Researchers at Stanford University and the University of California–Berkeley found in a recent study that companies can increase their profitability and innovation outcomes by creating a workplace that balances cultural agreement and diversity in the company culture. The researchers used text analytics to analyze cultural differences based on Glassdoor employee reviews, then measured these differences against business outcomes. In their analysis, they identified two distinct forces at work:
- Compositional Diversity: When employees disagree with each other what makes up a company’s culture.
- Content-Based Diversity: When company culture is made up of a diverse set of topics, which may sometimes conflict with one another.
After considering how compositional and content-based diversity impact organizations’ business outcomes, the researchers found that organizations with higher levels of compositional diversity are associated with negative business outcomes, while organizations with higher levels of content-based diversity are associated with positive business outcomes. From what we uncovered at CEB, now Gartner, in our latest research on organizational culture, both of these findings make perfect sense.
Aligning the workforce to a common vision of culture drives business performance…
Our research finds that organizations have better business and talent outcomes when they have a high level of what we call Workforce-Culture Alignment or WCA for short. Organizations with high WCA have a common set of core cultural expectations that are consistent across the enterprise, ensuring a lower level of what the Stanford-UCB scholars refer to as compositional diversity. Congruent with the findings from their study, we find that without a shared understanding of the desired culture, it is impossible for the workforce to engage in a concerted effort to put that culture into practice. When WCA is low, progress toward the desired culture is slowed and both business and talent outcomes suffer as a result.
…as does empowering employees to translate the culture independently.
We’ve heard of McDonald’s using Snapchat to target its recruiting efforts at young people, but other employers are turning to the youth-focused platform to recruit millennials and members of generation Z as well, including some major investment banks. Ellen Chang at The Street recently highlighted Morgan Stanley’s new Snapchat-based campus recruiting initiative:
Morgan Stanley launched its campaign with Snapchat earlier in 2016 in an effort to attract college students, and geofilters were created this summer for its analysts and associates. “We have to be where the students are,” said Lisa Manganello, head of integrated brand marketing at Morgan Stanley. “We want to build on the momentum and leverage and it fits naturally with student behaviors.” …
The bank could expand the geofilters to include other colleges across the U.S. if this initial program is successful to help them garner a broader and more diverse group of future investment bankers, Manganello said.
Other banks like JPMorgan Chase and Goldman Sachs have experimented with advertising jobs on Snapchat as well. ERE‘s recruiting tech blogger Joel Cheesman thinks it’s a great idea:
Highbrow companies who dismiss Snapchat as a medium for greasy burgers and salty fries should now take notice. Snapchat is making strides to becoming a legitimate advertising platform. Need more proof? In addition to Morgan Stanley, JPMorgan actually started testing Snapchat as a recruiting tool last year.
The argument for using Snapchat as a platform for recruiting appears to hinge on the concept of meeting that their target audience in the digital space where they already are. I’m skeptical of the hype about these efforts to raise brand awareness, however, mainly because if big investment banks like Morgan Stanley are no longer competing just with each other for top talent, but with tech companies and startups as well, there is little evidence that simply being in the same digital space as their target audience has much impact on attracting talent or raising the quality of their applicant pool.