Eight tips to evaluate if your next role is right for you
Strong company culture can significantly reduce employee turnover, according to recent research
Image: Shutterstock
We are relatively cautious about what we buy when the stakes are high. But do we apply the same level of scrutiny to the most important investments of our lives – choosing a partner or a career path? Divorce and turnover rates suggest not.
While we won’t weigh in on the complexities of marriage, as career advisors and coaches, we know that cultural misalignment is the primary reason why people leave their jobs. This mismatch can stem from hiring errors or a gradual realisation of incompatibility. The financial implications are substantial: Replacing an employee often costs several times their annual salary.
In contrast, a strong company culture can significantly reduce employee turnover, according to recent research by Sukti Ghosh and Victoria Sevcenko from INSEAD and Arianna Marchetti from London Business School. They found that stronger cultures make employees feel connected to each other, improve teamwork and encourage the development of unique skills and knowledge that are specific to the organisation. This makes employees more valuable and less likely to leave for opportunities elsewhere.
While it is clearly critical to find the right cultural fit, uncovering a workplace’s culture can be challenging. Beyond gathering data and “intelligence” about your potential next employer, you need to trust your instincts and look out for red flags during the recruitment process.
We've worked with numerous people who have, to their detriment, either misjudged a company’s culture or neglected to assess it before joining. Our conversations with three professionals highlight key factors to consider before making the leap.
[This article is republished courtesy of INSEAD Knowledge, the portal to the latest business insights and views of The Business School of the World. Copyright INSEAD 2024]