Toronto, June 29th, 2010: Leaders overwhelmingly hire for fit over skill, are actively measuring their organization’s corporate cultures and say that culture impacts corporate performance, according to the results of the 2010 Canadian Corporate Culture Study.

The study is conducted annually by Waterstone Human Capital, a leading professional search, executive recruitment and human resources consulting firm. Each spring, hundreds of Canadian executives representing a cross-section of industries are asked a variety of questions about corporate culture, including: how they define, measure, assess and align culture within their organizations; the impact of leadership on corporate culture; how culture impacts recruitment and retention efforts; and, how culture impacts corporate performance.

Highlights from this year’s results include:

• 83 per cent of respondents feel cultural fit is more important than necessary skills when finding candidates for their organization;
• 77 per cent of respondents say they measure their organization’s corporate culture (since the first study results in 2006, this number has more than doubled);
• 71 per cent of respondents say their organization’s corporate culture drives sales and revenue;
• 90 per cent of respondents feel their current leadership has led to the evolution of their organization’s corporate culture;
• 82 per cent of respondents agree or strongly agree that their organization’s corporate culture impacts their ability to acquire top talent;
• 87 per cent of respondents agree or strongly agree that their organization’s corporate culture impacts their ability to retain top talent.

 

“Corporate culture is a strategic competitive advantage and the really great organizations know this,” says Marty Parker, the managing director of Waterstone Human Capital. “They understand that culture is perhaps the most important asset they can have and if they get it right, they’ll see the results on the bottom line.”

Parker sites the findings from 2009, from Waterstone’s Canada’s 10 Most Admired Corporate Cultures program which found that the performance of Canada's 10 Most Admired Corporate Cultures of 2009, in terms of three-year compounded annual revenue growth, significantly outpaced the S&P/ TSX by an average of over 300% --or three times.

Says Parker: “Organizations with outstanding corporate cultures value the creation of great workplaces for their employees. But they also see the financial return. Organizations want to deliver to their stakeholders and shareholders, and those with strong corporate cultures, quite simply, outperform their peers.”

This year’s results show that respondents are measuring culture much more than they used to: just 35 per cent of respondents said they measured culture in the 2006 results, versus 77 per cent in 2010.

Parker says that when organizations measure their culture, they uncover the drivers of that culture – a critical gauge for corporate performance. Parker also notes the increased interest in cultural assessments.

“There is little doubt that culture strongly affects the functioning of any organization, but there is still a lack of awareness among managers about how to uncover, evaluate and improve that culture,” says Parker. “A cultural assessment allows an organization to examine how their values and behaviours align with where they are trying to go as a company.”

Parker also notes the critical role leaders play in shaping organizational culture. “Great leaders build great organizational culture, and the behaviour that supports that culture drives performance,” says Parker.

About Waterstone Human Capital:

Waterstone Human Capital is a leading professional recruitment, executive search and human resource consulting services firm based in Toronto.  Our unique recruitment process is designed to maximize candidate fit and integration into our clients’ corporate cultures, using best-in-class methodologies. Waterstone’s professionals develop an inside view of our clients’ corporate cultures to understand the behaviours of successful leaders within these organizations, and our cultural assessment process determines the key behaviours driving that success. The annual Canada’s 10 Most Admired Corporate Cultures ™ program was founded by Waterstone in 2005. www.waterstonehc.com

About the Canadian Corporate Culture Study ™ and The Canada’s 10 Most Admired Corporate Cultures™ program:

Waterstone Human Capital's Canadian Corporate Culture Study ™ serves as the basis for the Canada’s 10 Most Admired Corporate Cultures ™ award season, which begins in the spring. The survey asks hundreds of senior executives a variety of questions about corporate culture. At the end of the survey, respondents are also asked to nominate organizations they most admire for having a corporate culture that has impacted performance. Since 2005, the Canada’s 10 Most Admired Corporate Cultures ™ program has recognized some of this country’s top organizations for having a culture that has helped them enhance performance and sustain a competitive advantage. The program culminates in a national awards gala, to be held on February 7th, 2011, and will for the first time recognize regional finalists. www.canadasmostadmired.com

For more information: Jennifer Mondoux, Director, Marketing and Communications, Waterstone Human Capital, 416 408 4545 x273.

Canada's 10 Most Admired Corporate Cultures of 2010
Rewards and Recognition Partner: I Love Rewards Inc.
Media Partner: The National Post
Travel Partner: WestJet