Indeed, 63% of Australian workers are leaving their job due to poor cultural fit, according to new research by Robert Walters.
A good cultural fit is particularly important given employers say the benefits lead to greater retention
of staff (81%), improved job performance (83%) and greater job satisfaction (79%).
“A staggering number of Australian employees are leaving their jobs every year because company culture does not match their own values,” said Robert Walters, managing director ANZ
, James Nicholson.
“While employers may know that workplace culture is important, an alarming number are failing at it in the eyes of their employees.”
In fact, staff turnover costs in the form of hiring and training can reach as high as 50-60% of an employee’s annual salary.
“Mismatches in cultural fit highlight the importance for a company to define and imbed cultural fit throughout all workplace processes,” added Nicholson.
The hidden cost of cultural fit forms part of a new whitepaper Are you culturally fit? from Robert Walters that examines its impact on both employees and employers.
It found that financial indicators are no longer the main draw card for prospective employees with 70% of workers choosing their job due to non-financial ‘cultural’ indicators including how performance is managed, level of teamwork and workplace flexibility.
“The age of the remuneration package as the key selling point is behind us. More important to prospective employees are the conditions of their employment,” Nicholson said.
“A company with a strong workplace culture has gone from a ‘nice to have’ to something that is now widely viewed by the marketplace as a competitive advantage”
Further findings include:
· 96% of employees believe cultural fit is an important factor when weighing up career opportunities
· However, 53% of Australian workers are misled about company culture during the recruitment
· 60% of employees have seen poor cultural fit lead to conflict within their organisation
· Employees in larger workplaces (68%) value cultural fit more than those employed in SMEs (62%)
· Women (71%) value culture fit more than men (66%)
Australians are struggling to fit in with the core values, attitudes and collective behaviours which are inherent in organisations.