[ English Translation – View Original Article (French) ]
According to a study by Deloitte conducted in 2018, less than a third (28%) of executives report knowing about their corporate culture. The latter two-thirds of executives understand its importance but are unable to describe it.
If everyone agrees that corporate culture is important, why are some companies so reluctant to invest in it? The reluctance comes from it being often misunderstood, and hardly tangible.
Keep reading for some statistics and valid arguments to convince your managers that it’s finally time to invest in your corporate culture and rethink recruitment strategies.
What Exactly is Corporate Culture?
According to Kim Auclair of Niviti, “Corporate Culture encompasses all the values, rules, behaviours, norms and myths of a company. It allows you to create a strong identity, to move away from the competition and to facilitate the functioning of your organization.”
A company’s culture must be felt from the very first moment candidates send in their CVs. It must be integrated into the recruitment and organizational development strategies, cultivated through integration, training, performance management, and also during sanctions and dismissals.
If you step into a company where the corporate culture needs to be improved upon, employees do not greet each other, no one speaks to one another and the atmosphere is rather cold. Conversely, when the corporate culture is inspiring, candidates rush to your doorstep and employees stay loyal for longer.
Save Time: Cultivate Resumes Rather Than Chasing Candidates
The terms Inbound and Outbound used in marketing can also be applied to your recruitment strategies. They refer to efforts used to receive applications (Inbound) and the hunting of candidates (Outbound).
The advantage of Outbound is that you get applications quickly by contacting exactly the profiles you have targeted. However, it can be long, tedious and thankless to solicit people via LinkedIn when the majority leave your messages unanswered.
Inbound strategies require more time to start, but are more profitable in the long term. The greater your reputation and credibility, the easier it becomes to convince candidates to come and work for your company.
Build Employee Loyalty and Reduce Turnover
Employee recognition is not natural in all organizations.
45% of 2700 American workers revealed that they have not had any recognition at work in the last 6 months. Worse still, 16% of them have never received any recognition during their careers.
These alarming statistics are proof that there is a pressing need for organizations to reinvent their recognition and reward practices. New recognition software has emerged to address this new reality.
Investing in employee recognition helps to build employee loyalty and thus ensures the sustainability of the organization.
Increase Your Profits
When you organize team activities during working hours, it is easy to see it as an expense.
Suppose you pay for an activity for 10 employees, the price can be around $300.
It may seem trivial, but the bonds that employees will forge together, the “inside jokes” that everyone will talk about in the office for months, the new friendships that can develop… all these results will help you improve your organizational development practices, and therefore, increase employee productivity!
Let’s go back to the example of the $300 for the team activity. A recruitment agency will charge between 15% and 20% of a new employee’s annual salary. For an employee who earns $100,000 a year, it’s the equivalent of $15,000 to $20,000 for EVERY job! We can do a ton of activities that will leave their mark on the minds of many employees with such a budget.
In addition, a recent Gallup study mentions that companies with a strong corporate culture and committed employees increase their profits by 21%.
Find measurable statistics if you are not convinced of this investment:
- Turnover rate
- Time to hire
- Offer acceptance rate
- Number of departures in less than a year
- Number of hires, etc.
To simplify these calculations, there are HR software programs that allow you to collect data more easily than with an Excel spreadsheet so you can spend more time on team management!
Stand Out From The Competition
A strong corporate culture with well-defined values creates a dream. When I worked at GSoft, the employer brand was so attractive that several times I had candidates crying on the phone after an interview where they were rejected. Why? Because it was his dream to join the company.
In several sectors facing labour shortages, competition is fierce. Recruitment deadlines must be tightened and concrete arguments must be put in place to convince candidates to accept our job offers.
By having a corporate culture that differentiates itself from others, your attraction will be greater.
Finally, although there is no mention of corporate culture in labour standards, it is essential to attract or retain the best talent on the market. It saves you time, builds employee loyalty, increases profits and sets you apart from the competition.
Remember that each company has its own corporate culture. It is the people who make it up who define it and then contribute to its evolution.