing Partner dderosa@OnPointConsultingLLC.com | 203.533.5128
  3. 3. OBJECTIVES ● Understand why company culture is important and how to define it ● Learn how to assess candidates for cultural fit ● Understand the dangers of focusing too much on cultural fit
  4. 4. Culture tells us what to do when the CEO isn’t in the room, which, of course, is most of the time. -Frances Frei and Anne Morriss, Harvard Business Review
  5. 5. WHAT CULTURE IS A set of shared attitudes, values, goals, and practices that characterizes an organization
  6. 6. thinking, behaving or working WHAT CULTURE IS A way of
  7. 7. Zappos EXAMPLES OF CULTURE Requires employees pass a “cultural fit interview” and spend the first month manning phones in the call center to ensure they are focused on customer service.
  8. 8. “Businesses forget about culture and ultimately they suffer for it because you can’t have good service from unhappy employees.” -Tony Hsieh, CEO, Zappos
  9. 9. Southwest Airlines EXAMPLES OF CULTURE Choose to put employee happiness first, customer happiness second and shareholders third. Promotes examples of great service through videos and weekly shout-outs from the CEO
  10. 10. “Competitors can buy tangible assets, but they can’t buy culture.” -Herb Kelleher, Founder, Southwest Airlines
  11. 11. Why Is Cultural Fit Important?
  12. 12. 1. HIRING ● The cost of replacing an employee ranges from 50% to 400% of annual salary, depending on position. ● Simply put, it’s much easier to retain employees than hire new ones. Culture is a key component of attracting and retaining top talent.
  13. 13. 2. RETENTION ● Employees are more likely to stay when they feel fulfilled, decreasing the costs of recruiting, hiring and training. ● Unhappy workers cost U.S. businesses $450-$550 billion in lost productivity each year, according to a 2014 Gallup State of the American Workplace report.
  14. 14. 3. REPUTATION ● Companies with strong, distinctive cultures tend to attract more positive publicity and be perceived more favorably. Consider the response to REI, which broke tradition by closing on Black Friday 2015. ● In the age of social media, the voices of unhappy customers or employees can be amplified. Consider the open letter to the Yelp/Eat 24 CEO that went viral recently.
  15. 15. How Do You Define Your Culture? “Determining if someone fits the culture starts by defining the culture, not by defining the person.” -Lou Adler, author, The Essential Guide for Hiring and Getting Hired
  16. 16. AMERICAN EXPRESS BLUE BOX VALUES “At American Express, we have a mission to be the world’s most respected service brand. To do this, we have established a culture that supports our team members, so they can provide exceptional service to our customers.” 1. OUTLINE YOUR MISSION ● The CEO and executive team must spell out the company’s mission, values and strategic objectives.
  17. 17. PEP BOYS AND THE ROAD AHEAD When Pep Boys rebranded, it needed to update its employee competencies to align with a more customer-service oriented approach. It began to recruit employees with customer service backgrounds who were friendly, responsive and helpful. 2. TRANSLATE VALUES INTO BEHAVIORS ● Outline desired traits and behaviors that will support your mission.
  18. 18. THE ZAPPOS CULTURE BOOK Zappos employees write a culture book every year describing how they feel about working there and how they reinforce the company’s 10 core values. 3. COMMUNICATE DESIRED BEHAVIOR ● Be sure all employees understand what is expected of them. Communicate through handbooks, internal newsletters and through words and actions.
  19. 19. SOUTHWEST EMPLOYEE VIDEOS The CEO of Southwest Airlines gives a shout- out to one employee each week and highlights outstanding service through videos shared with employees. 4. REINFORCE BEHAVIOR ● Recognize employees for demonstrating desired behaviors and provide coaching when necessary.
  20. 20. NOT A FIT? WE’LL PAY YOU TO QUIT New employees at Zappos are offered $2,000 to quit after the first week of training if they decide the job isn’t for them.
  21. 21. Assessing Candidates for Cultural Fit
  22. 22. 1. Use a Variety of Assessment Tools
  23. 23. Behavioral Interviews Ask open-ended questions that reveal desired traits, such as leadership, integrity, ability to collaborate and problem-solving skills Ex: “Tell us about a time when you had to make a decision that was unpopular.”
  24. 24. Personality Tests Helpful in determining how the candidate is most likely to work with others, what motivates him/her and what work environment is necessary for success. Some tests can even be customized to map to cultural attributes.
  25. 25. Situational Judgement Tests Determines how the candidate is likely to respond to a variety of challenges in the workplace. Based on responses, you can infer how they would be likely to respond in real life.
  26. 26. Simulations Allows a hiring manager to observe behavior in situations the candidate is likely to encounter
  27. 27. Invite a group to be part of a panel that asks questions or facilitate casual interactions while waiting for the interview, over lunch, etc. 2. Involve Employees
  28. 28. Ex.: Zendesk’s “licorice test” offered candidates a piece of salty licorice to gauge their reaction 3. Use Unconventional Tactics Where Appropriate
  29. 29. A Note of Caution: When Culture Becomes Cult
  30. 30. We are hard-wired to like people who are more like us. A study by the Kellogg School of Management found job offers were strongly influenced by interviewer’s perception of cultural fit. Culture Can Be A Shield for Discrimination
  31. 31. Just because someone fits in and is likeable does not mean they are the most qualified candidate. Using objective, data-driven assessments can help you avoid snap judgements. Prioritizing Cultural Fit Over Competence
  32. 32. “Groupthink” stifles innovation. Look for candidates from diverse backgrounds who will bring a wide range of experiences and perspectives. Too Much Emphasis on Cultural Fit = Lack of Diversity of Ideas
  33. 33. Hiring people is an art, not a science, and resumes can’t tell you whether someone will fit into a company’s culture. -Howard Schultz, CEO, Starbucks
  34. 34. WRAP UP & QUESTIONS
  35. 35. THANK YOU! If you have any questions feel free to let us know. www.OnPointConsultingLLC.com | 203.533.5128

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