Sydney—Corporate Australia is putting greater emphasis on finding highly skilled candidates who possess strong ethics and integrity however, according to a new report released today by HR consulting group, DDI Australia, most organisations admit to struggling with making ‘good cultural’ judgments during the recruitment process.

Considering the importance of values, integrity and ethics in the workplace, the DDI research study titled, ‘Recruiting for Culture Fit’ examines the practices of hiring managers in 200 Australian organisations and looks at why such skills - considered as critical as experience and knowledge - are not being assessed with the same thoroughness.

“Ten years ago, qualifications and a technical skill set were the core fundamentals for a successful candidate,” said Dr Bruce Watt, Managing Director – DDI Australia. “However, as the business environment becomes increasingly complex and traditional job parameters continue to blur, cultural fit is now being recognised as a necessity.” Remarkably however, while respondents in the DDI ‘Recruiting for Culture Fit’ study recognise the importance [90%] of hiring for cultural fit, only 36% do so with all hiring decisions. Respondents to the DDI survey cited time pressures and lack of available tools, skills and resources as the top reasons for not properly assessing cultural fit.

Nearly 50% respondents admitted that a reasonably, but not entirely, suitable candidate in relation to cultural fit was a better option than starting the whole recruitment process again. “It is fair to say that accurate employee decisions are being compromised by the hiring manager’s gut feel [74%],” said Dr Watt.

The research confirmed what many HR practitioners know, that the majority of poor recruitment decisions can be attributed to poor culture fit decisions. However, despite the acknowledgement that culture fit is important, many organisations do not regularly assess for fit because they don’t know how [78%].

“Our research shows that it is not uncommon for candidates to be invited to after-work drinks by prospective employers as a way to determine potential cultural fit. While this may seem like a progressive assessment method, it does not measure, on any level, an individual’s ethics and values; the fundamentals and essence of an organisation’s culture,” he said.

According to Dr Watt, better systems and training are now on the critical development list for those in charge of the organisation’s human resources capital. “Getting it right the first time ensures business continuity and most importantly avoids the considerable costs associated with wrong hires,” Dr Watt added. The impact of poor cultural fit decisions is resounding and significant. Poor hires cost time and money and they impact negatively on staff morale, performance and productivity.

Some of the most comprehensive methods used to assess for cultural fit include:

• Behavioural interview questions specifically targeting values;
• Panel interviews [using multiple interviews to assess fit];
• Reference checking against values;
• Informal meetings with colleagues/team members
• Behavioural simulations.

“At a time when many of us are still reeling from the indiscretions of companies such as OneTel, HIH and Arthur Anderson, the importance of culture and values has never been greater. Despite widespread recognition of the importance of values and culture, DDI’s research shows that many companies do not assess for fit or employ methods that may deliver the best outcome."

“Ensuring congruence between individual and company values makes commercial sense. Companies need to adopt more rigorous systems and processes, supported by effective training for all hiring managers,” Dr Watt added. Other interesting finds from the research included:

• 63% of respondents believe that hiring managers are in too much of a hurry to adequately assess for culture fit
• Around 50% of respondents believe that tight labour markets force hiring managers to ignore culture fit during the recruitment process