I’ve always stated that while cash compensation and benefits might be the largest factors for attracting talent, they are by no means the factors for which employees stay with the organization. In order to have high employee retention you have to have great employee engagement and a solid employer brand (or employee value proposition).
Looks like times are changing and I might be wrong.
Sean Rehder of Talent Ecology directs us to an article published in Management Issues. The title of the article boldly states that “culture and reputation count more than money in the war for talent.” Unfortunately, Management Issues and author Nic Paton don’t do a great job convincing me (and I was ready to believe before I even started reading).
An international survey of more than 500 HR executives by global talent management firm, Bernard Hodes, has found that the quality or reputation of products and services, the corporate culture and the work environment were a business’s most important attributes when it came to bringing talent aboard.
Ethical reputation also scored highly. But benefits and compensation were, perhaps surprisingly, bottom of the list. 1
If the Bernard Hodes survey had stated that compensation and benefits were ranged just below the employer reputation in factors that influence the job seeker’s decision, I’d believe it. However, I think we all intuitively know that few people look for a job based on reputation with selfless disregard for their own situation. So yes, basically I’m calling the Hodes survey crap in the light of significant other research that says comp and benefits are still leading attractors, but that those become less important the longer employees stay with an organization.
Looks like times are not changing – I’m not admitting I’m wrong yet.