When it comes to compensation and culture, I’ve always had two trusty one-liners:
- Money isn’t everything, but it is something.
- Compensation won’t buy culture.
But over the years, I’ve realized that while compensation won’t buy culture, there’s more to the story. It deserves a little update:
Compensation won’t buy culture, but it can absolutely help it grow and flourish.
Here’s the thing: companies can’t — and shouldn’t — use “culture” as an excuse to sidestep weak compensation strategies or a poorly designed compensation philosophy. That’s not a hot take; it’s just reality.
Now, don’t get me wrong! Culture is incredible! A strong, supportive, and engaging culture should absolutely be a priority for every organization. In fact, a truly great company culture can smooth over some hiccups in the pay department. But let’s not kid ourselves. Culture alone can’t carry the weight forever. When financial times get rough and those long-awaited raises don’t quite measure up, your culture might be the reason employees decide to stick it out… or start dusting off their resumes.
Attracting and retaining employees who live and breathe the mission you’re trying to foster requires fair and equitable pay. It’s that simple. You can’t assume your mission or “good vibes” (remote or otherwise) will do all the heavy lifting.
I’ve seen both sides of this equation firsthand, and this is what I’ve learned:
I once had the immense pleasure of working for a company that had it all: an engaging, positive culture and a solid pay strategy. It was magic.
On the flip side, I’ve also worked for a company that paid just as well, but had a culture about as welcoming as a DMV on a Monday morning. Guess what? I stayed longer than I should have because the money was good, and the raises kept coming.
In the end, compensation and culture aren’t interchangeable. They’re complementary. Compensation won’t buy culture, but culture also has a fatal flaw: it won’t pay the bills.