What Job Attributes are Most Important for Job Seekers? Hint: Compensation and Benefits—What to do With This Knowledge and How to Signal to Job Seekers

Abstract

The job market in many sectors remains tricky. Major events like COVID, inflation, and a large demographic shift of who is participating in the workforce has made it difficult for organizations to attract the talent needed to be successful. The job attributes and programs that organizations are using to attract employees do not seem to be working as well today as in the past. Prior academic research noted that job and cultural fit were the most important characteristics for those seeking jobs; however, little new research has been published on this topic since 2020 and COVID. Through conjoint analysis, this quantitative research study of 300 prospective job applicants examines how job applicants consider and prioritize observable job and recruitment attributes in their evaluation of job opportunities. In this study, we found that compensation and workplace flexibility are the most important attributes that organizations can signal as they work to attract talent, which is a major shift from prior studies. Based on these findings, we offer several practical ideas for how compensation and benefits leaders can strategically use this data to align programs to what those in the job market seek.

Keywords

compensation total rewards flexible workplace conjoint analysis job attributes signaling theory

Get full access to this article

View all access options for this article.

References

Aaker

D. A.

(2009). Managing brand equity: Capitalizing on the value of a brand name. Simon & Schuster.

Acheampong

N. A. A.

(2021). Reward preferences of the youngest generation: Attracting, recruiting, and retaining generation Z into public sector organizations. Compensation & Benefits Review, 53(2), 75–97. https://doi.org/10.1177/0886368720954803

Amato

(2022). Companies say they will pay more to recruit and retain staff. Journal of Accountancy. Retrieved September 9, 2022. https://www.journalofaccountancy.com/news/2022/mar/business-industry-economic-outlook-survey-companies-pay-more-recruit-retain-staff.html

Aon . (2024). Pay transparency consulting. https://www.aon.com/en/capabilities/talent-and-rewards/pay-transparency-consulting?utm_source=google&utm_medium=paid-sem&utm_campaign=b_0_hr__all_tal_na-pt_na_us&utm_content=d__cu&gad_source=1&gclid=CjwKCAjwzIK1BhAuEiwAHQmU3lH5IYh7kTMKHuPRvtex5qn2Ub8JDhG1MK4sx4bfeAaDQq00tXf7gRoChDoQAvD_BwE (Accessed 24 July 2024).

Bangerter

Roulin

König

C. J.

(2012). Personnel selection as a signaling game. Journal of Applied Psychology, 97(4), 719–738. https://doi.org/10.1037/a0026078

Battey

(2000). The keys to recruiting success. InfoWorld, 22, 73–76.

Baum

Kabst

(2013). How to attract applicants in the Atlantic versus the Asia-Pacific region? A cross-national analysis on China, India, Germany, and Hungary. Journal of World Business, 48(2), 175–185. https://doi.org/10.1016/j.jwb.2012.07.002

Bloom

(2024). Does working from home damage productivity? Just look at the data. The Hill.U531&cvid=7e90d8d74e7a44daae297c6fba82 https://www.msn.com/en-us/money/careers/does-working-from-home-damage-productivity-just-look-at-the-data/ar-AA1hrWv9?ocid=msedgdhp&pc=7680&ei=100 (Accessed 17 June 2024).

Bloom

Liang

Roberts

Ying

Z. J.

(2015). Does working from home work? Evidence from a Chinese experiment. Quarterly Journal of Economics, 130(1), 165–218. https://doi.org/10.1093/qje/qju032

10.

Blumenfeld

W. S.

Kent

W. E.

Shock

P. J.

Jourdan

L. F.

(1987). Job attribute preferences of a group of potential hospitality industry managers (what makes a job good or bad). Hospitality Education and Research Journal, 11(1), 79–91.

11.

Boswell

W. R.

Roehling

M. V.

LePine

M. A.

Moynihan

L. M.

(2003). Individual job-choice decisions and the impact of job attributes and recruitment practices: A longitudinal field study. Human Resource Management, 42(1), 23–37. https://doi.org/10.1002/hrm.10062

12.

Boyle

(2023). Letting people work from home is good for revenue growth. Bloomberg. https://www.bloomberg.com/news/articles/2023-11-14/work-from-home-jobs-are-good-for-companies-revenue-growth-study-shows?embedded-checkout=true (Accessed 16 July 2024).

13.

Breaugh

J. A.

Starke

(2000). Research on employee recruitment: So many studies, so many remaining questions. Journal of Management, 26(3), 405–434. https://doi.org/10.1016/s0149-2063(00)00045-3

14.

Cable

D. M.

Judge

T. A.

(1996). Person–organization fit, job choice decisions, and organizational entry. Organizational Behavior and Human Decision Processes, 67(3), 294–311. https://doi.org/10.1006/obhd.1996.0081

15.

Cable

D. M.

Turban

D. B.

(2001). Establishing the dimensions, sources and value of job seekers’ employer knowledge during recruitment. Research in Personnel and Human Resources Management (Research in Personnel and Human Resources Management, Vol. 20), Emerald Group Publishing Limited, Leeds, (pp. 115–163). https://doi.org/10.1016/S0742-7301(01)20002-4

16.

Cable

D. M.

Turban

D. B.

(2003). The value of organizational reputation in the recruitment context: A brand‐equity perspective. Journal of Applied Social Psychology, 33(11), 2244–2266. https://doi.org/10.1111/j.1559-1816.2003.tb01883.x

17.

Carless

S. A.

(2005). Person–job fit versus person–organization fit as predictors of organizational attraction and job acceptance intentions: A longitudinal study. Journal of Occupational and Organizational Psychology, 78(3), 411–429. https://doi.org/10.1348/096317905x25995

18.

Carless

S. A.

Imber

(2007). The influence of perceived interviewer and job and organizational characteristics on applicant attraction and job choice intentions: The role of applicant anxiety. International Journal of Selection and Assessment, 15(4), 359–371. https://doi.org/10.1111/j.1468-2389.2007.00395.x

19.

Chapman

D. S.

Uggerslev

K. L.

Carroll

S. A.

Piasentin

K. A.

Jones

D. A.

(2005). Applicant attraction to organizations and job choice: A meta-analytic review of the correlates of recruiting outcomes. Journal of Applied Psychology, 90(5), 928–944. https://doi.org/10.1037/0021-9010.90.5.928

20.

Cheng

Jiang

Liu

(2022). The influence of perceived external prestige on emotional labor of frontline employees: The mediating roles of organizational identification and impression management motive. International Journal of Environmental Research and Public Health, 19(17), 10778. https://doi.org/10.3390/ijerph191710778

21.

Chipunza

Kabungaidze

(2012). Attributes utilised by knowledge workers in identifying employers of choice: Focus on accountants and information technology (IT) specialists in South Africa. Journal of Social Sciences, 31(2), 137–150. https://doi.org/10.1080/09718923.2012.11893022

22.

Collins

C. J.

(2002). The effects of company recruitment practices on job seekers’ perceived employment brand equity and intentions to pursue job opportunities. Academy of Management Proceedings, 2002(1), A1–A6. https://doi.org/10.5465/apbpp.2002.7516672

23.

Crist

(2023). Time-to-hire rates are increasing significantly for almost all roles. HR Drive. https://www.hrdive.com/news/time-to-hire-rates-increasing-significantly-for-almost-all-roles/652449/#:∼:text=Time%2Dto%2Dhire_rates_have,global_talent_solutions_firm_AMS (Accessed 29 May 2024).

24.

Dal Bó

Finan

Rossi

M. A.

(2013). Strengthening state capabilities: The role of financial incentives in the call to public service. Quarterly Journal of Economics, 128(3), 1169–1218. https://doi.org/10.1093/qje/qjt008

25.

Davis

J. R. K. R.

Giles

W. F.

Feild

J. R. H. S.

(1985). What college graduates want in a compensation package. Compensation Review, 17(1), 42–53. https://doi.org/10.1177/088636878501700105

26.

De Smet

Dowling

Mugayar-Baldocchi

Schaninger

(2021). ‘Great attrition’ or ‘great attraction’? The choice is yours. McKinsey Quarterly, 4. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/great-attrition-or-great-attraction-the-choice-is-yoursPublished9/8/2021.

27.

Diamantidis

A. D.

Chatzoglou

(2019). Factors affecting employee performance: An empirical approach. International Journal of Productivity and Performance Management, 68(1), 171–193. https://doi.org/10.1108/ijppm-01-2018-0012

28.

DiStasio

(2023). Implementation pay transparency: Best practices, how to prepare and what comes after. ADP. https://www.adp.com/spark/articles/2023/09/implementing-pay-transparency-best-practices-how-to-prepare-and-what-comes-after.aspx (Accessed 24 July 2024).

29.

Edwards

J. R.

(1991). Person-job fit: A conceptual integration, literature review, and methodological critique. John Wiley & Sons.

30.

Friedell

Puskala

Smith

Villa

(2011). Hiring, promotion, and progress: Millennials’ expectations in the workplace. St. Olaf College Working Paper.

31.

Gartner . (2024). Future of work reinvented. Gartneryrket. https://www.gartner.com/en/insights/future-of-work (Accessed 14 July 2024).

32.

Gratton

(2021). How to do hybrid right. Harvard Business Review, 99(3), 65–74.

33.

Green

P. E.

Krieger

A. M.

Wind

(2001). Thirty years of conjoint analysis: Reflections and prospects. Interfaces, 31(3_supplement), S56–S73. https://doi.org/10.1287/inte.31.3s.56.9676

34.

Hair

J. F.

Anderson

R. E.

Tatham

B. L.

Black

W. C.

(1998). Multivariate data analysis (5th ed.). Prentice-Hall.

35.

Hannon

J. M.

Milkovich

G. T.

(1996). The effect of human resource reputation signals on share prices: An event study. Human Resource Management, 35(3), 405–424. https://doi.org/10.1002/(sici)1099-050x(199623)35:3<405::aid-hrm7>3.0.co;2-0

36.

Harris

M. M.

Fink

L. S.

(1987). A field study of applicant reactions to employment opportunities: Does the recruiter make a difference? Personnel Psychology, 40(4), 765–784. https://doi.org/10.1111/j.1744-6570.1987.tb00623.x

37.

Highhouse

Lievens

Sinar

E. F.

(2003). Measuring attraction to organizations. Educational and Psychological Measurement, 63(6), 986–1001. https://doi.org/10.1177/0013164403258403

38.

Hill

(2001). How often should you analyze market pay data? Cascade employers association. https://www.cascadeemployers.com/blog/2021/02/22/weekly-blog/how-often-should-you-analyze-market-pay-data/#:∼:text=Typically%2C_our_recommendation_on_best,market_demand_for_certain_jobs (Accessed 24 July 2024).

39.

J. L.

Lee

L. C.

(2009). How changes in compensation plans affect employee performance, recruitment, and retention: An empirical study of a car dealership. Contemporary Accounting Research, 26(1), 167–199. https://doi.org/10.1506/car.26.1.6

40.

Huber

(1997). “What We Have Learned from 20 Years of Conjoint Research: When to Use Self-Explicated, Graded Pairs, Full Profiles, or Choice Experiments,” in Sawtooth Software Conference Proceedings. Sequim, WA: Sawtooth Software, [available at https://www.sawtoothsoftware.com/download/techpap/1997Proceedings.pdf#page=257]

41.

Judge

T. A.

(1994). Person–organization fit and the theory of work adjustment: Implications for satisfaction, tenure, and career success. Journal of Vocational Behavior, 44(1), 32–54.

42.

Judge

T. A.

Bretz

R. D.

(1992). Effects of work values on job choice decisions. Journal of Applied Psychology, 77(3), 261–271. https://doi.org/10.1037//0021-9010.77.3.261

43.

Judge

T. A.

Cable

D. M.

(1997). Applicant personality, organizational culture, and organization attraction. Personnel Psychology, 50(2), 359–394. https://doi.org/10.1111/j.1744-6570.1997.tb00912.x

44.

Keller

Meaney

(2017). Attracting and retaining the right talent (24). McKinsey & Company.

45.

Kim

York

K. M.

Lim

J. S.

(2011). The role of brands in recruitment: A mixed-brand strategy approach. Marketing Letters, 22(2), 165–179. https://doi.org/10.1007/s11002-010-9119-9

46.

Lim

H. E.

Jan-Jan

(2006). Job selection criteria and job sector preference of economics student: An ordered logit model analysis. International Journal of Business and Society, 7(1), 53.

47.

Allen

D. G.

(2009). Recruiting across cultures: A value-based model of recruitment. Human Resource Management Review, 19(4), 334346. https://doi.org/10.1016/j.hrmr.2009.03.001

48.

Madan

A. O.

Madan

(2019). Attracting millennial talent: A signal theory perspective. Evidence-based Healthcare: A global forum for empirical scholarship, 7(1), 8–23. https://doi.org/10.1108/ebhrm-01-2018-0009

49.

Madera

J. M.

(2012). Using social networking websites as a selection tool: The role of selection process fairness and job pursuit intentions. International Journal of Hospitality Management, 31(4), 1276–1282. https://doi.org/10.1016/j.ijhm.2012.03.008

50.

Milkovich

G. T.

Delaney

M. J.

(1975). A note on cafeteria pay plans. Industrial Relations: A Journal of Economy and Society, 14(1), 122–1116. https://doi.org/10.1111/j.1468-232x.1975.tb00077.x

51.

Morrell

D. L.

Abston

K. A.

(2018). Millennial motivation issues related to compensation and benefits: Suggestions for improved retention. Compensation & Benefits Review, 50(2), 107–113. https://doi.org/10.1177/0886368718822053

52.

Mortenson

(2023). Tension is rising around remote work. Harvard Business Review. https://hbr.org/2023/07/tension-is-rising-around-remote-work

53.

Murrmann

S. K.

Vest

J. W.

(1990). The effect of individual attributes on student preferences for industry specific employment. Hospitality Research Journal, 14(2), 83–94. https://doi.org/10.1177/109634809001400210

54.

Peiró

J. M.

García‐Montalvo

Gracia

(2002). How do young people cope with job flexibility? Demographic and psychological antecedents of the resistance to accept a job with non‐preferred flexibility features. Applied Psychology, 51(1), 43–66. https://doi.org/10.1111/1464-0597.0078z

55.

Perna

M. C.

(2022). You need more than just pay raises to win the war for talent. Forbes. https://www.forbes.com/sites/markcperna/2022/06/08/you-need-more-than-just-pay-raises-to-win-the-war-for-talent/?sh=632820f54961

56.

Ployhart

R. E.

(2006). Staffing in the 21st century: New challenges and strategic opportunities. Journal of Management, 32(6), 868–897. https://doi.org/10.1177/0149206306293625

57.

Rynes

S. L.

Gerhart

Minette

K. A.

(2004). The importance of pay in employee motivation: Discrepancies between what people say and what they do. Human Resource Management, 43(4), 381–394. https://doi.org/10.1002/hrm.20031

58.

Rynes

S. L.

Heneman

H. G.

III Schwab

D. P.

(1980). Individual reactions to organizational recruiting: A review. Personnel Psychology, 33(3), 529–542. https://doi.org/10.1111/j.1744-6570.1980.tb00481.x

59.

Rynes

S. L.

Miller

H. E.

(1983). Recruiter and job influences on candidates for employment. Journal of Applied Psychology, 68(1), 147–154. https://doi.org/10.1037//0021-9010.68.1.147

60.

Schumann

(2024). Pay transparency and pay communication. Compensation & Benefits Review, 56(1), 7–15. https://doi.org/10.1177/08863687231200082

61.

Solnet

Kralj

Kandampully

(2012). Generation Y employees: An examination of work attitude differences. Journal of Applied Management and Entrepreneurship, 17(3), 36.

62.

Sull

Bersin

(2020). Five ways leaders can support remote work. MIT Sloan Management Review.

63.

Sull

Zweig

(2022). Toxic culture is driving the great resignation. https://www.acmpnorcalchapter.org/changemanagement-articles

64.

Swider

B. W.

Zimmerman

R. D.

Barrick

M. R.

(2015). Searching for the right fit: Development of applicant person-organization fit perceptions during the recruitment process. Journal of Applied Psychology, 100(3), 880–893. https://doi.org/10.1037/a0038357

65.

Taylor

M. S.

Collins

C. J.

(2000). Organizational recruitment: Enhancing the intersection of theory and practice. In Cooper

C. L.

Locke

E. A.

(Eds.), Industrial and organizational psychology: Linking theory and practice (pp. 304–334). Basil Blackwell.

66.

Their

(2023). The skill gap is so big that nearly half of workers need to Be restrained this decade. Society of Human Resource Management. https://www.shrm.org/executive-network/insights/skills-gap-big-nearly-half-workers-need-to-retrained-decade (Accessed 29 May 2024).

67.

Turban

D. B.

Greening

D. W.

(1997). Corporate Social Performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40(3), 658–672. https://doi.org/10.2307/257057

68.

U.S. Chamber of Commerce . (2024). America works data center. https://www.uschamber.com/workforce/america-works-data-center (Accessed 29 Mary 2024).

69.

Verquer

M. L.

Beehr

T. A.

Wagner

S. H.

(2003). A meta-analysis of relations between person–organization fit and work attitudes. Journal of Vocational Behavior, 63(3), 473–489. https://doi.org/10.1016/s0001-8791(02)00036-2

70.

Vyas

(2022). “New normal” at work in a post-COVID world: Work–life balance and labor markets. Policy and Society, 41(1), 155–167. https://doi.org/10.1093/polsoc/puab011

71.

Weddle

Hancock

Rahilly

(2024). Workers wanted: How to fill the skilled-trade shortage. McKinsey & Company. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/workers-wanted-how-to-fill-the-skilled-trade-shortage#/

72.

World at Work . (2024). 2023-2024 salary budget survey. https://worldatwork.org/resources/research/salary-budget-survey (Accessed 24 July 2024).