When job is not just a salary

Good compensation is just the starting point to attract real talent

2019 should be the year to do it. The youngest of the generation you are about to employ are about 21, and among the best and the brightest, having wrapped up degrees from the premier engineering, medical or management schools. Chances are you need them more than they need you, as talent will be the winning factor in tomorrow’s super-competitive marketplace.

So how do you attract them to your company? That’s the question most old-world companies are grappling with. The human resource (HR) director of a conglomerate, who is back from a series of campus interviews at Indian Institutes of Technology last month, says the lesson he has learnt is simple: His group companies have to tailor their HR initiatives to address the “whole person” rather than just the one in the office cubicle. And that, he says, will be his new year resolution.

To most people in the corner offices in their 40s or 50s, this may read like a fuzzy HR jargon, but it’s time they smelt the coffee. For, this involves top-drawer Gen X, or Z, or millennial talent who are spoilt for choice as far as job opportunities are concerned. For many of them, a job is not just a salary — it’s a lifestyle. They consider monetary incentives as given, and focus on emotional rewards. The HR head says they want to feel good about their work and want to work for a company that makes an impact on society at large. One of the most common questions he faced from candidates this year was how the company was planning to give back to society.

Legally-mandated corporate social responsibility (CSR) funds are clearly not enough. The HR head is now planning to offer paid time off for staff to attend charity causes, which is in tune with the demands made by many of the candidates. Indian companies would do well to take a leaf out of the books of companies such as Microsoft. Aside from all of the extravagant benefits that it offers to compete with peers, the tech giant has a firm commitment to giving back by matching employee charity donations up to a fixed amount per calendar year. That’s a big hook for young people looking to enter the premium job market.

A survey done by EY has some other important pointers to what else they are looking at. The top five important factors for Gen Z are: “treats me with respect”, “behaves ethically”, and “communicates openly/transparently”. Gen Z women are more likely than their male counterparts to consider inclusiveness as an important factor.

Interestingly, when asked who they would trust when making an employment decision for their full-time jobs, Gen Zers said they were very likely to trust their mothers. In fact, mothers made the top five influencers for Gen Z regarding employment decisions in all eight countries surveyed, including India.

Companies also have to demonstrate that they are invested in their employees’ futures to inspire them to invest in their employers’ business. That’s because youngsters, many of whom are launching start-ups from a couch, want independence and choice. They are looking beyond the paycheck when it comes to deciding where to work — providing opportunities to learn and grow is a top priority. Almost all of the companies coveted by young employees offer that, whether it be in the form of supporting education and reducing student debt, allowing for flexible working conditions or supporting the health and family priorities of employees.

Since remote work is more the norm today, many employees find themselves always on, constantly connected to their work email or available for business calls. Establishing a culture of work-life balance and flexibility is therefore the way to go. In fact, working from home has become old school; many companies are offering an empowerment culture that offers unlimited paid time off so long as their tasks are done. And companies like Cisco have a culture of recognition, which shows in their programmes that allow employees to recognise others with cash rewards. 

But don’t get it wrong. It’s not that money is less important for the youngsters. That remains the biggest negotiation tool. So when you find a talented youngster, offering a substantial market value salary is a must, as no one wants to feel short-changed. The point is that’s just the starting point.