Culture—the collective attitudes, behaviors, and values of your workforce—is one of the most important characteristics of any business. For SMBs, building and maintaining the right culture is especially crucial, as every person on your team has a tremendous impact on your company’s success.
In a recent Employ survey, 63% of SMBs reported difficulty finding high-quality candidates, highlighting the persistent challenge of hiring the right talent. This challenge only grows if you risk hiring an individual whose values, attitudes, and behaviors are misaligned with the culture you’re trying to build.
Here are five compelling reasons why hiring for culture is a must for every SMB, and a few strategies that make it easier to employ ideal individuals:
1. Poor Cultural Fit Can Be Contagious
Just as one exceptional hire can positively influence a whole team, an employee who conflicts with your cultural values can have the opposite effect. That person can spoil team engagement and impact everything from team decision-making to problem-solving and innovation.
In larger organizations, an employee who is a poor cultural fit may not be as noticeable, but it’s almost impossible to overlook the impact of that same employee on a small team. And if the problem persists long enough, you may need to consider adjustments at the team level vs. focusing solely on a single employee.
2. Small Teams Lack Redundancy
Unlike large organizations, SMBs rarely have multiple backups for each position. Everyone on the team must consistently put forth their best effort to keep the business moving in the right direction.
If just one person behaves in a way that contradicts cultural norms like transparent communication, teamwork, and accountability, the ripple effect can be felt throughout your entire organization. Furthermore, if you need to replace that person, the rest of the team will have to carry the additional workload until the position is filled.
3. You Could Lose Your Best Employees
Nobody wants to work in an environment that doesn’t align with their vision of what company culture should be. High-performing employees who embody your values are no exception; they may feel motivated to leave if they see the culture being eroded by one or more other employees.
In fact, one survey found that a toxic or negative work environment was the number one reason employees chose to leave their job in 2023. Instead of remaining in a negative environment, your best employees may seek opportunities in a company they feel is a better cultural fit.
4. Culture Fit is Equally Important to Candidates
Fortunately, your future employees value culture fit as much as you do. According to a Glassdoor survey, 77% of people consider a company’s culture before applying. When you and your candidates are looking for a mutually satisfying cultural fit, you’re both more likely to ask questions to assess whether that fit truly exists.
5. The Cost of Hiring a Poor Cultural Fit is High
According to Gallup, the cost of replacing an employee can range from one-half to two times their annual salary. For small and medium-sized businesses, such a figure could represent a sizable chunk of your operating budget. But the cost of replacing a bad hire goes beyond the financial. It could also potentially lead to:
- Disruption in team deliverables
- Lower employee productivity
- Negative impact on customers
- More time spent on recruitment
Tips for Achieving Culture Fit in the Hiring Process
Hiring for cultural fit requires attracting individuals who share your values and have the potential to enrich the existing culture as your business grows. Taking the following actions can help you achieve this goal:
- Discuss company culture during interviews and ask questions that help you understand candidates’ values and way of working
- Involve other employees in the candidate assessment process—for instance, by arranging meetings between candidates and team members who can provide tangible examples of how the company culture operates
- Welcome new hires with onboarding that makes room for opportunities to connect with your culture
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