I start with a message of hope. Tech candidates are willing to accept lower salaries for jobs with genuine real-world purpose, versus those where the outcome is made palatable because of how much it pays. Yes, you read that right.
At a time when we are seeing costs, from energy, fuel, and food, rise across the board it seems strange that for many candidates in the tech field, pay isn’t the primary motivator. However, increasingly, we're seeing that this is the case. It could be a post-lockdown thing, a generational thing, or it could be that beyond a certain threshold in the UK, more money doesn’t necessarily make you any happier.
So, does purpose really trump pay when it comes to engaging tech talent? Let's explore...
Let’s compare two employment value propositions:
What are tech candidates looking for from employers in 2023?
Clearly purpose matters. So, what can employers offer to entice the very best tech candidates?
A culture that inspires.
No, not table tennis and free beer. Instead, a company culture that can be actively seen and inspires candidates to do their best. A company’s values are more important than ever. Job seekers are more likely to apply for jobs at companies they respect and admire. If employees’ values align with their employers, they will naturally have a higher degree of positive association with their job and are more likely to work harder. They will feel proud of their employer and are likely to vocalise this, which can contribute to greater brand awareness and positive working culture. Equality, diversity and inclusion.
Gen Z and Millennials made up 59% of the global workforce by 2020. They have lived with tech nearly all of their lives and many are moving into this field for work. But, this is a generation that isn’t happy to just go with the flow and many have expectations for their employers that are non-negotiable. For this generation of talent, equality and inclusion are at the forefront of decision-making. In the US for example, 77% of Gen Z said that a company’s level of diversity affects their decision to work there. It is not merely enough anymore to have the largest salaries on offer, the new generation of candidates want to know they are working somewhere that looks beyond profit and empowers their employees to make a difference. Good compensation but money doesn’t buy happiness.
In 2020, researchers analysed data from the Office for National Statistics and Happy Planet Index to find out how much money the average Briton would need to live a happy life. In the UK, £33,864 per individual is the answer (this number has likely increased given our nation's cost of living crisis). This isn’t to say businesses should look at that number and decide that’s the perfect salary to offer. Simply anything beyond that figure will continue to improve the standard of living but there isn’t hard evidence to suggest it improves an individual's level of happiness. In tech, where salaries often exceed this benchmark, a large salary may not be a key driver. Knowing your work is making a difference and is contributing more than just profits has become increasingly more important for candidates across the UK tech market. Purpose, coupled with clear career progression and ongoing training are factors which positively impact attraction, retention and company loyalty/advocacy. Work-life balance and flexible working arrangements.
A 9-5 Monday to Friday is becoming less and less attractive for candidates, the offer of flexible work removes many of the anxieties a highly structured working pattern brings. Covid-19 inspired new ways of working and, for many, a new perspective. Candidates now expect working from home, flexible hours and open and effective management from employers as standard. Pay has taken a backseat to cultural alignment and well-being. Candidates are not actively hoping for care from their employer - they are demanding it.
Talent messaging around purpose is something I love talking about, if you would like to discuss any of the themes of this article contact me at andy.wadsworth@morson.com or connect on LinkedIn by clicking here.
