In a tight labor market, companies naturally open their doors to new employees. However, it’s equally important to keep the “back door” closed if you want to ensure the continuity of your business and grow for the future. This can be achieved by fostering a values-driven and lasting company culture. In other words: make it sticky. So that employees stick around with pleasure. But how do you do that?
A Different View on Work
Organizations that leave a lasting impression are more than just places where work gets done. Employees find fulfillment, purpose, and meaning there. The desire for these elements in our work is becoming increasingly urgent. Today’s employees expect their employer to contribute meaningfully to their personal development.
In addition, there is a shift from work-life balance to work-life integration. In the former, we try to balance two fundamentally separate worlds, switching between one at work and another outside of it. Work-life integration, on the other hand, acknowledges that work is an undeniable part of our lives, flowing into all areas. It is no longer something that can be placed in opposition to our “private life.” This shift has become particularly noticeable since the pandemic. During that time, work literally spilled over into private life, and vice versa. But people also had the space and time to slow down, disconnect, reflect, and question their work, especially how they do it.
The result? A professional exodus or the Great Resignation. In 2021, the global quit rate increased by 18%, the highest recorded value to date. One in 160 people gave up their permanent job. This marked a drastic change in how we think about work.
Values Over Conditions
Research shows that as many as 62% of young employees (ages 18-34) value company culture more than salary. Additionally, 42% seek other opportunities if the company’s values don’t align with their personal values.*
It’s, of course, difficult to offer a one-size-fits-all solution. Generational divides are tricky too. But these figures suggest that Millennials and Gen Z are quicker to communicate about values, place more importance on organizational culture, and are faster to judge the quality of an employer. However, a good balance between conditions and values is essential for attracting employees, even for older generations. It’s notable that this focus shifts more towards values the longer employees stay with a company.
In other words, when the conditions are right, companies with strong organizational cultures and values win out, succeeding in opening the front door while keeping the back door closed.
War for Relevance
The reasons employees leave today aren’t just financial. They also include limited career development opportunities, indifferent leadership, a job misaligned with their values, a lack of team spirit and flexibility, and insufficient attention to well-being.**
With this in mind, it’s wise to rethink traditional recruitment strategies and make room for a different approach. One focused on relevance: think about what it takes for the right people, in terms of both talent and cultural fit, to want to join your organization. So, don’t make it a war for talent, but a war for relevance. This will make your company culture much stickier.
A Few Crucial Steps to Stickiness:
Understand your own culture:
Is it clear, both internally and externally? Conduct gut checks by comparing management’s ideas about the organization with those of employees and key figures. This way, you gather not only your people’s opinions and experiences but also identify friction points.
Clarify your values:
Ask whether they help in decision-making and lead to desired behaviors. Make an 80/20 proposition: 80% focus on what your company is and does well, 20% on what’s still possible.
- Invest in a lasting policy:
It’s essential for leaders and role models to embody company values, but even more important: help every employee see the importance of their contribution, highlight values-aligned behavior, and connect their work to the bigger picture. In other words: recognize and acknowledge what you see in your employees, no matter how big or small their contributions are. This way, you establish a lasting policy at all levels. - Identify your friction points:
Be alert to friction points where behavior, processes, beliefs, or experiences contrast with the (desired) organizational culture.
A Few Examples of Friction Points:
- People want leaders to focus more on supporting and growing team members, rather than putting out fires themselves. But leaders are often evaluated solely on production figures.
- You want to encourage more ownership and initiative in a team, but the team leader is a controlling micromanager.
- A construction firm rightly focuses on safety regulations for their workers, but turns a blind eye when architects or contractors ignore the rules.
In short, a sticky company culture not only keeps your back door closed, but also optimizes your intake. In other words, you achieve a better match with new employees who align more closely with your company culture, meaning they’ll stay longer.
*Source: Deloitte 2022, Glassdoor 2019 and 2023
**Source: McKinsey 2022, Great Attrition
Article written by Rob Hendrickx, CFR Global Executive Search Belgium
Photo source: Unsplash