Shifting Priorities? The Relative Importance of Pay to Job Candidates

While pay continues to be a leading factor in attracting top talent, some employees indicate other factors — such as a business’ brand and reputation or organizational culture — may weigh more heavily than compensation in their decision to work for a company.

Webinar: Beyond the Paycheck — Optimizing Compensation Decisions and Employee Communication

Parsing out just what will attract new talent can be a complex equation, with the relative importance of pay shifting based on candidate demographics, job type and level, and a variety of other factors. Consider the following research snippets:

Having a prestigious brand, inspiring vision and great reputation as an employer were the top considerations for joining a company for U.S. employees (Brand Finance).
More than half of workers in several related studies — 85% of respondents in one — would rather work in a high-salary, “low-meaning” job rather than prioritizing meaningful work for lower pay (University of Illinois). “From workers’ perspectives, meaningful work may be nice to have, but high salaries may be crucial,” said Sarah Ward, a professor of business administration and the study’s author, in the research paper.
64% of workers are open to new opportunities because they need a higher salary (Workable).
77% of employees would consider a company’s culture, and 79% its mission and purpose, before applying for a job — and 56% prioritize culture over salary for job satisfaction (Glassdoor).
32% of workers would take a pay cut if it meant they could work from home as much as they wanted (TeamBlind).

“Organizations that effectively communicate their vision, culture and impact stand out to potential employees,” said Laurence Newell, managing director, Americas, at Brand Finance. “The rise of remote and flexible work options has also broadened job candidates’ perspectives. They can now choose employers based on reputation and culture rather than just location.”

WorldatWork members can access a bonus Workspan Daily Plus+ article on this subject:
How to Understand What Matters Most to Job Candidates

The Role of Demographics

Younger workers are more vocal than previous generations about wanting to work for employers that are environmentally and socially conscious and inclusive, said Gordon Frost, global rewards solution leader at Mercer.

“A lot of employers have told us they’re focusing on inclusion or sustainability partly because the employees they’re trying to recruit are demanding it,” he said.

Life circumstances also dictate priorities, Frost noted. For instance, in industries that heavily employ recent immigrants — who may be trying to build a new foundation while also supporting family members in another country — workers are more likely to ask for overtime opportunities than well-being benefits or flexible schedules.

Job Type and Level

Pay generally is the highest priority for candidates in hourly or lower-wage jobs, said Boncho Bonchev, a North America talent acquisition solutions leader at Mercer. And certain job levels, sectors or industries may lend themselves more toward prioritizing salary over other factors.

For instance, when considering a white-collar, salaried job, a younger employee may be more likely to turn down an opportunity at a company that does not align with that candidate’s political or personal beliefs, Bonchev said.

“But within the manufacturing segment of that [same] company, I’m taking that job, because not only is it well paid but it also guarantees me employment, and I don’t have to have three jobs to meet my family’s financial needs,” he said.

With so many factors contributing to candidates’ top priorities, how can employers shift their recruitment strategies and messaging to drive successful attraction? WorldatWork members can click here to read expert tips for employers.

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics: