How Important Is Corporate Culture for Attracting and Retaining Young Talent?

Corporate culture is a term that is often used – but frequently underestimated. Yet it plays a decisive role, especially in the competition for skilled professionals.

Recently on a train, two young people were having a conversation. One of them was a dual-study student at a major software company. He mentioned that in his class there were also students from a large, traditional chemical corporation – and that these two groups represented completely different corporate cultures. As the conversation continued, it became clear that even early on, during their first or second semester, young talent already begins to adopt and strongly identify with the values of their respective companies. For this young student, these were two entirely different worlds.

What Exactly Is Corporate Culture?

As executive search consultants, we experience this “culture” in every conversation we have with company representatives. Every organization has its own culture – shaped not only by leadership, but equally by the workforce. It is defined by shared values and norms that influence how decisions are made, how teams collaborate, and how leadership roles are fulfilled.

Corporate culture can be reflected in communication styles, hierarchical structures (flat or steep), or even dress codes. Some companies are known for offering strong employee benefits; others focus heavily on sustainability. They may aim to become CO₂-neutral quickly or support environmental projects, which influences how decisions are made. Likewise, innovation culture, inclusion, and diversity leave their mark on corporate culture.

Guidelines are often created to strengthen company culture. In our daily executive search practice, however, what truly matters is whether these values are genuinely lived. Declaring an open feedback culture or promoting work-life balance is not enough. HR leaders and managers must demonstrate that they truly mean it – for example, by supporting flexible working hours or remote work arrangements that help employees balance family and work. Appreciation, too, is only authentic when it shows in respectful communication.

Cultural Fit Matters in Recruiting

Corporate culture often determines how comfortable employees feel – and therefore how productive, motivated, and loyal they are. For attracting young talent, corporate culture has become a key factor: during recruiting, organizations increasingly focus on “cultural fit” – candidates should ideally match the company’s culture. Research shows that the more employees identify with their employer, the higher their willingness to perform.

At the same time, many professionals also actively look for a work environment they can identify with. They not only look at job postings, but also check employer review platforms to learn more about potential employers.

Start-Up or Traditional Company: Cultural Fit Is Crucial Everywhere

In small and mid-sized companies, corporate culture is often shaped strongly by the founder or senior management. Start-ups, on the other hand, are generally associated with informal communication, flat hierarchies, and no dress codes. Large corporations today are often optimized for shareholder value, and some traditions may only be remembered by long-time employees – yet the corporate “DNA” is still noticeable. This may show in clear hierarchical structures where formal address is still common, certain approval processes are lengthy, but where employees also benefit from strong workers’ councils, employment guarantees, or perks such as company sports programs and pension plans.

As executive search consultants, we advise our clients not to underestimate cultural fit – especially if they want to retain young talent like the dual-study student on the train in the long run.