A good compensation package is still key to attracting the talent any organization needs. Unlike years ago, the working world is much more transparent about what is being offered, salary ranges, and other parts of a compensation offering, like equity or stock options. But money is not the only driver for a lot of top talent. Non-monetary benefits also play a big part in whether or not a compensation package is competitive.
A lot of changes happened both during and post-COVID, and the business world is still making changes. Some companies decided to compensate employees based on the cost of living in a particular area while having the same job description. Other companies decided to compensate equally based on only the job description and performance. According to some studies, there were employees who were willing to take a lower salary to have more flexibility in their workday and in where they could work.
There is also the ongoing discussion about what creates the best productivity: everyone in the office, a hybrid approach, remote workers, or a combination of approaches. There has been a significant rise in remote work in many industries, but higher numbers in technical services like remote IT support, finance, insurance, and certain management roles.
Trying to find the right mix of compensation that motivates employees and attracts the talent a company needs is more challenging than ever. There is also the challenge of an aging workforce and aging population. An attractive compensation package for a 25 or 30-year-old may be very different from one offered to someone in their 50s or even 60s.
Younger talent, those who are Gen Z or the youngest Millennials, tend to be looking for higher salaries. Nowadays, it goes beyond having a lot of education debt. Cost of living in many areas, like rental rates for apartments, is often higher, by percentage, than 30 years ago. Younger people are also much more willing to share salary and compensation information, including with colleagues. Having clear salary ranges based on detailed job descriptions can show that the company is committed ot equal pay for equal work.
In addition to some of the changes around pay levels and pay transparency, younger workers value benefits that expand on more traditional benefits packages, like student loan assistance, mental health services that go beyond a traditional EAP, financial literacy programs, and not just the traditional 401(k) information on saving for retirement.
Another area that many younger candidates want to see is specific programs and initiatives that will help them with career development and growth. They look for tuition reimbursement to further their education, opportunities either within a team or the company to develop skills on an ongoing basis.
Younger employees also value the ability to personalize their benefits package. If your company offers a more a la carte approach, that can be very appealing to younger workers. Someone in their 20s may not care about benefits geared towards being a parent, fertility treatments, or IVF. However, that may be a major draw for a candidate in their 30s. It can be beneficial to have financial education that caters to a wide variety of needs, including those who are more high-risk investors, those who are saving for a home, those paying down debt, and information about the financial needs should an employee take a care break for children and/or aging adults in their lives.
One of the best ways to make sure you are offering the compensation package that wlll attract the right talent is to get feedback from your employees on a regular basis. Industry benchmarking is also important, but the goal is to stand out in your industry.
The workforce is also aging. The median age of someone in the U.S. workforce is now 42 years old. The fastest growing age groups in the U.S. workforce are workers over 75 and ages 65-74. More mature talent, particularly if you are hiring someone in their 50s or 60s, may be less interested in career development. They may be looking for more opportunities to mentor, want to know the company values their experience, and will not be subject to ageism.
Now is a good time to review total compensation packages, review your company’s demographics, and see if there are changes that can be made in 2026. Those changes can help attract the talent your organization needs.