Hiring for cultural fit is all the rage right now. But is it justified?
- higher job satisfaction
- higher organizational commitment
- better work performance
- lower employee turnover
Still not convinced? Glassdoor analyzed the 2014 stock performance of 36 public companies from their 2009 “Best Places to Work” list and found they outperformed the overall market by 115.6%.
The ROI of creating a great company culture
The 36 public companies from Glassdoor’s 2009 “Best Places to Work” list includes a diverse group of companies such as Best Buy, Google, and Goldman Sachs.
This group’s average annualized stock return from 2009-2014 was 22.8% compared to S&P 500’s return of 14.1%. That means if you had invested $1000 into the market in 2009, you would have $2,210 in your pocket today. That’s pretty good. If you had invested in the “Best of” group you would have $3,470. Cha-ching.
In comparison, the lowest rated 30 publicly traded companies from Glassdoor’s 2009 list earned just 88.5% compared to the S&P 500’s return of 121% within the same time frame.
Why company culture matters for your hiring
A recent survey by LinkedIn found that dissatisfaction with company culture is the top 3rd reason why employees quit, even more important than dissatisfaction with compensation.
Company culture matters so much to employees that a Glassdoor survey of salespeople found that 71% of them are willing to accept a lower salary to work at a company with a great culture.
These salespeople are being smart because the data tell us that happy salespeople sell more: highly engaged salespeople are better at satisfying their customers and this engagement accounts for about 50% of the average value of upselling.
Top performing employees are always in high demand, especially in crucial roles like sales. In addition to offering great compensation and career opportunities, an amazing company culture is your unique selling proposition when hiring.
So make sure you include an assessment of your company culture in your hiring process and then hire people who are matched to it. Your employees – and bottom line – will reward you.
Want to see where you might be a great fit for a sales role? Take our 5 minute quiz and discover your unique selling personality at Selling IQ.
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