5 ways to compete for talent when you’re on a budget

Sixteen years ago, I received a phone call that was both unexpected and surprising. On the other end of the line was Lisa (a pseudonym) who had previously been the leading applicant for an open job position at our agency. Lisa had learned about our agency from some of her peers who worked with us and who had encouraged her to apply for a position in the firm. But, halfway through the interview process, Lisa informed us that even though she really wanted to work with us, she had received an offer from a competitor that she just couldn’t refuse.

At the time, we were a start-up agency that was bootstrapping its way forward. We simply couldn’t match the salary that the competitor was offering Lisa. Believe me, if we could have, we would have. Lisa’s portfolio of work, CV, and recommendations were more than impressive. Although we were disappointed, we thanked Lisa for participating in the interview process and genuinely wished her all the best in her career. This is a scenario that many start-ups find themselves in—wanting to attract their industries’ “best and brightest” but being unable to compete with the big guys in the area of compensation.

But, back to the phone call. In a faint whisper, Lisa asked if the position at our agency was still available. I replied yes, it was, and asked why she was whispering. As it turns out, Lisa was whispering because she was in her new workplace and didn’t want her colleagues to overhear the call. I reminded her that we wouldn’t be able to match her current salary, to which she replied: “I’d rather be working with you guys at a lower salary than be working here in a toxic culture.” (Lisa’s peers who worked at our agency had told her about our fun and often quirky culture.)

So, we offered the position to Lisa, who immediately quit her job and came to work at our agency, where she excelled in her role. Lisa’s story should be good news for any company seeking to attract top talent, but especially those that can’t afford to compete on the basis of salary.

Here are five ways to compete for talent without having a huge budget for salaries.

1. Build a highly engaged company culture

A study conducted by Glassdoor, one of the world’s largest recruiting sites, found that 77% of employees consider a company’s culture before applying for a job, and that 56% of applicants rank company culture as being more important than salary when it comes to job satisfaction. If you want to attract top talent, prioritize building a highly engaged company culture where employees are excited about the work they do and are committed to helping their organizations succeed. Let your culture act as a magnet to attract top talent—even if you aren’t exactly hitting the top of your industry’s salary scales.

2. Prioritize work/life balance

Of respondents in a FlexJobs Career Pulse Survey, 64% stated they would choose better work/life balance over better pay. And no wonder! Workplace stress has been linked to physical, emotional, and mental health challenges, including high blood pressure, cardiovascular disease, anxiety, depression, and substance abuse. If your organization can’t compete for top talent on the basis of salary, try competing on work/life balance by offering generous time off opportunities like “Half-Day Fridays,” flexible working hours, and work-from-home opportunities.

3. Provide opportunities for professional development

Ambitious employees often forego higher salaries in favor of professional development that could fast-track their careers in the long run. That’s why a great way to attract top talent is to provide candidates with opportunities for professional development that they would not otherwise find at your competitors. But, what professional development programs would attract the type of employees you would want to apply at your firm? Research conducted by PayScale found that nearly a third of all respondents reported that they would be most interested in management/leadership training. Other coveted training opportunities included professional certifications and technical skills training.

4. Offer non-monetary benefits

Cold hard cash isn’t the only thing that can motivate an individual to want to work at an organization. In a study conducted by Randstad US, 61% of respondents indicated that they would be willing to accept a lower salary if an organization offered a great benefits package as part of their compensation. And, in a survey by the American Institute of Certified Public Accountants, 80% of respondents reported that they would choose a job with benefits even if an identical job offered 30% more salary but no benefits. If you can’t go toe-to-toe with your competitors based on salaries, consider offering benefits like workplace wellness programs, gym membership, health insurance, and access to mental health resources.

5. ‘We grow, you grow’ programs

When Lisa left a higher-paying job to come to our agency, we promised her that as the company grew and became more profitable, her salary would likewise grow—a promise that we were able to keep. Sometimes, all it takes to win over a candidate is to demonstrate that you value their contributions and that as the company grows, they will reap the benefits.

If your company simply can’t offer top-tier salaries, consider using these strategies. You may be pleasantly surprised to find that you can compete effectively for top talent without having a huge budget for salaries.