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As competition for talent heats up, it can be tempting to increase starting salaries to lure candidates. But, as Nathan Peart writes, this technique may no longer be an effective method for attracting younger talent.
Throwing money at a problem is one of the oldest tricks in the books for a reason – usually it works to some extent.
For those with deep pockets, it can often make things move quicker, prompt a decision faster, and ultimately ensure people feel valued in terms of compensation.
However, for the younger generations entering the workforce, money isn’t talking so loudly anymore. Instead, organisations that are used to dangling triple-figure carrots are finding that its culture over compensation that’s winning the talent war.
Recently, Bank of America increased junior pay to $100,000. While that figure is double the average salary in the US and the UK in intense industries like banking and law, those increases are not having much of an impact on retention or talent attraction.
The stress and pressure that come with the prestige of working in some of these industries is no longer desirable to everybody in the younger generation, and increasingly, nor is the money. An increase in focus on diversity metrics, work-life balance and working for a good cause is pushing hot talent to look at alternative career options and reject chasing compensation as the key motivator for a move. Now mor