The truth is, diversity of thought and experience—whether in terms of background, perspective, or even personality—can lead to better problem-solving, more creative solutions, and increased adaptability.
A study by McKinsey & Company found that organisations in the top quartile for ethnic and racial diversity are 35% more likely to have financial returns above their respective national industry medians.
This highlights that innovation driven by diverse perspectives leads to better business outcomes. Yet, by prioritising cultural fit over diversity, companies limit their exposure to different ideas and, as a result, may miss opportunities for growth.
Take, for example, the growing emphasis on hiring “team players” who adhere to a company’s pre-established culture.
While team cohesion is important, this mentality can lead to the exclusion of individuals who may challenge the status quo, question established processes, or bring in ideas that deviate from the norm. These are often the people who spark innovation and drive business growth.
According to Boston Consulting Group (BCG):
Companies with more diverse management teams have 19% higher revenue due to innovation.
In a world where disruption is constant, the ability to think outside the box and approach challenges from new angles is more valuable than ever. Moreover, research has shown that over-prioritising cultural fit can also harm diversity and inclusion efforts.
A study from Harvard Business Review revealed that companies that focused too heavily on cultural fit had a higher likelihood of hiring employees with similar backgrounds, which contributed to a lack of diversity.
This issue is compounded by another statistic from Glassdoor, which found that 67% of job seekers say a diverse workforce is an important factor when evaluating job offers.
By overly focusing on cultural fit, companies may unintentionally reinforce homogeneity and fail to attract the diverse talent that drives innovation.
For instance, according to McKinsey’s 2020 Diversity Wins report, ethnically and racially diverse companies were 36% more likely to outperform their less diverse counterparts on profitability.
However, this advantage is threatened if talent acquisition processes exclude candidates who bring new, unique perspectives due to a narrow view of “cultural fit.” When hiring managers are too focused on finding candidates who mirror the existing culture, they might overlook qualified individuals who could challenge norms and foster necessary change.
What we need is a “Cultural Add” approach.
Ultimately, the obsession with cultural fit needs to be reevaluated. Instead of solely prioritising conformity, talent acquisition teams should consider how a candidate’s differences could complement and enhance the existing culture.
A shift towards hiring for “cultural add”—focusing on how candidates can contribute something new to the culture—might just be the key to fostering an environment where innovation and creativity flourish.
As Harvard Business Review pointed out, teams that bring together people with diverse cognitive styles, backgrounds, and experiences perform better in tackling complex problems than those that merely focus on personal similarities.
If companies continue to prioritise hiring for culture over the innovation potential, they risk becoming stagnant and falling behind in an increasingly fast-paced, dynamic business environment.
The overemphasis on cultural fit in talent acquisition could be one of the most counterproductive trends in modern hiring practices. While team dynamics and alignment are important, fostering an environment of diversity, challenge, and growth may be far more crucial in driving long-term success.
By prioritising a broader, more inclusive approach that embraces “cultural add,” companies can ensure they remain agile, innovative, and ahead of the curve in an ever-evolving business landscape.
Find out more about our pledge to Talent Diversity.
