A recent article in Forbes (link below) covers a topic I discuss almost weekly with clients — the competitive advantage of culture.
Cultures like Google and Apple are renowned for creating competitive advantage through fostering creativity and great new product offerings.
One often overlooked aspect of having a fantastic culture is the value to the company of recruitment and retention. Many of my clients bemoan the fact that they cannot offer competitive salaries – particularly those in the public and non-profit sectors – and therefore lose-out on the “best” talent in the market. Additionally, many feel that low salaries cause a high turnover rate among their best employees leading to a talent-brain-drain within the organization.
During the recent recession, lower paying companies have been able to hire extra-ordinary talent. But they fear, with good cause, that these same people will be heading to other higher paying opportunities once the job market improves.
The competitive component that most organizations are missing out on is the quality of their culture. Working within a fantastic culture is one of the key strategies for retention of great talent. Articulating and carefully cultivating a great culture can help all companies hire, develop and retain an above average, talented workforce.