Is offering higher wages enough to keep top talent?

Pay and remuneration for a particular job, such as an engineer, an accountant or an HR manager, will vary according to what part of the country you live. Salaries for these roles in Sydney, for example, are likely to be different compared to Rockhampton. 

Elijah Bradshaw, Vice President HR, for software company Beeline, based in Jacksonville, Florida, says remote working has put a spotlight on these geographic differences when it comes to pay. With people able to work from anywhere, why should someone in Florida employed by a company in the higher income state of California, not receive California wages? Likewise, Rockhampton and Sydney?

It is forcing us to think about compensation in the short term and we are playing catch-up in some respects, admits Bradshaw. It’s a huge opportunity for employees who have the skills as they are pursued by companies in locations where they can pay higher salaries. Companies are willing to recruit remotely and have these highly sought-after employees work from anywhere.”

Acceptance of flexibility and remote working not only benefits individuals, it benefits companies, says Bradshaw because it has created a much broader pool of talent.

The battle for top leadership talent has led some companies to offer huge increases or sign-on bonuses. Bradshaw thinks it can have a short-term positive impact by filling gaps - but it may conceal underlying weaknesses in a management team that lacks strength.

“It can create problems longer term as the new hire arrives and discovers the environment isn’t as good as they would like.”

Plenty of research shows that while compensation influences initial decision making, it doesn’t influence job satisfaction. By throwing money at the problem [of vacancies], they are not necessarily solving it as measuring attrition rates might reveal.

At Beeline our culture has always been one of our strongest elements. We all take responsibility for that in how we make decisions and how we don’t make decisions. And since 2019, we have prioritised getting feedback and measuring the engagement of our workforce so that we continue to drive the sense of connection and ownership,” says Bradshaw.

Competitive pay is important but pay without engagement could see your top talent walking.