Attracting top talent? Why financial rewards matter less than you think
New research by Sunny Lee (University College London) and Bart Dietz (Erasmus University & Advisory Partner at Longtail Search & Interim) shows that traditional assumptions about what attracts talent do not always hold true.
Attracting Top Talent Requires a Different Reward Strategy
For years, research has examined differences in reward preferences across various groups in the labor market. We know, for example, that women tend to place more value on intrinsic factors such as purpose and fulfillment, while younger professionals often prioritize extrinsic rewards like salary or bonuses. We also see that employees in lower-level roles respond more strongly to financial security, whereas senior professionals take a broader set of considerations into account beyond pay alone.
Interesting insights—but only partially relevant when it comes to attracting top talent.
New research by Sunny Lee (University College London) and Bart Dietz (Erasmus University & Advisory Partner at Longtail Search & Interim) comparing top performers with average candidates shows that many traditional assumptions about what attracts talent do not always hold true.
The Pitfall of Using Salary as a Selling Point
Hiring managers and recruiters often place extra emphasis on the financial package when speaking with strong candidates. It seems logical: top talent must want a top offer.
But the data tells a different story:
Highlighting salary and financial incentives does not increase top talent’s interest in the role.
That same emphasis actually attracts more lower-quality candidates or those who are a weaker match.
In other words, by focusing heavily on pay, you primarily increase your appeal to people who are driven by money, not to the professionals who truly move the needle.
What Top Talent Does Respond To
Top talent perceives value differently from average candidates. High performers are drawn primarily to growth, autonomy, and long-term development opportunities.
Specifically, they look for:
opportunities for professional development
room to take ownership and responsibility
visibility into future roles and potential impact
learning and growth paths that align with their ambition and potential
an environment that encourages development rather than focusing solely on performance
These growth-oriented rewards have a significant positive effect on top talent, while having little impact on lower-quality candidates.
Why Growth Matters Most to Top Performers
Top talent typically has more options in the labor market, less financial pressure, and a stronger need for autonomy and professional development. Their key question is rarely:
“What will I earn?”
Much more often, it is:
“Where can I grow, make an impact, and advance?”
High performers generally take competitive pay for granted. Growth and development satisfy their deeper needs and are therefore decisive in their choice of employer.
What does this mean for organizations aiming to attract top talent?
Source: Lee, S. & Dietz, B. (2025). Beyond Pay: The Effects of Interviewers' Emphasis on Pay and Career Growth on Attracting Highly Qualified Applicants.