Non monetary benefits are as important as monetary benefits in a compensation package. In fact, they actually give companies freedom to curate an attractive package that potential employees would get excited about. This is the second part of the 2-part series we have written on the topic of strategies of attracting talent. This will help you create a compensation package that attracts the best employees to your organisation. If you haven’t read part one, click here to read it. Otherwise, continue reading.
The Art of Attracting Talent, Method 2: Non-monetary
Is cash always the king? According to a report by Northstar, 65% of employees prefer non-monetary benefits over monetary benefits. Which is exactly why you need a strong non-monetary benefit component in your offers to attract great talent. Let’s have a look at some of the effective benefits that you can incorporate into your offers.
1. Company Culture
Is defined as a set of shared values and practices that define an organisation. It contains both the internal, as well as external practices that are a part of its public image. If your company has a well defined culture, then you are more likely to attract top talent that prioritises those values. Here are some things to focus on while developing company culture.
1.a Write good job descriptions
A job description is one of the important documents a candidate sees and has the most impact in attracting great talent. Make sure that the job description is clearly written, accurately describing the duties and responsibilities of the job, required skills, experience and qualifications, and most importantly the compensation package and benefits.
Here is an example of a poorly written job description:
1.b Easy application process
You have to avoid friction as much as possible while creating an application form. Endless data points and multiple page interview forms are not ideal in attracting great talent. An easy and straightforward application process can help to improve the candidate experience. This makes the candidates feel veiled and appreciated. Other benefits of having a simplified application process is time saving, improved accuracy, and increased application satisfaction. Take a look at how TESLA accepts candidate applications for their top roles:
1.c Updated Employee Value Proposition
An EVP or Employee Value Proposition is a document outlining the set of associations and offerings provided by a company in return for the skills, capabilities and experiences an employee brings to the organisation.
An updated EVP differentiates you from other companies and makes it clear for candidates and gives them reasons to join their company. It is an effective way to attract top talent.
1.d Be intentional with hiring process
Recently we have seen mass layoffs in major companies. Even though people are blaming the recession, companies are to be blamed up to an extent. A lot of hiring is done without long term consideration or without being intentional. Apple is a great company that does intentional hiring and avoids headlines on layoffs. You need not be Apple to do intentional hiring. Anyone can be intentional if they put in some time to analyse their business and requirements. Some of the other benefits are better candidate fit, improved employee engagement, increased diversity, better brand image and better decision making.
1.e Employee reviews
Once a candidate is aware of an opening in a specific company, they always check for employee reviews on popular websites like Glassdoor, ambitionbox, etc to understand what the current and former employees are talking about their experience working for a company. Since these reviews are transparent and anyone can write them, candidates rely heavily on them. So it is important to have employee reviews either on popular websites and on company pages. Other benefits are improved company culture, engagement and retention.
1.f Showcasing diversity
Diversity makes a company stronger. It brings a lot of perspectives and experience which is ideal for innovations and engagement. Workplace diversity is a fundamental factor in attracting and retaining top talent. The more diverse your workplace is, the more likely you are to attract the top talent. Apart from attracting a diverse pool of applicants, it also helps company reputation, employee satisfaction, and better business performance.
2. Company Reputation
The first deciding factor for a potential candidate while applying to an open role is the perception of a company. A positive and credible reputation is important to develop, to make it attractive for candidates to join your company.
3. Personal Relationships
People are at the heart of any company and it is crucial to manage talent relationships early on. Traditionally, companies do not go beyond recruitment and onboarding which is why candidates feel isolated and less engaged. Other benefits of managing personal relationships are improved referrals, brand advocacy, trust and networking.
4. Employee Fulfilment
According to TeamStage, only 12% of employees actually quit for more money. But companies think otherwise. Even though employee fulfilment sounds personal, it is one of the reasons why top talent leaves an organisation. There are cases where employee engagement is high but organisations are unable to retain talent – which is usually a result of Employee fulfilment. Let your employees know that their work is impacting positively, and provide growth opportunities aligning with their personal goals. Here are other ways to improve employee fulfilment:
4.a Rewards & Recognition
Rewards & recognition, also known as R&R, is acknowledging outstanding performance and hard work in order to motivate employees using monetary and non-monetary techniques.
4.b Monitoring employee engagement & burnout
Burnout is a mental condition where an employee feels disconnected or tired from their professional life. And engagement is the attachment they have to work. It is important for companies to understand the relationship between burnout and engagement in order to take proactive steps to motivate them back to top performers. Leaving it unchecked might lead to resignations.
4.c Management training
Top management needs to be trained on how to set up realistics expectations and goals that are achievable by employees so that they have a sense of achievement and fulfilment. For new people managers it becomes even more important as they need to be skilled to handle conflict, changes, performance reviews
4.d Status or job title
A job title is a position a person holds in a company and it brings a certain status to them in a social setting. It is important to use titles to attract talent as many candidates consider job titles primarily while considering applying to an open role.
4.e Hybrid work & remote work
Hybrid and remote work is here to stay. Even though the pandemic gave a boost to WFH culture , it will be difficult for people to go back to working from offices on a daily basis. Most of the employees, especially in the tech space, are looking for hybrid or complete remote work as a primary criteria to consider applying for a role. So in today’s diverse world, having a hybrid or remote work environment can bring in top talent to any organisation.
4.f Autonomy
Give employees freedom to work in a way that suits them best, instead of hammering down rules on them. When employees have freedom to decide how and when their work should be done, it will automatically improve their motivation and performance and also companies can enjoy high retention rates. Clear targets and responsibilities should be laid out and tracked but micro management becomes a derailing factor for employees.
5. Career Progression
Create a sense of momentum by allowing employees to explore opportunities and constant learning. People like to move forward in their careers as the common saying goes ‘climbing the corporate ladder’.
Conclusion
In conclusion, attracting top talent in 2023 will require a strategic approach that incorporates both financial and non-financial techniques. The two strategies mentioned in this series of articles are proven to be effective in attracting and retaining top talent. By using non-monetary methods like having a great company culture, reputation, developing personal relationships, creating opportunities for employee fulfilment, and providing ample opportunities for career progression you can attract top talent into your company.
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