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The Hidden Power of Values: Are They Really Driving Your People Processes?

A diverse group of professionals collaborating around a table with core values prominently displayed on the board behind them.

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In organizations, it's easy to lose sight of what truly matters. CEOs likely spend considerable time crafting organization's core values. But here's the million-dollar question: How closely are these values integrated across ALL people processes, especially in hiring, promoting, and firing?


This question strikes at the heart of organizational culture. Core values aren't just fancy words on a wall; they're the DNA of the company. When fully integrated, they become the invisible hand guiding every decision, from who joins your team to who leads it.


This article will give you meaningful insights on the importance of infusing company’s core values to people processes focusing on the following areas:

  • Impact of core values to people processes

  • Actionable tips on aligning core values with people processes

  • Value of measuring workplace culture

✅Highlights of the Article 

  • Engaged employees show higher commitment to their roles and company goals.

  • A values-driven culture builds a positive workplace where employees feel respected, valued, and understood.

  • Values-based guidelines fosters trust and operational effectiveness throughout the organization.

  • Employees who share the company's values tend to stay longer, reducing turnover and training costs.

  • A values-driven approach also fosters customer loyalty and strengthens the company's competitive position in the market.

  • Directly assessing candidates alignment with your company's core values is the key to maintaining a cohesive organizational culture when hiring

  • Employees gain a deeper understanding of how to apply values in their day-to-day roles with training sessions that incorporate real-life scenarios and examples.

  • A promotion rubric that aligns with organizational core values sets clear expectations

  • Value-based performance reviews enhance engagement, aligns employees with company goals, and supports ongoing organizational success.

  • Clearly articulating how their behaviors or actions have diverged from the company's values is crucial when terminating an employee.

Implementing Core Values in All People Processes: A Guide

A diverse group of professionals holding letter cutouts of the word core values.

The challenge in aligning company’s core values with human resource processes lies in moving from theory to practice. It's one thing to have values; it's another to live them consistently. 


Many organizations struggle with this alignment, creating a disconnect between what they say and what they do. This misalignment can lead to confusion, cynicism, and ultimately, a toxic culture.


Discover how measuring workplace culture can address misalignment between core values and human resources processes, and get actionable tips to conquer this challenge in the following sections.


Five Key Benefits of Implementing a Core-Value Driven People Processes

 A group of office workers collaborating with text on the image “Five Key Benefits of Implementing a Core-Value Driven People Processes”.

In today's business world, integrating core values into HR processes isn't just theory—it's essential strategy. Companies that align their people's practices with core values such as integrity and innovation cultivate a workplace where every interaction reflects these principles.


From recruitment through to performance management, embedding these values fosters engagement and purpose among teams, bolstering employee retention and loyalty. This approach not only enhances organizational culture but also solidifies a reputation as an ethical employer of choice.


By prioritizing values in every aspect of operations, organizations not only attract top talent but also inspire a workforce committed to shared goals and principles. Discover how aligning core values drives success and resilience in today's competitive landscape in this section.


Enhanced Employee Engagement

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When employees see their organization consistently live its core values, it boosts their motivation to contribute meaningfully. This alignment instills purpose and strengthens their sense of belonging. Employees feel more connected to the company's mission and are inspired to actively contribute to its success.


Engaged employees show higher commitment to their roles and company goals. Their dedication leads to increased productivity and morale throughout the organization. This enthusiasm comes from believing in the organization's values, driving them to exceed expectations. Overall, upholding core values creates a workplace where employees are dedicated and fosters a culture focused on achieving results.


Improved Organizational Culture

Core values unify employees around a shared vision and principles, fostering a cohesive work environment. This unity encourages collaboration and creates a supportive atmosphere where teamwork thrives.

📝Helpful Article


A 2022 McKinsey survey of 1,000 companies found that those ranking in the top quartile for adherence to their stated values achieved on average 25% higher workforce productivity than those in the bottom quartile. Learn more about this survey in this article:


A values-driven culture builds a positive workplace where employees feel respected, valued, and understood. This environment enhances job satisfaction and promotes better teamwork among colleagues. Overall, prioritizing core values cultivates a workplace culture that inspires mutual respect and cooperation, contributing to a productive and harmonious atmosphere.


Better Decision-Making

Decisions guided by core values ensure alignment with the company's mission and ethical standards, fostering sustainable and principled business practices. This approach not only strengthens organizational integrity but also enhances trust and reliability among stakeholders, supporting long-term success.

A group of office workers collaborating around a table

Values-based guidelines provide clarity, helping leaders and employees make consistent and transparent decisions. This fosters trust and operational effectiveness throughout the organization, reinforcing integrity and ethical commitment for long-term success and stakeholder trust.


Higher Retention Rates

Employees who share the company's values tend to stay longer, reducing turnover and training costs. This loyalty stems from aligning personal values with organizational principles, fostering a strong sense of belonging and commitment among staff.


A recent survey revealed that 80% of employees aligned with their employer's values were more likely to stay longer in their roles. This connection underscores how values alignment directly impacts retention and organizational stability. 


When employees see their values reflected in their workplace, they experience higher job satisfaction and well-being, driving their dedication to the company's success. A workplace where employees feel valued and aligned with company values supports long-term growth and competitiveness in the market.


Stronger Employer Brand

Studies consistently show that organizations known for their commitment to core values attract a higher caliber of applicants who are motivated by more than just salary or benefits. These candidates are drawn to companies that prioritize integrity, transparency, and social responsibility in their operations.


A values-driven approach also fosters customer loyalty and strengthens the company's competitive position in the market. Customers are more likely to trust and support businesses that consistently demonstrate adherence to their stated values. 


This strategic alignment reinforces the company's identity, fostering a positive impact on both recruitment efforts and customer relationships.


How to Ensure Your Values are Truly Driving Your People Processes

Ensuring your company's core values are truly driving your people processes is essential for maintaining a strong, cohesive organizational culture. Core values should not be just words on paper; they need to be integrated into every aspect of how your company operates. 


By embedding these values into your people processes, you can foster a more engaged, motivated, and loyal workforce that is aligned with your company's mission and goals.


This section will provide practical insights and actionable steps to help you align your human resource practices with your core values, from hiring and training to promotions and offboarding. 


Running a Core-value Driven Hiring Process

Two people shaking hands while holding a resume

It's crucial to ensure candidates align with your company's core values to maintain a cohesive organizational culture when hiring. Developing interview questions that directly assess this alignment is key. 


Start by introducing each core value and its importance. For example, if integrity is a core value, explain how it builds trust and ethical behavior. During interviews, ask situational questions that prompt candidates to describe how they've applied these values in previous roles.

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When it comes to evaluating candidates, many hiring managers rely on outdated myths and ineffective practices. Here is a helpful article on how to tackle this myth:


Debunking Myths: 3 Steps to Better Candidate Selection

For instance, ask:

  • "Can you share a time you faced an ethical dilemma at work? How did you handle it?" 

  • “Can you describe a time when you had to make a decision that tested your commitment to ethical behavior at work? How did you handle it, and what were the outcomes?”


Look for specific examples where candidates demonstrate consistent practice of your values. This approach helps gauge their alignment beyond theory. Integrating values-based questions ensures candidates not only have the skills and experience but also uphold and strengthen your company's culture.


Integrating Core-values to Training Programs

Continuous training programs are vital for educating employees on applying core values in daily work. They ensure values guide behavior and decisions across the organization. Begin by stressing values like integrity or teamwork for a positive work environment.


Develop training sessions that incorporate real-life scenarios and examples. For example, during a training on integrity, present a scenario where employees must navigate a situation involving a conflict of interest. By providing practical examples, employees gain a deeper understanding of how to apply values in their day-to-day roles.

A group of professionals in a small group discussion

Regular sessions educate new hires and serve as refreshers for existing employees, keeping values top of mind in all business interactions. This approach ensures that employees understand the theoretical aspects of your company's values and feel equipped to embody them consistently


Developing a Promotion Rubric Based on Core-values

Creating a promotion rubric that aligns with organizational core values is essential for fair and consistent promotion decisions. It sets clear expectations and emphasizes the importance of values across different levels of the organization. 


Imagine a scenario where a team leader is being considered for promotion. The rubric would specify that candidates at this level should demonstrate leadership in promoting teamwork, such as by leading cross-functional projects or mentoring junior staff in collaborative problem-solving. 


This approach ensures candidates are assessed against clear criteria that align with the organization's values which promote fairness and transparency in decision-making. It ensures that promotions recognize individual achievements and reinforce behaviors that reflect the organization's core values.


Incorporating Values-based Metrics in Performance Reviews

Two women facing each other around a table with a laptop, pen and cup on the table.

Integrating values-based metrics into performance reviews is essential for fostering a values-driven culture. Start by explaining how these metrics evaluate employees not just on what they achieve, but also on how they uphold core values like integrity and collaboration.


For example, during a performance review, assess how well a team member demonstrated teamwork in achieving project goals or maintained ethical standards in client interactions. Providing specific feedback on these behaviors recognizes adherence to values and highlights areas for improvement in alignment.


By integrating values-based metrics into reviews, companies reinforce organizational values and promote a workplace where values are actively upheld. This approach enhances engagement, aligns employees with company goals, and supports ongoing organizational success.


Setting a Clear Offboarding Process

When it comes to terminating an employee, it's crucial to clearly articulate how their behaviors or actions have diverged from the company's values. This ensures transparency and reinforces the significance of values throughout the organization. 


During the exit process, explain to the departing employee the specific instances where their conduct did not uphold company values like integrity or teamwork. This clarity helps maintain consistency in demonstrating the importance of values across all levels of employment.

Man packing up his office stuff to a box

This approach reinforces a culture where every member understands and respects the values that guide the organization. Ultimately, ensuring that departures are handled in alignment with core values helps sustain a cohesive workplace culture and promotes trust among employees in the organization's commitment to its guiding principles.


Get Culture SKOR to Kickstart Your Journey to a Values-driven People Processes

SKOR serves as your definitive barometer for organizational culture, offering predictive insights that forecast future success and empower your business to benchmark against industry peers.


SKOR’s products and services cover your end-to-end need to have the industry-leading people processes rooted in your company’s core values. With SKOR, you are not only able to evaluate your current people processes but also get a tailored high-performance strategy based on proven methods on how to develop and drive your values-centered people processes.


The Final SKOR

Remember, the goal isn't perfection, but progress. Regularly assess how well your values are integrated and be willing to make adjustments. Encourage open dialogue about values and how they're being lived (or not) throughout the organization.


By fully integrating your core values across all people processes, you're not just building a more consistent organization; you're creating an environment where people can do their best work and achieve outstanding results. This is the essence of a strong, engaged culture.


When companies consistently hire, promote, and yes, even fire based on their core values, it sends a powerful message about what truly matters in the organization. This alignment is the secret sauce that can transform good companies into great ones, creating a culture where excellence isn't just an aspiration, but a daily reality.

 

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