During the hiring process within any industry, there are two important concepts (beyond the necessary education and experience) that are sought after: Cultural Fit and Diversity. Both of these concepts promise a strong healthy workforce for two different reasons and it has been repeatedly questioned how well they can coexist. After a brief overview of these two concepts, we look at one of the most popular methods of hiring, employee referrals, and decipher how referrals influence the level of diversity versus the level of cultural fit and how to keep a balance between the two.
The Contenders
Cultural fit is a sense of cohesiveness among employees and the company based on personality, lifestyle, values, goals, work habits and more. Candidates that show signs of being a “cultural fit” have long been attractive to hiring managers since sharing these sorts of similarities encourages a positive workplace, a friendly team environment and high engagement among the employees. Thus the concept of cultural fit leads to better retention and better work performance for the company.
On the other-hand we have workplace diversity which many companies are now proactively seeking to achieve. A diverse workforce means hiring a variety of people based on different ethnicities, races, ages, genders, sex, physical abilities and so on. There is now substantial evidence proving that companies who prioritize diversity outperform those that don’t. A major reason being that diversity brings different types of thinking and ideas to the table, which translates to higher levels of innovation and creativity. In contrast to cultural fit, diversity celebrates employees’ differences.
The Risk with Employee Referrals
Employee referral programs have always been a favoured method of recruitment since not only is it a faster and cost-saving hiring process but referred candidates come with an automatic reference and a realistic expectation of what it is like to work for the company. Statistics also show that the retention of referred employees is longer.
The one risk that comes along with employee referrals however, is that employees are more likely to refer candidates who are similar to themselves, since their social circle is more likely filled with people from similar backgrounds, schooling, ideologies etc. This means that employee referral programs have a tendency to bring aboard new employees who are a cultural fit but perhaps not adding to diversity. Even if the hiring company promises a larger bonus for culturally diverse referrals, employees will be looking more for physical differences rather than differences in ways of thinking and ideas, which is the real reason why diversity helps companies prosper.
Solutions
The first step to avoid the natural lean towards cultural fit over diversity through the use of employee referrals is to be aware of it. By keeping this tendency in mind while hiring, you are more likely to take the precautions to ensure that you are hiring a well-rounded body of employees who can contribute a variety of ideas, solutions and ways of thinking.
Another step that can be taken is to have a clear and solid idea of the mission, values and goals of the company. When achieving a cultural fit, you should be looking for a cultural fit with the companies’ own goals and values, and not just those of the current employees.
Employee referral programs are still very effective, but those who are referred should go through the exact same hiring process as those who are not referred and action should be taken to remove any indication that they were referred when looking at applications and making final hiring decisions. In doing this, you can truly ensure a well-balanced workforce where diversity and cultural fit work in harmony.
