Beyond the salary: The power of workplace culture in employee satisfaction and retention

Since the economic downturn, companies have largely been focused on compensation as a major factor in retaining employees. They have struggled to raise salaries to keep up with rising inflation and provide benefits packages that keep employees from leaving.

But according to recent research by LinkedIn, job seekers, and employees are looking for much more than just financial benefits and workplace culture is now a major deciding factor when applying for jobs. In fact, 59% of European professionals wouldn’t want to work for a company that doesn’t share their values, and 55% wouldn’t even be swayed by a pay rise if the culture of a company didn’t align with their values. The values prioritized by these workers included work-life balance, career growth and learning, and diversity and inclusion.

With access to company reviews and social media platforms, candidates have more information than ever before about a company’s culture and values. This means that companies need to be transparent about their values and the ways in which they support their employees.

LinkedIn’s research also found that job seekers are doing their due diligence before accepting job offers. With access to company reviews and social media platforms, candidates have more information than ever before about a company’s culture and values. This means that companies need to be transparent about their values and the ways in which they support their employees.

Going beyond competitive salaries

Furthermore, the data from LinkedIn’s research suggests that companies need to go beyond just offering competitive salaries and benefits to attract top talent. Professionals feel confident asking questions around flexibility (65%), opportunities for self-expression including dress code (58%), and company policies around festivals and holidays like Ramadan (47%). This highlights the importance of a company’s culture and values in attracting and retaining top talent in today’s job market.

While pay remains an important factor, it is no longer the sole motivator for employees. Acknowledgment, growth opportunities, feeling valued, trusted, and empowered are equally essential. Frontline workers, in particular, voice a desire for respect, and all employees want to bring their authentic selves to work.

In short, people seek purpose in their lives, and work plays a significant role in fulfilling that purpose. Employers who limit opportunities for purpose-driven work, community-building, and deeper relationships with employees risk losing them. The era of the employment contract that was purely transactional, based on monetary compensation, is long gone. Today, employees expect more than just pay. They want purpose-driven work that creates a sense of community and personal fulfillment.

How employers should respond to improve their workplace culture

Therefore, companies that want to attract talent need to demonstrate a genuine commitment to diversity and inclusion, offer competitive salaries, put effort (and money!) into developing their employees, offer flexible work schedules, and have good policies around insurance, retirement, and parental leave. Employers should recognise that job seekers are looking for a positive work environment that aligns with their values and priorities.

The focus on compensation has been a traditional approach to attracting and retaining talent. However, as LinkedIn research shows, job seekers are looking beyond just financial benefits when considering potential employers. This means that companies need to adjust their hiring strategies to reflect these changing priorities.

Employers need to emphasise creating a company culture that aligns with the values and needs of potential employees. This includes offering flexible work schedules, opportunities for career growth and learning, and demonstrating a genuine commitment to diversity and inclusion.

Employers should also prioritise transparency in their hiring processes, such as being open about company policies and expectations, as well as offering clear opportunities for advancement and development. This can help to build trust with job seekers and create a positive candidate experience.

Finally, companies need to be willing to invest in their employees by providing ongoing training and development and offering competitive salaries and comprehensive benefits packages. This can help to create a sense of loyalty among employees and reduce the likelihood of turnover.

Employer Value Proposition

A well-crafted EVP can help organisations attract and retain top talent, as it communicates the organisation’s values, culture, and overall commitment to supporting its employees.

By focusing on creating an EVP that aligns with a human-centric approach, organisations can better demonstrate their commitment to their employees’ well-being and development, which in turn can lead to increased engagement, motivation, and productivity. This requires strategic commitment, leadership, culture development, and thoughtfully applied technology, as well as a shift in performance management to reflect more context and empathy. As such, incorporating a human-centric approach into an EVP can be a powerful tool in creating a workplace culture that prioritises employee well-being and supports sustainable performance.

A great Employee Value Proposition (EVP) is made up of several key components. These include:

Location Flexibility

Location flexibility is about offering a range of options that balance sustainable business growth with maximum choice for employees. This could mean offering fully remote work, a hybrid model that allows employees to work in person a few days a week, or something in between.

Time Flexibility

Similar to location flexibility, time flexibility is about providing options that encourage freedom and productivity. Companies should consider which approach will work best for their unique business needs and employee preferences.

Benefits

Benefits are an important part of the employee experience and can help build a positive company culture. Employers should think about what they can offer that will add value for employees. This could include enhanced maternity leave, work-from-anywhere schemes, or even a dog-friendly office.

Culture

Creating a strong company culture is crucial for attracting and retaining top talent. Employers should define the values and behaviors that are most important to their company. For example, is your company focused on efficiency, trust and autonomy, or building a diverse team? Whatever your values, they should be the foundation of your company culture.

Purpose

Many employees today want to work for a company that has a clear sense of purpose. Employers should be able to articulate why their company does what it does, why it matters, and why employees should care. A well-defined purpose can help employees feel connected to their work and motivated to contribute to the company’s goals.

Differentiators

Employers should consider what sets their company apart from competitors. This could include anything from competitive salaries and unparalleled progression opportunities, to job security and excellent learning opportunities. Whatever the unique selling points of the company, they should be highlighted to attract and retain top talent.