Industry experts have warned companies will face mourning challenges if they prioritise salary over promoting culture in the work environment. A recent study by Workbuzz has reinforced data from other reports suggesting that workplace culture attracts talent more than salary or flexible working.
The study found that 45% of UK employees and business leaders place a ‘great’ culture as the highest priority when looking for a new job. The report of 300 UK business leaders, HR professionals and employees for the State of Employee Engagement report discovered that the main factor for applicants is a consciously created culture that provides the best employee experience, followed by salary (31%) and challenging work (28%). The other more important factors were considered flexible working arrangements and opportunities for career progressions (both standing at 27%).
According to Claire McCartney, resourcing advisor at the CIPD, the research suggests that in the current conditions, money is not the decisive factor in attracting and retaining talent. While the cost of living crisis is impacting everyone and competitive salaries are critical, many employees are also seeking supportive working cultures, opportunities for career progression and flexibility in the workplace. McCartney explains that candidates are looking for meaningful employment opportunities that are both personally and culturally rewarding, not just jobs with good compensation.
Jill Cotton, a career trends expert at Glassdoor, explains that increasing pay isn’t necessarily the solution for employers looking to maintain happiness and good morale in their workforce. Cotton points to culture as a decisive factor in terms of candidate retention. Cotton explains that once working, the company culture and values far outweigh compensation and benefits when considering employee satisfaction. People are looking for employment that provides a positive environment, and has missions and values they can relate to.
The report also discovered that employee engagement and experience were HR priorities for 44% of respondents. This figure was followed by attracting and retaining talent (32%) and culture (31%). Despite this, approximately 37% of businesses state that organisations check with their workforce by conducting quarterly or more frequent employee needs and sentiment surveys.
Tim Grimes, the co-founder of WorkYourWay, said that pay remains a significant part of the candidate decisions, particularly with the current economic conditions. We must remember that this is only part of the process, and most candidates will not make decisions based purely on pay. The candidate closely explores the cultural elements, like flexible working and benefits. Creating a positive culture is one where people take more control over their lives.
Jane Ferre, executive career coach, has warned that all businesses are experiencing a challenging time and should ensure that money shouldn’t be considered the priority. Ferre believes those that will succeed during these difficult times will take the time to attract new hires and offer flexible working schemes with professional development opportunities for all. Without these factors, a business can lack the culture people are looking for and be a significant driver in people leaving an organisation and moving elsewhere.