The insurance industry's emphasis on "cultural fit" in hiring may be hindering innovation. To combat this, a new approach called "cultural add" is gaining traction. This strategy is revolutionising the way insurance companies form diverse and dynamic teams, enhancing their ability to adapt to industry changes and foster innovation.
But what exactly is "cultural add," and how does it differ from the traditional "cultural fit"? In this blog, we’ll delve into both approaches, their advantages and disadvantages, their impact on hiring strategies, and why an increasing number of insurance firms are adopting the "cultural add" method.
Understanding Culture Fit vs. Culture Add in Hiring
You’ve likely heard the term "culture fit" in hiring discussions, but have you heard of "culture add"? Let's explore these concepts and understand their significance for your insurance firm.
Cultural Fit: The Familiar Face
Seeking a culture fit means looking for someone who will seamlessly integrate into your existing team. It’s like finding a puzzle piece that fits perfectly into your company’s jigsaw. This approach can be beneficial as it often leads to:
- Smoother onboarding
- Better team cohesion
- Increased employee satisfaction
However, an overemphasis on culture fit can result in a homogeneous workforce, which may stifle innovation and diversity.
Cultural Add: The Fresh Perspective
On the other hand, the culture add approach focuses on bringing in individuals who align with your core values while introducing new perspectives. It’s like adding a dash of spice to your company’s secret sauce. This method can offer:
- Diverse viewpoints and experiences
- Enhanced problem-solving capabilities
- Increased innovation and creativity
The challenge? Integrating these new perspectives into your existing team dynamics may require more effort.
The Benefits and Drawbacks of Hiring for Cultural Fit
The Upside: Happy Employees
Hiring for cultural fit involves finding candidates who align with your company’s values, which generally leads to:
- Improved job satisfaction: New hires feel at home, leading to happier employees overall.
- Higher retention rates: Employees who fit well are less likely to leave, reducing turnover and associated costs.
The Downside: Homogeneity
But there are potential pitfalls:
- Monoculture mayhem: A team that looks and thinks alike can stifle diversity.
- Status quo stagnation: Homogeneity can hinder innovation and creative problem-solving.
- Overlooking top talent: You might miss out on exceptional candidates who don’t fit the current culture but could excel in the role.
While cultural fit can foster a positive environment, it shouldn’t be the sole criterion. Consider candidates who align with your core values and bring something new. This approach, known as "cultural add," can help build a diverse, dynamic team.
Why Insurance Firms Are Embracing Cultural Add
While cultural fit can foster a positive environment, it shouldn’t be the sole criterion. Insurance firms are recognising that homogenous teams can hinder innovation, growth, and the ability to effectively adapt to market demands. As a response to this, they’re seeking individuals who bring fresh perspectives to the table as a cultural add.
Here’s why culture adds are becoming essential:
Diversity
Building a dream team means bringing in unique perspectives. That’s cultural add in action! Hiring from diverse backgrounds isn’t just ticking a box—it’s supercharging your innovation engine. Studies show diverse teams are 87% better at decision-making. How’s that for a competitive edge?
Fresh Eyes, Fresh Ideas
Cultural add offers a constant supply of fresh perspectives. New hires from different industries or backgrounds can spark the next big breakthrough.
Authentic Connections
A diverse team better connects with a wider range of customers. The closer your team reflects your target market, the more authentic your connections will be. When expanding into new territories, having someone who truly understands the market is invaluable.
How Insurance Firms Are Shifting to Hiring for Cultural Add
Attracting, hiring, and developing candidates who contribute to a company's culture requires specific adjustments in internal processes. While these adjustments may appear similar to optimising for cultural fit, there are distinct differences to consider.
Here’s how insurance firms are switching towards a culture add:
1.    Revamping Job Descriptions
Revamping job descriptions to encourage cultural add is crucial for fostering innovation and diversity. Focus on the specific skills and traits that can bring new perspectives and enhance your team's dynamics, avoiding language that suggests biases. Ensure descriptions highlight your firm's openness to fresh ideas and different viewpoints. Use clear, professional language to emphasise the organisation's commitment to evolving its cultural landscape. Include statements that stress the importance of cultural add to attract candidates who can contribute unique experiences and skills, making all candidates feel valued for what they can bring to the team.
2.    Guarding Against Bias
As humans, we all have biases. Ignoring these biases during the interview process can lead to hiring candidates who simply fit the existing company culture instead of enhancing it. To effectively hire for "cultural add," it is essential to adjust your interview process to evaluate how candidates can enrich and diversify the company culture while maintaining fairness and consistency. Here are key points to consider:
- Hold competency-based interviews: Focus on the candidate's skills, experiences, and how they can introduce new perspectives and ideas to the firm.
- Use objective, measurable assessments: Implement standardised testing and evaluation criteria to objectively measure candidates' abilities, ensuring they add value to the evolving culture.
- Compose broad interviewing panels: Include a diverse group of interviewers who understand the firm's goals to evaluate how well a candidate can contribute to and enhance the existing team dynamics.
- Involve your HR team: Engage HR professionals in the recruitment process to ensure that hiring practices align with the company's cultural evolution goals.
- Hire from a broad pool of applicants: Encourage applications from a diverse range of candidates to find individuals who can bring unique perspectives that complement and expand the firm's culture.
3.    Training Hiring Managers to Value Consistent Cultural Perspectives
This involves educating managers on the importance of bringing in diverse perspectives and the benefits it brings to team innovation and performance. Through targeted training programs, such as Cultural Evolution and Inclusion Training, managers can learn to recognise and appreciate the value of new ideas and backgrounds. They can also implement fair recruitment practices that support these goals.
4.    Supporting New Hires
After hiring candidates for cultural add, it's crucial to support them with onboarding programs and training sessions that reinforce the company's culture. The goal is to help them integrate smoothly while aligning with core values, not to make them conform. Effective onboarding should facilitate their unique contributions and enhance the overall culture. Research shows that organizations with strong onboarding processes can increase retention by 82%.
5.    Embracing Discomfort
Hiring for cultural add can initially feel uncomfortable, as it involves considering candidates who don't fit the usual mould. Embrace this uncertainty as a sign of stepping out of your comfort zone and exploring new possibilities. Trust the process, and you'll soon experience the benefits of a more diverse and dynamic team.
Finding the Sweet Spot
Finding the right balance between cultural fit and cultural add is crucial. However, the industry is moving beyond the old-school "fit" mentality to embrace the fresh perspectives that cultural add brings. This approach not only fills positions but also invests in innovation, diversity, and long-term success.
By blending both cultural fit and add, you can seek candidates who share your company’s core values while bringing fresh ideas and diverse experiences. So, next time you’re hiring, think beyond just fitting in—consider how a candidate can enhance and elevate your company’s culture. Sometimes, the best fit isn’t a fit at all, but an addition that will propel your team to the next level.
