In cases where the qualifications of two candidates for the same job are roughly equivalent, cultural fit can be a deciding factor.
Lack of cultural fit is one of the biggest contributors to the failure of newly hired and promoted managers and executives. Among the reasons new leaders do not succeed is they currently do not match the company’s culture. Cultural fit usually cannot be developed the same way as job skills that may be lacking. In cases where the qualifications of two candidates for the same job are roughly equivalent, cultural fit is a deciding factor.
Some companies almost ensure the failure of newly hired and promoted managers because they have an unrealistic or outdated understanding of their culture. If a company is experiencing a higher-than-usual failure rate for newly hired and promoted managers, they may be hiring and promoting people based on an erroneous perception of their culture.
The substantially reduced grace period newly hired and promoted employees have today is also adding to the failure rate. In a healthy economy, employers usually give new workers about six months in which to perform, but that window has been cut by about half today. New leaders must understand organizational expectations and produce results immediately. Employers want to quickly see confirmation they made the right hiring or promotion decisions.
With the issue of cultural fit arising more often, a number of organizations are experiencing The Five Facets of Cultural Fit, according to ClearRock. The components of proper cultural fit are:
Clarity – Clear Understanding of Culture: An organization must be clear in communicating the mission, values, goals, and expectations of engagement at all organizational levels.
Relevancy – Understanding Must Be Relevant and Current: The understanding of the organization’s culture needs to be relevant and current. It must encompass the numerous changes that many employers have experienced during the recession and recovery.
Based on Reality – Perceptions of Culture Must Be Realistic: Recruiting and attracting the types of individuals who will succeed in the organization requires that marketing, job descriptions, and the interview/hiring process must accurately reflect the reality of its culture.
Consistency – Cultural Fit When Hiring or Promoting Must Be Consistent: People hired from outside or promoted from within the organization must presently match its culture.
Time For Adjustment – New Leaders Need Period of Adjustment When On-boarding: New hires and recently promoted employees need a guided period of adjustment during which they learn the dynamics of the organization’s culture and how to be successful in it.
Lack of cultural fit and the absence of an on-boarding period of adjustment are 2 of the top 5 reasons why 4 out of 10 executives fail in their jobs within the first 18 months, according to a study by the Center for Creative Leadership. The top 5 reasons why the new leaders do not succeed are:
Companies can help them fit in better by providing them with on-boarding counseling in which they receive a guided period of adjustment. New leaders need a strategic, formal process to assimilate them into the organization. During on-boarding, newly hired and promoted employees learn what their duties are, what is expected of them, and the dynamics of the organization’s culture.
Coaches can also show new hires how to establish and build strong relationships within the context of the organization’s culture, formulate a development plan, determine how they are being perceived by others, and assist with long-term planning and career management.
