Employee Retention Matching Corporate Culture with Employee`s Values

EmployeeRetention Matching Corporate Culture with Employee`s Values


EmployeeRetention Matching Corporate Culture with Employee`s Values


Thecurrent study aimed at investigating if there is a relationshipbetween individual values and corporate culture when compared to jobsatisfaction amongst the staff. The study supports a research carriedout in 2007 by Min which aimed at determining whether there is arelationship between individual values, corporate culture, andretention rate amongst employees. The culture of an organization ispositively related to organizational performance, impacts itsproductivity, and as a result, it must be put into considerationwhilst motivating and supervising the staff. The present study isspecifically beneficial to small and midsized businesses (SMBs) ifthey acknowledge that small relationships of harmonizingorganizational culture to employee values may have considerablebenefits for organizational development. The aim of this is reducingcosts through lowering turnover levels amongst employees in additionto amplifying staff productivity and job satisfaction. For thisstudy, more than half of the respondents (55%) had the perceptionthat harmonizing employee values with organizational culture wasimportant for job satisfaction as well as retention.


Asput forth by Coxey (2003), matching an employee with an organizationis fundamental as it allows both of them to meet the set goalsbesides growing in a worthwhile relationship. In addition to this,assigning relevant job responsibilities to an employee is important.It is based on the reason that when an employee recognizes suchduties as harmonizing and significant to his/her values, there is ahigh probability of remaining in a position for a lengthy period oftime. There are various benefits of developing a company by matchingemployee values with job responsibilities. They include boosting jobsatisfaction, reducing costs linked with staff turnover, andincreasing employee retention. It has been found that small tomidsized business leaders experience difficulties in employing aswell as retaining productive and competent staff. For organizationsto attain set objectives and goals, understanding the issue ofemployee retention is paramount. It implies that leaders must payspecial concern to the issue. Corporate culture should be correlatedto employee retention as this allows an organization to enhance thehiring practices of a company therefore, lessening costs and turnoverrates. It also enhances profits and productivity whilst centering onthe success of an organization.

Forthe current study, a number of studies related to employee turnover,organizational development, corporate culture as well as jobsatisfaction for staff working in small to midsized businesses werereviewed. The aim was to find out the impacts of aligning corporateculture to employee values have on the levels of job satisfactionamongst the staff.

Ithas been shown that employee turnover is expensive and in particularfor small organizations. There are a number of tangible andintangible costs linked with staff turnover. Examples of tangiblecosts encompass the screening process, the interviewing process,testing, salaries, orientation, training as well as technology. Onthe other hand, intangible costs encompass the loss of productivity,amplified supervision a novel learning curve for the staff,transitional expenses incurred during the recruitment process, andamplified stress which results in lower productivity amongst theremaining staff. As argued by Min (2007), reducing turnover isbeneficial as it amplifies the productivity of an organization, itsprofits, as well as employee and organizational success. Highemployee turnover is experienced in the initial three months ofemployment. By understanding this trend, employers are in a positionto employ suitable techniques with the aim of finding out the mostappropriate candidates to fill the required vacant positions in theorganization. Another important factor is that organizations shouldrecognize that different staffs have diverse values founded onperformance. Retaining high performers and eliminating poorperformers is a goal that organizational leaders should endeavor atattaining.

Duringthe hiring process, corporate culture is an important aspect thatshould be put into consideration. Corporate culture is used bymanagers to motivate and supervise the staff. Although it lacks anestablished general definition, Baker (2009) defines corporateculture as the expression of employee-employer interaction. Theproductivity of an organization is affected by organizational culturein a direct and indirect way. “As an organization develops a strongculture, a positive impact on productivity is realized, whereas aweak and inappropriate culture has a negative impact on workproductivity” (Baker, 2009). There is a high likelihood ofamplifying productivity of an organization if the managers employ themost suitable individuals. This is based on the reason that theindividual values are matched with organizational culture. During therecruitment, selection, training processes of new staff,organizational leaders should put into consideration the culture ofan organization. Besides, determining the most favorable match of anemployee and corporate culture is paramount. In order to achievethis, an interviewer should compare the documented corporate culturewith individual preferences.

Effectivecommunication is significant to the success of any organization.“Communication was the key to sharing values through verbal andnonverbal methods” (Shaffer, 2008). Shaffer has also put forth theimportance of stimulating communication messages amongst leaders inan organization as it results in positive modification of corporateculture besides amplifying productivity. Organization leaders have aduty to establish and communicate understandable objectives to theirfollowers. While individual values describe significant features of aperson, corporate values describe significant features of anorganization.

Recruitmenthas been evidenced to be a major exercise in any organization. Mostdisciplinary predicaments especially in small companies take place asa result of the recruitment process. Most of these companies have anissue in retaining their most competent staff. Besides, these firmsdo not use standard employment processes as compared to theircounterpart larger companies. As a result, small companies mustestablish ways of reducing employment costs by implementing formalrecruitment procedures. The recruitment process is linked withvarious costs including advertisement costs for job openings,expenses incurred as a result of employing recruiting firms, humanresources, interviewee testing, as well as time used during theinterview process. A relationship has been found between meaningfulwork offered to the employee with job performance and retention.Offering meaningful work to employees increases their emotionalattachment to the organization thus the probability of high retentionrates.

Inorder to achieve the purpose of the current study, the investigatorchose participants who were “non-owner” certified publicaccountants and who worked in SMBs in metropolitan St. Louis,Missouri. The differences between the tested variables which wereindividual values and corporate culture were determined using aquantitative method having a correlational design. The major researchquestions investigated in the study were how retention rate amongstemployees is affected by harmonizing individual values and corporateculture and how the leadership of an organization is influence bysuch as match. The obtained data was analyzed using regression andANOVA statistics. The results indicated that there is a positivecorrelation between organization culture and employee values.


Baker,T. (2009).The new employee-employer relationship model. OrganizationDevelopment Journal,27(1), 27-36. Retrieved from,http://search.ebscohost.com.ezproxy.apollolibrary.com/login.aspx?direct=true&ampdb=bth&amp AN=3 8797439&amp site=bsi-live

Coxey,C. (2003). Work and the human spirit flourish together at the SommerBarnard Ackerson law firm. Journalof Organizational Excellence,22(2), 25-31. doi: 10.1002/npr. 10064

Min,H. (2007). Examining sources of warehouse employee turnover.International Journal of Physical Distribution &amp LogisticsManagement, 37,375-388. doi: 10.1108/09600030710758437

Shaffer,J. (2008). Creating a leadership engine to power performance.StrategicCommunication Management,12(6), 2831.Retrieved from http://proquest.umi.com.ezproxy.apollolibrary.com/b?did=15 93447391 &ampsid= 1 &ampFmt=3&ampclientld= 131 18&ampRQT=309&ampVName=PQD


Baker,T. (2009).The new employee-employer relationship model. OrganizationDevelopment Journal, 27(1), 27-36. Retrieved fromhttp://search.ebscohost.com.ezproxy.apollolibrary.com/login.aspx?direct=true&ampdb=bth&amp AN=3 8797439&amp site=bsi-live

TimBaker has introduced a model of novel psychological contract.According to Baker, the psychological contract phenomenon alsoreferred to as the employment relationship has obtained significantfocus from both organizational development practitioners andresearchers. A number of values have been supported by the model andit has aligned them to the modifying organizational and individualneeds. These values encompass customer focus, open information, humanspirit and work, flexible deployment, performance focus, learning anddevelopment as well as commitment. The model can be employed as ayardstick in a organization that is planning to shift from a culturecharacterized by traditional employment to a one which ischaracterized by novel employment relationships.

Coxey,C. (2003). Work and the human spirit flourish together at the SommerBarnard Ackerson law firm. Journal of Organizational Excellence,22(2), 25-31. doi: 10.1002/npr. 10064

Inher article, Clare D. Coxey has aimed at assessing how a law firmthat is determined at practicing excellent life for its associates,partners, as well as its support staff in conjunction with superiorlaw for its customers has gradually worked with the aim of attaininga refined model of service leadership. In addition to this, Coxeyasserts that the law firm has grown both in profitability and insize. High levels of dedication amongst the staff and low employeeturnover have also been recorded.

Min,H. (2007). Examining sources of warehouse employee turnover.International Journal of Physical Distribution &amp LogisticsManagement, 37, 375-388. doi: 10.1108/09600030710758437

Inhis article, Hokey Min aims at identifying the major variables whichimpact employee turnover rate in a warehouse. A number of variableshave been identified including occupational variables such as yearsof experience and skills individual variables such as job securityand pay scale and organizational variables such as industry and firmsize. Min has also developed a conceptual model aimed at connectingthe aforesaid variables which mirror job satisfaction and jobalternatives to employee turnover in a warehouse.

Shaffer,J. (2008). Creating a leadership engine to power performance.Strategic Communication Management, 12(6), 2831.Retrieved fromhttp://proquest.umi. com.ezproxy.apollolibrary.com/b?did=15 93447391&ampsid= 1 &ampFmt=3 &ampclientld= 131 18&ampRQT=309&ampVName=PQD

Shafferhas focused on how creating a leadership engine may result inperformance empowerment. As put forth by the author, research showsthat supervisors as well as leaders are important basis for strategiccommunications amongst the employees. However, it is certain that anumber of organizations lack strong communication foundation, thatis, strong leadership. This in turn has resulted in low levels ofstaff engagement, trust as well as retention. Shaffer has exploredemployee retention, trust and engagement in detail explaining howthey can be enhanced by strong leadership engine.