07/ 25/ 2007
"I think I may be missing out on some great new hires because my competitors have the resources to offer higher salaries. Is there something else I can offer to make my company more attractive, or is pay the only thing that matters?"
Pay doesn't matter as much as you might think, says Dr. Jana Matthews, CEO of the Jana Matthews Group and co-author of Building the Awesome Organization (Wiley, 2002). "We found that salary is actually No. 4 on the list of factors that influence someone's decision to come work for you," she says. "What's most important is work that is fun and challenging.
"People need to believe in the purpose of the company they work for, and they want to enjoy the people they work with. After all, many people spend more time with their coworkers than they do with their families.
"The third factor is whether they are going to be working for someone who will help them grow as a person and a professional, ask their advice and listen to their opinions. After all of these factors, salary comes into play.
"Obviously everyone needs money, but if the other factors are there, a candidate may be willing to take a lower salary--at least for a while until the company has more financial resources.
"So when you're recruiting employees, be sure to describe your mission and vision for the company, introduce a candidate to some of your sharpest employees and describe how you will help the potential hire grow and develop. Offer them meaningful work with other great people and a personal commitment to help them grow. And if they still focus on the money, then move on to the next candidate. If money is the only thing that matters, it's a big red flag."
