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Employee Rescreening

Why Corporate Culture is Far More Valuable Than Perks

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Why Corporate Culture is Far More Valuable Than Perks

Attracting and retaining talent is hard work. For years, employers have tried to understand what helps companies attract and retain top performers. For the most part, they've found that companies with great financial outcomes almost always have happy employees. The research even shows that it's employee satisfaction that results in good performance, not the other way around.

However, this phenomenon has led many companies to confuse the difference between culture and perks. In an attempt to please and attract high level talent, companies are spending more money than ever on perks and benefits believing this to be the key to happiness. Though the increase in company amenities, trips, and material rewards can temporarily boost employee satisfaction, it does little to address any real underlying issues that could be destroying your culture.

If your company offers great amenities but is experiencing low performance or high turnover, then you need to ask why it’s happening. Is it because you need to allocate more of your budget towards perks and benefits, or because your culture has a toxic behavior problem that you need to confront?

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The Riskiest Mistake Your Enterprise HR Team is Making

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The Riskiest Mistake Your Enterprise HR Team is Making

From a young age, we’re taught to go to the doctor regularly to catch potential health issues before they arise. But as we all know, many people wait until something goes wrong before they seek help. Rather than work to stay ahead of potential illness, people fall into the trap of thinking they’re invincible. Unfortunately, we see many companies make this same mistake. When it comes to managing their workforce, companies are notorious for choosing the emergency room when regular, preventative care would have done the trick.

Now that employee conduct and culture are becoming increasingly tied to a company’s reputation, companies who limit their background checks to the hiring process are missing a wealth of critical information about their hiring risk. According to the Bureau of Labor Statistics, the average employee has a tenure of 4 to 10 years. This means that companies who rely exclusively on pre-employment background checks may be missing up to 10 years of important job-related issues per employee.

There’s a lot that can happen after an employee is hired. A senior level director may play nice during the interview but later take to the internet to publicly shame a fellow employee. A customer service rep may clear the background check and later embezzle funds from customers. A government employee may pass a 12-step interview process and security clearance and still be found to have engaged with terrorist activity. In each case, the employee displayed red flags that could have alerted the employer and helped them stop the issue. Instead, the employer missed the signs and was left asking, "How did we miss this?"

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