Culture Fit vs Culture Add: Transforming Company Culture for Growth

Posted by Mai Hoai Thu on

The rapid pace of change in today's business environment means that organisational cultures need to be more adaptive and resilient than ever. Companies that can create cultures that embrace change, foster innovation, and prioritise employee well-being are likely to be better positioned for success in the future. 

So, step aside “culture fit” and say hello to “culture add.” 

Read more:Why TRG Is Building A Coaching Culture and Why You Should Too 

Contents

Culture Fit vs Culture Add: Transforming Company Culture for Growth

The evolution of workplace culture 

The rise of culture fit 

The concept of workplace culture has undergone significant changes since the 1950s. Initially, the focus was primarily on skills and reliability. 

However, as organisations recognised the importance of teamwork and productivity, the idea of "cultural fit" emerged. This approach aimed to build office cultures where employees got along well, boosting each other's productivity. 

Cultural fit became a revolutionary concept in its day. Companies began hiring individuals whose personalities matched the current team, reducing workplace conflicts and increasing empathy. The goal of this shift in hiring practices was to establish a unique "office culture" that stood apart from regional, religious, or ethnic backgrounds. 

The emergence of culture add 

As the business landscape evolved, so did corporate culture. Technological advancements and changing workforce demographics pushed businesses to become more adaptive and inclusive. The traditional top-down approach gave way to a more collaborative and agile working environment, enabling employees to voice their opinions and contribute to decision-making processes. 

Read more: The Future of Work from Gen Z & Millennials' POV: What Numbers Tell Us 

The digital transformation era further reshaped corporate culture. Individual worker mobility, virtual workspaces, and digital communication platforms redefined the boundaries of traditional office settings.  

This shift ushered in an era of borderless work cultures, adopting flexible working arrangements and virtual team-building activities becoming integral to sustaining employee engagement. 

While culture fit has its benefits, it also has a dark side. Too much emphasis on cultural fit can lead to the death of creativity, as like-minded individuals fail to inspire innovation through variety or friction. It also inadvertently leads to biased hiring practices, with "not a culture fit" often masking prejudices and unjustified feelings of dislike towards candidates. 

The shift from culture fit to culture add reflects a broader change in organisational priorities: employee well-being, work-life balance, and professional development opportunities to create a culture of trust, empathy, and resilience.  

Thus, culture add focuses on hiring individuals who bring new perspectives and experiences to the table, enhancing the existing culture rather than simply blending in. 

This people-centric approach has become critical in driving organisational success, especially in the wake of global challenges and rapid market changes. 

Read more: Fatigue, Exhaustion, Disengagement in A World of Working From Anywhere

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Assessing the impact of culture fit 

Hiring for culture fit can have a positive impact on employee retention. When individuals resonate with the company's ethos, they are more likely to feel a sense of belonging and purpose in their roles, and thus, are more likely to remain committed to the organisation long-term.  

This can result in increased productivity, improved team dynamics, reduced turnover rates, and lower recruiting costs, ultimately benefiting the company's bottom line. 

Read more: Keep Your Superheroes: 6 Steps to Reduce Employee Turnover 

Despite its advantages, an excessive focus on cultural fit presents significant challenges in the long run. When organisations prioritise cultural fit above all else, they risk creating a homogeneous environment that lacks diverse perspectives and experiences. 

This homogeneity can stifle creativity and innovation, as like-minded individuals may fail to challenge existing norms or bring fresh ideas. Additionally, an overemphasis on culture fit can inadvertently perpetuate unconscious biases in the hiring process, like favouring candidates with similar beliefs. 

Another long-term drawback is the potential for a stagnant organisational culture. When companies consistently hire individuals who align perfectly with their existing culture, they may miss opportunities to evolve and adapt to changing market conditions.  

This lack of cultural evolution can hinder a company's competitive edge amidst today's unpredictable business landscape. 

Read more: Why Do Your Employees Quit? 5 Typical Causes of High Turnover Rate 

Let's compare the different cultures of these two companies. 

Zappos, an online shoe and clothing retailer, is known for its strong emphasis on cultural fit. The company's approach has led to high employee satisfaction and retention rates. However, critics argue that this focus on culture fit may limit diversity and innovation within the organisation. 

On the other hand, companies like Netflix have adopted a more subtle approach to culture fit. Their culture deck emphasises hiring for cultural add rather than just fit, encouraging the inclusion of diverse perspectives while maintaining alignment with core values. This approach has allowed Netflix to foster innovation while still maintaining a strong organisational culture. 

These case studies demonstrate the importance of balancing cultural alignment and diversity in hiring practices. Organisations must carefully consider the long-term implications of their approach to culture fit and adapt their strategies accordingly to ensure sustainable growth.

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Culture Add: A Catalyst for Growth 

Unlike culture fit, culture add seeks to enhance and diversify experiences and perspectives in the workplace. This approach recognises that differences can be strengths, introducing new viewpoints that can propel an organisation forward. 

By valuing unique contributions, culture add fosters an atmosphere where diverse talents and ideas are welcomed, leading to improved team dynamics and increased employee engagement. 

One of the key benefits of culture add is its impact on an organisation's problem-solving capabilities. Diverse teams are often more effective at tackling complex issues, as they bring a wider range of experiences and viewpoints to the table. 

A Deloitte study has shown that companies with diverse, inclusive cultures are six times more innovative and agile and eight times as likely to achieve better business results. 

Adopting a culture add approach can also help organisations attract a larger talent pool. Companies that prioritise diversity and inclusion in their hiring practices send a signal to potential candidates that they value their unique perspectives and experiences. 

Read more: Measure, Track, Enhance Diversity and Inclusion with Technology

Culture Fit vs Culture Add: What's the difference?

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The effect also extends to the employer brand. It demonstrates the company's commitment to inclusivity and forward-thinking, which can be particularly attractive to today's job seekers, who often prioritise diverse and inclusive work environments. 

However, one big question remains: how can organisations seamlessly adopt the “culture add” concept? This is a crucial aspect that we will unpack in the next article! 

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Rick Yvanovich

 Rick Yvanovich
 /Founder & CEO/

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