Why a strategic culture is imperative for hiring success

I’ve recently been taking a program with the IESE Business School in Barcelona. During one particular module we started covering the topic of strategic HR using Dave Ulrich’s book, Human Resource Champions, as the backdrop, and it sent me down a rabbithole of thinking in relation to hiring. Specifically, how organizations hire for company culture or values, and the potential shortcomings embedded in this approach.

When we think about a company culture, or the values a company holds itself to, how often are these built with strategy in mind? We decide on a vague set of aspirational words or mission statements that neatly encapsulate what the organization believes itself to embody. We are driven. We are creative. We think outside the box. We value the human experience. These are all wonderfully idealistic and definitely give a sense of encouragement – but they’re like horoscope readings in that ANY organization could attribute themselves to these kinds of descriptors. They’re not strategic. They don’t speak to the specific goals and outcomes the business is trying to achieve. And it begs the question – why would we base hiring decisions on a culture or values that aren’t directly linked to the success metrics of the organization?

To frame the discussion with the class, we were asked how would we categorize our own company culture under four headings:

• Toxic
• Neutral
• Healthy
• Strategy-enhancing

I chose “healthy” – we work hard at SocialTalent to reach our lofty aims, but we try to never lose sight of our employees and are always looking for ways to improve our culture. I was confident in this pick, more so because I didn’t fully grasp what was meant by “strategy-enhancing” at the time. But it soon became apparent when we dived into our case study on Netflix.

It’s a well-known example of what a strategic culture looks like – Netflix spent a tremendous amount of time identifying and creating an environment and value-set that truly works for them. They were so confident in this that the entire strategy deck was (and still is!) available to view publicly. Even with a quick glance through the slides, you can see how tailored their approach is. Their goal was to disrupt an entire industry, so they locked into core goals that they could hire against to get the talent they required to achieve this aim.

They needed courageous people who could make tough decisions. People who could generate “amazing amounts of important work,” who were tenacious in their approach yet selfless in execution. Netflix actively sought out these employees because they knew these qualities would help them grow, expand and succeed. 

It’s not to everyone’s taste of course, and the company recognized this, stating that “adequate performance gets a generous severance package.” It seems extremely cutthroat – but it was their mission and they were upfront about it. This culture would absolutely alienate a lot of talent. However, Netflix knew exactly who they wanted to hire, and by making it abundantly clear, they ended up with the employee base they needed for success at the time.

Now personally, I wouldn’t sign up to work at Netflix – their approach isn’t for me (and with the current press they’re getting about their most recent layoffs, I am guessing that many more would hold this same opinion). But there’s a lot that can be learned and adapted here, particularly in relation to building values and a culture that directly ties into your mission as a company. After doing this module, I reflected on SocialTalent’s own values:

Ambition

Bravery

Collaboration

Dignity

I love our A,B,C,D of values, yet I do have to admit, they weren’t necessarily chosen with strategy in mind! But when I dug into each a little bit more, I realized how important some are in terms of who we hire. We have huge ambition to be the leading learning platform for Enterprise, for example. It is essential that our staff display this quality – they have to have the motivation to drive change, and not just think about it. Ambition, therefore, is a critical success component of SocialTalent, and something we absolutely should be focusing on when hiring. 

And if I was to go a step further, particularly when I think about how our culture needs to be strategy-enhancing, I’d probably add E for Education to our values. We thrive in a culture of learning, both at an individual employee level and the macro level of the organization as a whole. So candidates with a thirst for knowledge and betterment are always going to succeed here and help build our aspirations. 

‘Strategic’ really is the evolution of ‘good’ when it comes to culture. Being deliberate in how you choose and amplify your core values can directly help you hire the employees you need for success. So ask yourself – in which category does your company culture currently sit? And if it’s not strategic, why not? Join the dots and communicate this with the business as a whole. Build values that arm hiring managers and recruiters with the insight they need to hire the best talent for YOU.