New study: Attracting Talent 2024 - What workers really want today

Key insights

• Needs are highly individualized; they not only evolve throughout one's lifetime but also vary between genders and across professional domains.
• Compensation, job security, and work-life balance stand out as the most compelling attraction and retention factors.
• However, caution is advised: not all compensation benefits have the same effect! While salary transparency enhances attraction, a fixed salary serves better as a retention tool.
• Recruitment and retention strategies may thus intersect, yet it's beneficial for companies to differentiate and execute targeted measures tailored to specific demographic groups.

Our work culture is changing. Switching employers, even after a year or two, will soon become the norm. Instead, it is seen as a reasonable step for many to advance their careers, gain new insights into a different corporate culture, or find a job that better suits their skills. There are numerous reasons for a job change. Above all, this trend requires employers to be flexible and have a solid talent attraction and retention strategy.

Attracting Talent 2024 - What Workers Really Want Today

The new collaborative study by The Stepstone Group and the Kienbaum Institute @ISM for Leadership & Transformation reveals several key factors that attract and retain top talent. The study applies Maslow's hierarchy of needs to the workplace context to identify the diverse needs of different demographic groups. A total of 8,493 individuals participated in the survey, comprising 4,702 individuals intending to switch employers in 2024, 2,587 employees aiming to remain with their current employer, and 1,204 recruiters tasked with assessing job seekers' needs. The results were weighted using German Mikrozensus data and are representative of the German working population in terms of age and gender.

Download the (German) report for free here.

An English version will be available soon.

Employee attraction vs. retention

Employee attraction and retention are part of an interconnected process that encompasses the entire employee lifecycle. Employee attraction refers to a company's efforts to identify, attract, and hire new qualified employees. Employee retention, on the other hand, refers to the strategies and measures a company takes to retain its employees in the long term and strengthen their loyalty. Employee attraction and retention are therefore two important aspects of HR management, but they relate to different phases in an employee's lifecycle.

A particularly effective attraction and retention strategy is characterized by two aspects: firstly, the identification of overlapping elements. For example, an attractive salary can both attract potential candidates and strengthen the loyalty of existing employees. Secondly, through a personalized approach: Not all employees have the same needs and motivations. Our study helps companies to identify the right target group-specific measures.

Many overlaps between retention and acquisition factors

The study revealed several overlaps in the priorities of job seekers and satisfied employees. Remuneration, job security, and work-life balance emerged as top priorities for both groups. Remuneration stands out as the absolute forerunner, as it is repeatedly highlighted in our surveys. However, a closer examination of the data underscores the value of differentiation in this area as, for example, not all remuneration packages are perceived as the same. While salary transparency and fairness of remuneration are appealing to those considering a job change, a fixed salary rather tends to foster loyalty. Nevertheless, the primary reason cited by most individuals for remaining with their current employer is the high level of job security provided by a permanent employment contract. This outcome is unsurprising amid the current economic uncertainty. Nonetheless, as the labor shortage grows and employees gain more bargaining power, this factor is likely to diminish in significance in the future.

Work-life balance, along with a thriving team and corporate culture, are the next most critical factors for both job-seeking employees and those aiming to remain with their current employer. This finding underscores the importance of employer branding, which must resonate both externally and internally.

Professional priorities change throughout a lifetime

The results of the study reveal the following: Professional needs evolve throughout an individual’s life and employers who recognize and cater to the needs in different career stages can gain a significant advantage. Up until their late 30s, individuals predominantly prioritize achieving work-life balance through a self-determined way of working, flexible working hours, and a flexible work location. Subsequently, the emphasis on self-realization gradually diminishes. Similarly, aspirations for career advancement peak during one's twenties, but diminish considerably with age.

While a thriving team culture is deemed equally important across all age demographics, the significance of corporate culture amplifies with age. Younger individuals prioritize open communication and supportive collaboration, whereas older individuals value flattened hierarchies, fairness, and equality, particularly when looking for a new job. Furthermore, the importance of job security, notably in the form of permanent employment contracts, becomes more pronounced over time. Overall, the social element of work becomes more important than the desire for self-realization or even money.

Professional groups differ in their needs

Every profession necessitates specific skills, knowledge, and working methods. Consequently, an individual's needs can be significantly shaped by the demands of their job. Moreover, individuals select professions based on personal interests, skills, and career aspirations. Thus, it is unsurprising that professional requirements vary across occupational fields. For instance, professionals in engineering and technical roles prioritize job security, compensation, and work-life balance. Conversely, candidates and employees in management and board positions place the highest value on corporate culture, career development, and team dynamics.

Conclusion

The proportion of recruiters who are aware of the increasing competition for skilled workers has been steadily rising for several years. Consequently, attracting and retaining talent is becoming progressively crucial to maintaining competitiveness as a company. The new study, "Attracting Talent 2024 – Was Arbeitskräfte heute wirklich wollen," indicates a shift toward personalized agreements between employers and employees. To adapt to this trend, employers must understand their target demographics and recognize the diverse life and career stages of their workforce.

On average, younger individuals tend to prioritize career advancement and compensation, while those in middle age gravitate towards achieving a balance between work and personal life alongside compensation considerations. Older employees, on the other hand, place greater importance on company culture, team dynamics, and job security.