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Over the past 5 years the importance of the “High Growth Business” and how this relatively small group of businesses disproportionally impa...

Friday, 18 July 2014

How a Strong Culture Improves Your ROI with New Recruits

How a Strong Culture Improves Your ROI with New Recruits
How Strong Is Your Business Culture?
Over the last couple of weeks I've had a number of discussions about how to integrate new people into a business, or "onboarding" as the Americans term it.  Where discussions got interesting was how a business’s culture or lack of it, influenced the speed with which new staff became integrated.

So how does culture influence post recruitment integration and what else if anything will have an impact? My experience with high performing businesses has confirmed the importance of culture in the process. The reason for this is that taking on new staff can be seen as the key battleground between the existing culture of the business and the culture of the new hire. The stronger the business culture then the more influence it will have and either the new hire will integrate quickly or leave.  Those with a strong culture will quickly show new starters that they will not be able to change or modify the culture. This can be seen most obviously in the military where new recruits have no input at all and must submit completely to the prevailing culture.

Those, however, with a weaker cultural tradition will have greater difficulties in getting new hires to conform, resulting in increased costs of integration and greater disruption to the business as new hires continue to argue their corner.  This is because those businesses with a weaker cultural tradition will have greater difficulty in persuading a new hire to conform to the way they do things, mainly because they don’t have clear processes or a strong philosophical underpinning as to why things are done in a particular way. Faced with inconsistencies and often contradictory assertions of the recruiting business a new hire with a strong personality may be able to readily persuade existing staff members that they have a better way. This state of affairs can easily upset existing settled staff who were happily doing things the “old way”.

Nevertheless, culture on its own will not do the job, although it helps by clarifying your approach. Just as important, however, is having a good description of not only "why we do the things this way" but also "how we do things here". I describe it as the big colouring book for your business. You might call it an operations manual or a knowledge bank. Whatever you call it having a written process is infinitely better than a verbal explanation.

There are two key reasons for this, first people tend to argue less if something is written down. It gives the words a level of gravitas that is seldom achieved with the spoken word. Second, is it allows the new staff member to try things out without the same high level of reliance on, interaction with, and consequent disruption of existing staff when you are reliant on verbal communication.
If, therefore, you are embarking on, or are indeed in, a period of high growth the strength of your cultural values and your ability to create a written operational manual will be significant factors in integration of new people and therefore your ability to maintain your growth.

Exigent Consulting provides specialist services for Managing High GrowthBusiness Turnaround, and Mentoring to the Small and Medium Business. We help business owners improve the profit performance of their business. 

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