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Which Matters More? Culture vs. Salary

Published on November 30, 2016 |

Most managers think employees are motivated by salaries. The vast majority of workers, however, are driven by other factors. Today’s employees are looking to company culture—its values, community, and practices—to find significance in their lives and careers.

This emerging workforce has three priorities:

Flexibility—in scheduling and location that allows involvement in non-work activities.

Development—online courses or mentorships that promote advancement and personal growth.

Goodness—company and employee participation in socially responsible causes.

Businesses that adapt will be better able to attract and retain top talent—creating a winning culture that boosts productivity.

Initial steps you can take:

  • Imagine the workforce you desire to have.
  • Get input and feedback from employees.
  • Start small, building culture through them.

Staying Competitive with Salaries

How you handle salary negotiation is critical in keeping or hiring top performers. Don’t risk losing them over relatively small differences in compensation.

Consider: an extra $10,000 in annual salary translates to roughly $550 per month after taxes. That’s a new car payment, extra groceries, or a family vacation. Isn’t that worth the productivity you’ll gain?

  • When it comes to salaries:
  • Make a competitive offer.
  • Be prepared to negotiate up.
  • Know your best offer upfront.
  • Treat counter-offers seriously.
  • Say “yes” more than “no.”
  • Close quickly and graciously.

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