Employee hiring and retention are t

Employee hiring and retention are two utmost important tasks of Human Resource department of modern enterprises. Organizations spend a great deal of money studying the reasons of attrition. And many of them conclude that compensation is the biggest reason why an employee accepts a job offer. I too think that salary is the most important motivating factor for one to accept an offer.

Firstly, one needs to understand the motive why anyone looks for employment. It is obvious that one does a job to earn money, to support his family and so that he can lead a good life. With time, everyone's need changes and one top of this, inflection makes things increasingly unaffordable. An employee starts looking outside when he finds himself stretching to meet his family need. Second reason is that, when an employee feels he is not paid enough he would start finding new job. Infosys Technologies's HR department's exit interview, when they try to find reason why an employee has left job, data reveals that 80% of people leaving job has salary as the first reason. This shows that compensation plays biggest role in employee's decision of switching job or taking new offer.

However, there are many other important reasons why one selects a job such as work life balance, opportunity to rise in organization hierarchy, work culture etc. Study by Bangalore human resource organization revealed that 50% employees provide non-salary as one of the reasons for taking a new offer. From my personal experience, I have seen many of my colleagues taking new offer in search of other better opportunity or to switch career.

Therefore, we can safely conclude that salary is not the only consideration while choosing new job but it is the topmost reason why one takes new job offer.