Beyond the Offer Letter: The Critical Role of Evaluating Company Culture When Taking a New Job
By Claire Harbour, Antoine Tirard and Graham Ward
“Caveat emptor”, they say, when cautioning us to be careful and thoughtful about what we buy, especially when the stakes are high. If we choose the wrong brand of slippers, it does not matter much, but if we overlook a faulty electrical wiring system when we buy a house, the consequences can be deadly. This caution before action is relatively well anchored in our behavior when we are making a purchase. But can the same be said of other major choices, especially when it comes to those that imply the long term, such as marriage or career choices? We know the divorce statistics – half of first marriages and even more of subsequent attempts to tie the knot – so apparently we are not great at that choice either.
Unfortunately, the same often applies in career moves. Our own observations as career advisors, along with widespread research, indicate that cultural misalignment drives between 70% and 90% of job departures. This mismatch can stem from hiring errors or the gradual realization of incompatibility. The financial implications are substantial: replacing an employee often costs several times their annual salary. Against this backdrop, we wanted to explore what happens when people are moving into new roles at a different company. How consciously do they examine culture as a factor of choice? What, if anything, do they do to explore and dig around in the potential new culture? What happens if that goes well? And what can transpire if they fail to consider it, or to identify a bad fit? We also include the fruit of ongoing research from INSEAD professor, Graham Ward, (one of the authors of this article), who tends to take an even more focused approach to understanding corporate culture’s impact on individuals, placing his lens on that of the leader or immediate boss her/himself. His recent article about “Bad Boss Habits” explores this in more depth, and is a superb complement to this article. We examined three deeply contrasting case studies to explore these questions, starting with the hypothesis that most people do not adequately evaluate culture fit with either organization or manager before making a move. Here is what emerged.
Missteps and misfits: Grazia’s journey through corporate culture clashes
Growing up in Italy, close to the corporate headquarters of industrial companies, Grazia was deeply influenced not only by her hardworking parents, a surveyor and a nutritionist, but also by the father of a friend, whom she encountered frequently at family lunches. His role in HR at Fiat, and earlier, Lavazza, had given him a perspective on the People function that was remarkably modern for the time. Under his influence she chose to study Economics, with a specialty in Human Resources, at the local university. A year spent abroad in Slovenia opened her eyes to cross-cultural issues, and gave her a fascination for the world at large.
This predilection for faraway horizons led to her career beginning with oil and gas company, ENI, in Africa, supporting an HR director in Angola, which early on gave her the opportunity to lead a mobility team consisting of a handful of “women who were my mother’s age”, but she thrived on the learning, particularly the problem-solving involved in helping expats and their families to manage unfamiliar and often hostile contexts. During her next posting, to Indonesia, she worked more on Talent and Development, becoming interested in coaching also. Her self-awareness grew fast, and she soon realized that the joys of giant multinational companies might not last forever.
Back in Italy, Grazia weathered a couple more years at her company’s headquarters, but finally succumbed to the temptation of looking to more entrepreneurial environments, bagging a role at a large scale-up, to work, initially on performance management, then L&D, and finally covering the full HR leadership. Alongside her team of 20 people worldwide, Grazia found great satisfaction in building new things, and enjoyed the inspiring culture, to which she contributed by ensuring it remained one based on trust and respect, with plenty of room for innovation and mistakes.
When her company was acquired by a larger entity, she chose to stay. Cultural changes occurred, but her influence helped ensure the transition was well managed and positive. But the call of a headhunter, with a flattering offer to join an ambitious scale-up, with an explicit promise of leading the entire HR function within a short time, was too much to resist. She felt flattered and excited.
How thorough was her due diligence? Well, Grazia certainly did a lot of interviews with the recruiter, and the HR Director who promised her his role within a year or two, but she did not contact those few more junior people from her old company who were now working at the new one, to test the waters with them. This turned out to be a huge mistake.
She left her old company on a Friday, and joined the new one on the Monday. The old company had done all they could to keep her, and yet her ambition to expand prevailed. From day one, her instincts had her asking “Where the hell am I?” She was staggered by how immature the team was, and at the lack of organization overall. Another major sign that all was not as she had hoped was that the company purported to be global, and yet everyone in the Milan office was Italian, coming from local schools, and with a blinkered perspective on the world. Not at all a fit. However, Grazia being naturally an optimist, she assumed the best. Her confidence was bolstered by a former team member joining her, fostering a sense of camaraderie and reinforcing her belief that « we can do this together. »
However, the hidden culture of the company, despite promises of the opposite was that of an old boys’ club, with a great deal of “bitching and decision-taking with no consultation”. But, ever the optimist, Grazia told herself that she could change this bro culture. As she got settled in to the HR team, she could see that much of the worst of the culture was coming from her boss, and she wondered if she was the only one to see the dysfunction. Soon enough, on having private conversations with the three female management board members, Grazia realized that her misgivings were justified. Most of the three were “only just holding it together” and not far off resigning.
The company stated being inspired by “Amazon Leadership behaviors”, but in reality there was less freedom and more a desire to impose what one HR leader alone wanted. He was not open to exploring what was needed. Not to mention the comments that wafted around regarding the female leaders, including “she’s leading like a mom” and other gaslighting comments.
Grazia did her best to create the necessary change, but was mostly pushed back by her manager, who was not, in fact, going anywhere, despite the promise of career progression he had made. He continued to gaslight her and played other terrible mind games, which showed her conclusively that he was never going to welcome nor accept her power.
Grazia asked to extend her trial period – which was unheard of and took the leaders by surprise. She was becoming so unhappy in her work, due to ongoing abuse and harassment, that she began having dark thoughts. On one morning commute, she actually found herself wishing she would be in an accident, rather than going to work. As it turns out, the harassment was not limited to her. It was generalized. The only realistic word to use to describe the culture was toxic – from top down.
One final incident, in which Grazia was left to defend herself and the company for a substantial compliance error, decided her. She resigned, and, astonishingly, they tried to get her to stay. Her boss asked whether, if she got the full HR role, she would stay. Not surprisingly, her answer was negative. Even six months on, they were asking her to come back, with total “blindness to what had actually happened”.
Grazia’s verdict? “The organization was very sick, and needed more than one doctor to fix it. It needed the leadership to behave well, and that was not happening.” Despite this experience, she believes that it is truly possible for organizations to make profits and take care of people. But she is understandably taking her time to land on her next role and will conduct a great deal more investigation this time.
Nassim: from meeting others’ expectations to chasing your own dreams
Nassim grew up in Algeria, where his early years were easy – the son of a doctor, with a comfortable school and social life. But with a sudden change in political regime, and a credible threat of assassination made to his activist father, things turned quickly upside down when he was 9. Father left on the next plane to Paris, with Nassim, the eldest, feeling confused, concerned and responsible for his siblings and mother, while they waited for next steps. He had grown up overnight.
Several months later, Nassim and the rest of the family followed his father to France. As he expresses it: “meeting new people in a new country with new challenges stimulated me, and I learnt to enjoy the experience”. It forged him, but he felt under pressure “not to screw up, so that all the sacrifices that had been made would not be in vain”. And so Nassim embarked on a life of people-pleasing and doing what was expected of him, rather than necessarily being conscious about what he himself wanted. He went to the right schools and took the expected steps to make himself into a typical “successful young French man”. After his engineering degree, he went on an internship back to Algeria, where he was given much responsibility in rebuilding a power station.
After this initial work experience, Nassim joined a large offshore engineering firm, Subsea 7, where he thrived in the on-vessel operations, “in the heart of the business, and feeling enriched by the breadth and intensity of the cultural and social mix”. Subsequent moves to a head office role, followed by an assignment to assess an acquisition in Singapore began to round out his experience, but he felt a need to develop more finance knowledge, and chose to do an MBA. It was during the intensive study time that Nassim finally began to see to what extent he had been fulfilling the aspirations of “others”, as opposed to pursuing what he truly wanted.
He tried startup life in Sweden, but that did not work out. In the end he felt compelled to revert to what seemed “safe and sensible”, returning to Subsea 7. Immediately, he realized that, despite the “nice roles and responsibilities” he was given, he did not feel valued or recognized as he had previously, and his motivation levels dropped dramatically.
A call from a former colleague he liked and trusted piqued his curiosity. The offer was to join his company, Enshore Subsea, in a similar field, but it was a much smaller venture. Nassim explained: “I’m interested in a change, but not to be a project manager yet again”. This led to a series of discussions, with the former colleague, as well as with the company CEO. It was perhaps the CEO conversation that was the most revealing and ultimately decisive. The leader took the time to listen to Nassim, encouraging him to express all the ideas he had about the business, and this exchange led to an offer to become the Strategy Director – a role created to fit Nassim’s talents and aspirations, as opposed to just squeezing him into a convenient pigeon-hole.
An opportunity to have a meeting with the full team Nassim would collaborate with was also eye-opening. There was no sense of mistrust or threat – “just a bunch of people who seemed keen to explore how the organization could grow and improve. They listened to me; they included me, and made me feel my point of view counted”. The former colleague backed up this perception by discussing with Nassim how, on the one hand he knew what he was coming from, and on the other, he could reassure, from experience, that Inshore was like a better version of the old place in its earlier, more innovative and open times. Nassim still had questions around the quality of work – standards, safety, process, etc. – and his contact was able to use the right common language to be of assurance on this aspect. He was also able to point out that InShore was a diverse place and committed to a great culture, and his anecdotes and answers were exactly what Nassim needed to feel safe to “cross the bridge”.
Nassim experienced a moment of uncertainty when he discovered that Inshore had previously been a subcontractor for his old company, and the relationship had not ended well. But with several explorations as to why and how, he could see that the more challenging aspects were things that he could directly influence and fix, and that in this less “top-down” environment, he would genuinely be able to make that improvement happen. He realized that if he wanted to have impact, he was being given the power to influence outcomes in the new role, whereas his voice was no longer being heard in the old. With a “what’s the worst that can happen?” in mind, he took the leap.
His first major assignment looked almost impossible on paper: the creation of a strategy book for presentation to the board in less than two months. Not only did he manage it, having made certain to understand the stakes and manage expectations, but also he got a seat on the board of advisors, as a result. He has enjoyed setting up a Paris office, bringing general management and leadership depth to his work. And he loves the culture of abundance, as well as the grit of “trying new and tough things, then seeing them through to the end”. Curiosity and innovation are encouraged at all levels, and Nassim’s ideas are flourishing. “It’s all the beauty of being an entrepreneur, but without worrying about the end of the month!”
It is most unlikely that Nassim will be making a rapid move away from this new organization, for which he is so well suited, but if he were to change, he would be well equipped to do so, pulling on all the levers of curiosity, investigation, open dialog with sometimes difficult questions and more, which he used to such great effect this time. His smile that prevailed during the hour-long interview says it all.
Sade: navigating leadership and culture in a new life sciences company
There was never any question nor debate about whether Sade would go to university, as she grew up in Europe. Her Nigerian-born parents worked to a model of excellence and aspiration, and the only question really was whether she would follow her mother’s wish that she choose medicine, or her own, more pragmatic option of a broader STEM degree. Her plans were detailed and strategic, leading her to join a global life sciences company’s prestigious graduate program, shortly after graduating.
Her first conclusion was that despite enjoying the sciences of R&D, she was far more inspired by leading teams and projects, thus seeing the fruits of her labor. As a result, manufacturing became the focus, allowing her to keep a technical aspect to her work, but also to pursue various cross-functional team opportunities, which rapidly led to her first leadership roles, first on a European site , and then across the globe.
Fortunately for Sade, the company invested heavily in their people, and she was constantly being coached and mentored by other leaders, even though she did not recognize this as such at the time. But of course the leaders in question did not look like her. She was used to being “the first” or “the only” person of color in almost every area of her life, and her ascent in this company was constantly breaking barriers too. Every time she took on a new role or responsibility, she was fed positive messages about her capacity to learn and grow, adding any missing skills, and with the assumption that what was needed was a person who could inspire the team and create growth and value.
Having reached a very senior role, but with a new CEO in place, Sade was aware that she might be stuck in her current role for longer than she would naturally like or thrive in. She even wondered if she would at some stage become a “blocker”. she asked herself what could be next.
Sade’s interest and talent in networking all along her way paid off at this point, and friends and connections facilitated several conversations, amongst which was one with another global life sciences company. This dialogue contrasted favorably with those she had at other similar giants, but what she particularly appreciated was that the Talent team took a long-term view, presenting her with a series of potential roles for exploration, until the right one came up. She could see that technically, there was a perfect fit, and with this confidence in terms of subject matter, she could take the time to “learn” the culture. But beyond just the learning, she needed to be sure she would like it. She deeply and diversely interrogated her network, obtaining perspectives on many leaders. She read widely, from the company’s own publications, to those commenting on it. She also invested in a coach to help her envision and plan for her transition.
Serendipity played its role also, as there was a face-to-face meeting of her future team in Europe. She was already confident of the fit, knowing that this was not a make or break event. An additional dimension was that her future boss had been leading this team previously, so the interim phase landed perfectly for a first encounter. There was an opportunity provided by an informal team building activity, for her to connect personally with most of the team members, and although she did not know it at the time, she was even able to impress and appease a team member who had been up for her role, This week-long event afforded the chance to take the temperature of individual and group culture, and her conclusion was that she could bring her skills of developing longer-term vision and direction.
A “newbie” status turned out to be a rather valuable tool. Sade was able to drink in the culture of continuous improvement, but also to bring curiosity and a desire to understand the collective pride in the legacy of the company. She enjoyed bringing external perspective to the team. Another enormous contrast came in the form of a heavily relationship-based culture. She was given a recommendation not only to avoid being consumed by the job but also to create time and space, to reflect on how she was doing with broader stakeholder relationships and how to push her influence even further. Further support came from a coaching cycle deeply focused around her onboarding, and there was much time spent on check-ins, 360 feedback and so on. An extra aspect to her successful integration was her inclusion in a week-long program for incoming leaders. This was especially crucial, as the company has a unique culture and the closeness with others who were not familiar with it gave context and perspective, as well as a chance to feel that she was not “wrong” in her sensing of what was going on around her. And finally, the irony did not escape her that she had been an “old timer” in her previous company, and was now confronted by a different tribe of “old timers”, with whom she needed to engage. But this time, she had the toolbox with her.
Four years on Sade claims to be deeply happy. She is achieving across many dimensions especially making an impact on people”. She is confident enjoys the relationship with her boss, and thrives on all the candid conversations she is creating around her. The old-timer is as shiny and new as she chooses to be.
From shiny objects to true fit: key insights on evaluating company culture before making the leap
Sade, Nassim and Grazia’s stories could not be more different, but they clearly indicate the good, the bad and the ugly about the stakes of understanding cultural fit when taking a new job in a new company. We are still left somewhat perplexed about why so many talented professionals make a jump to a new place without extensive research, but the fact is that they do, with consequences as bad as, or even worse than, Grazia’s experience.
Is it the “shiny object syndrome”? Is it a sense of moving away from one thing that has gone bad, and toward something that “might be better” – the proverbial greener pasture? Is it the sense of excitement about the new possibilities and new colleagues? There are clearly numerous factors at play but what is clear to us is that
thorough due diligence is crucial. Our three stories underscore the importance of deeply investigating a company’s culture before joining. Beyond gathering data and “intelligence” about your potential next employer, you need to pay attention to red flags during the interview process and trust your instincts. If something feels off, investigate further before making a commitment.
The stories also confirm the criticality of aligning personal aspirations and values with the company culture and values, as Nassim’s story highlights. Sade’s journey between different life sciences companies illustrates the power of strategic networking and adaptability in finding the right cultural fit. Her meticulous approach, consulting with her wide network and engaging in cultural immersion activities, ensured her smooth integration and success At her current company. Finally, and critically so, both Grazia and Sade’s experiences highlight the importance of cultivating a support system and prioritizing self-care when transitioning into a new role, whether through coaching, mentoring, or simply setting aside time for reflection. It is worth the effort of understanding the new, prior to making the leap and we hope that these stories serve as lessons, as we’d love to see the failure rates begin to reverse one day soon.
Eight tips for making a successful leap to a new culture
- Be clear about your personal values and aspirations and ensure that the company’s culture aligns with these. Look for signs of a supportive and inclusive environment where your contributions will be valued and your growth supported.
- Dare to dig: make a conscious decision to find out what the new culture is. Ask about “How things are done around here”. Understand that how you do things may end up being more important than what you do.
- Go deeper: understand that your new manager might lead a sub-culture of their own that differs from the overall company culture. Figure out what that is.
- Read – but not just the website. Any corporate website is going to show you only the most shiny side. You need to research all the good and bad of this place in which you are potentially going to be spending the majority of your time.
- Find multiple reference points: ideally at different levels in the new organization, and even better some of those who know you and your old environment. Grill them, pay attention to red flags during the interview process and trust your instincts. If something feels off, investigate further before making a commitment.
- Insist on meeting your new team, ideally in relaxed circumstances. Both together and individually if possible. And where feasible, do some work together before committing.
- Build and deepen your network constantly, so that you have points of reference to whom to turn when you need insight into a new organization.
- Assume you will need to “learn” a new culture, even if you believe the fit will be good. Even the best marriages take work and assimilation. Leverage your network to gain insights and support your cultural adaptation during your onboarding.
- Cultivate a support system and prioritize self-care when transitioning into a new role. Regular reflection and seeking external perspectives can help you stay grounded and effective in your new environment.
10 questions you can ask in an interview to uncover the company culture
1 – What do you like about working here?
2 – How is this organization different from the competition?
3 – How would you describe the company’s core values? How are they reflected in day-to-day operations? What are some examples of how the company’s leadership team embodies the company’s stated values?
4 – What are the unwritten rules or informal norms that are important for someone new to the company to understand?
5 – What are some examples of how the company’s culture has evolved over the past few years, and what prompted those changes?
6 – What do you wish you’d known before starting here?
7 – What would you change about this company if you could?
8 – How would you describe the leadership culture in this department? How are team members recognized for their success?
9 – How does your organization address failure?
10 – How does the organization handle conflict or disagreements among team members?
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