Build great Teams – People management

Cost Of Cultural Fit

Cost Of Cultural Fit

Make sure the people you hire are the right fit for your company to reduce cost in the long run. Each time you recruit and hire someone it costs you and your company time, energy and money.

Repeating the process because you hired someone who didn’t fit will cost you until you find someone who can contribute positively to the company. If someone who doesn’t fit stays, you will have to expend energy to get them doing what you’re paying them to do. Let’s look at how cultural fit affects time, energy and money.

Cost in Time

It costs you time to recruit an employee. If you use an agency to recruit staff, it costs time to communicate to the agency what you’re looking for. If you don’t use an agency, it costs time to write a job advertisement and get that advertisement somewhere visible. All the stages in the recruitment funnel require your time. It costs time to interview candidates and to deal with the administration involved to get someone hired.

Once hired it will cost you or other people in your company time to do induction. It will take time for the new hire to start working productively within your company (on average up to 28 weeks).

If you hire someone who is not the right fit, it may also cost you a lot of management time later. You will have to handle performance and productivity issues. In the end it may also cost you time to move someone out of your company. Time to follow the correct procedures. Possibly you will spend time with HR professionals or even lawyers. If that happens, you then have to start all over again spending time to recruit and hire a replacement.

It may cost you time to rebuild your team when a new person joins. Productivity may drop while the whole team adjusts to a new team member. It may also cost you management time if team morale drops if someone you hire doesn’t fit. You’ll have to spend time getting the whole team working well again.

Cost in Energy

The entire recruitment process requires a significant investment of energy. Once hired, you will need to expend energy getting the new hire settled. You’ll want to keep them engaged from day one. You’ll need to spend energy setting goals and coaching them as they get up to speed. Finally you’ll have to review them at the end of their probationary period. It will cost energy to get other team members energized to work with the new hire through the induction period. Someone will always have to be answering questions and checking how things are being done. If that’s not you personally, you’ll have to inspire someone else to do it. They may see it as a burden.

If you hire someone who is not the right fit, it may also cost you a lot of management energy later. You will have to spend a lot of energy to handle performance and productivity issues for that individual. The new person may negatively affect how the whole team works. In that case you will have to spend energy to handle performance and productivity issues for the team as well.

Cost in Money

It costs the company money for agency fees if you hire via an agency. If you manage recruitment yourself, it costs the company money for advertising. It may also cost the company money for training costs once the person comes on board.

If the person you’ve hired does not fit, it may also cost you financially due to their lower productivity. It could also cost you money to move someone out of your company, especially if you have to engage an HR professional or a lawyer. If that happens, you then have to start all over again spending money to recruit and hire a replacement.

Anything that costs you time also costs you money. That’s time you could be spending doing something else that will have a more positive financial impact of your business.

Cultural Fit Matters

So if we agree that getting people who fit well within your company matters, how do you make sure it happens? This article will tell you more about how you can hire people who fit.

My Question To You

Have you ever worked out how much it costs you to hire someone? Have you ever employed someone who didn’t fit – how much did that cost you? If this is something you would like to discuss or would like some help with, contact me at nikki@mulberrybushconsulting.co.uk. You can also buy my book Accelerate to Team Success which is available as a paperback or on Kindle.

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About the Author:

Nikki Faulkner photo Dr Nikki Faulkner founded Mulberry Bush Consulting to work with business leaders and their teams to make the 'People' side of their business as effective as possible. Mulberry Bush Consulting's specialty is helping small businesses who are new to having employees and helping businesses who are growing rapidly and increasing their employee-base at a rate that is creating a significant challenge.

You are not alone and we can help.

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