It’s a challenge that plagues every leadership team: how to attract—and hold on to—amazing employees?
Many business owners assume the answer boils down to black and white numbers: they need to offer a salary that meets or beats the competition.
And while it’s true that hourly or annual salary is a big factor for many people when deciding whether to join or stay at a company, it’s not the whole story.
In fact, it’s a much smaller part of the story than you might think.
A recent study by Glassdoor and covered in the Harvard Business Review explored six workplace factors that contribute to satisfaction. Salary and benefits turned out to be among the least important factors.
The most important factor? Culture and values of the organization.
Second: Quality of senior leadership.
Third: Career opportunities at the company.
That doesn’t mean that compensation is irrelevant. It’s still important. But as this study shows, it’s far from the only element people consider.
This is critical, because you could throw more money at employees in hopes of keeping them on the team, but if your culture and values aren’t pleasant or don’t resonate with the team, the extra money won’t matter—the employees will still be dissatisfied, and you’ll go broke.
We don’t have to tell you how expensive turnover is.
The lesson: Identify what’s important to your team. Invest in promoting an authentic, positive culture. Invest in good leadership. Get creative when it comes to compensation packages, creating the right mix of salary, benefits, recognition, perks, and more.
Do these instructions sound a little vague? That’s because every company is different. There’s no instruction manual. Your best bet is to seek the guidance of a strong strategic team, including a CFO who can help you crunch the numbers. Let us know if we can help.