In a highly competitive job market, simply posting open positions and hoping for the best is no longer enough. Today’s top candidates often weigh multiple factors before deciding where to invest their skills and energy. From compensation to company culture, potential employees are more discerning than ever. Below are the top five reasons employees are drawn to a company—and how you can leverage each factor to attract the very best talent.
1. Competitive Salary and Compensation Packages
Why It Matters: While salary may not be the only reason employees choose one company over another, it frequently tops the list of considerations. According to Glassdoor’s 2019 Mission & Culture Survey (1), competitive pay is a critical component that influences whether job seekers consider a role and ultimately accept an offer. After all, salary often speaks directly to how much an employer values an employee’s work.
How to Improve:
- Benchmark your salaries against industry standards.
- Offer performance-based bonuses or profit-sharing incentives.
- Make pay structures transparent, so employees feel confident they are being compensated fairly.
2. Positive Company Culture and Values
Why It Matters: Culture shapes how employees feel day-to-day and affects their long-term engagement and loyalty. LinkedIn’s Global Talent Trends 2020 report (2) revealed that 71% of professionals would be willing to take a pay cut to work for a company that aligns with their values and has a positive culture. This includes everything from supportive leadership and collaborative team dynamics to a commitment to diversity, equity, and inclusion.
How to Improve:
- Clearly define and communicate company values.
- Encourage open communication channels and employee feedback loops.
- Invest in team-building activities and leadership training programs that reinforce core values.
3. Work-Life Balance and Flexible Scheduling
Why It Matters: Employees increasingly value flexibility, remote work options, and an environment that respects their personal time. A 2021 Pew Research Center survey (3) showed that 54% of U.S. workers who left their jobs said it was because they felt disrespected at work or the work hours were too rigid. Offering a positive work-life balance isn’t just a perk—it’s a strategic approach to retaining top talent.
How to Improve:
- Introduce remote or hybrid work policies where feasible.
- Offer flexible start/end times or compressed workweeks.
- Promote regular breaks, mental health days, and encourage employees to utilize their paid time off.
4. Comprehensive Benefits and Wellness Programs
Why It Matters: Beyond salary, employees look at the broader support system a company provides. The Society for Human Resource Management (SHRM) 2019 Employee Benefits Survey (4) indicated that 60% of employees value health insurance as a top factor in their decision-making process. Mental health resources, retirement contributions, and professional development stipends can also act as strong differentiators.
How to Improve:
- Provide robust health insurance plans that cover physical and mental well-being.
- Offer 401(k) matching or equivalent retirement benefits.
- Include perks like gym memberships, wellness workshops, and on-site health screenings.
5. Professional Growth and Career Advancement Opportunities
Why It Matters: Employees don’t just think about their current role—they consider their future trajectory within the company. According to Mercer’s 2023 Global Talent Trends report (5), 80% of employees say career development opportunities play a significant role in their decision to join or stay with a company. When employees see clear paths to promotions, skill-building, and professional growth, they’re more likely to commit for the long haul.
How to Improve:
- Create transparent career path frameworks.
- Invest in professional development programs, training sessions, and leadership workshops.
- Encourage mentorship and rotational roles to broaden skill sets and internal networks.
Bringing It All Together
To attract and retain top talent, companies need to think holistically. It’s not just about offering a high salary or a fancy benefits package—it’s about creating an environment where people feel valued, supported, and challenged. By focusing on competitive compensation, cultivating a positive culture, promoting work-life balance, providing comprehensive benefits, and investing in employee growth, you’ll stand out as an employer of choice.
Sources:
(1) Glassdoor Mission & Culture Survey, 2019: https://www.glassdoor.com/research/
(2) LinkedIn Global Talent Trends 2020: https://business.linkedin.com/talent-solutions/blog/trends-and-research
(3) Pew Research Center, 2021: https://www.pewresearch.org/
(4) SHRM 2019 Employee Benefits Survey: https://www.shrm.org
(5) Mercer’s 2023 Global Talent Trends: https://www.mercer.com
By aligning with what employees value most, you don’t just fill vacancies—you build a workforce that’s engaged, loyal, and primed for success.