What is a Magnet Employer
A magnet employer is a popular business or individual to whom job candidates naturally gravitate. Magnet employers often have brand name recognition behind them and they typically offer higher pay or better benefits than their competitors, thus making them a "magnet" for job seekers looking for superior compensation, networking opportunities, career advancement, name recognition or prestige. As such, being a magnet employer gives companies a significant competitive advantage in attracting and retaining top talent.
BREAKING DOWN Magnet Employer
Magnet employers carry with them a reputation for success, innovation, leadership acumen, quality of life or other factors. Such characteristics can be effective tools in attracting top worker talent. Being a magnet employer company generally has a strong correlation to overall company success, profitability and share price. Working for a magnet employer looks good on an individual's résumé and can be beneficial to their career advancement. Similarly, an individual who is a magnet employer may help a company attract and retain top talent.
Magnet Employer: Companies
A company that is known as a magnet employer may be known as or even rated as a top place to work. How a company becomes a magnet employer can be linked to leadership quality or vision, the type and quality of work performed or products and services created, or the quality of life and employee benefits a company offers. One study found that 87% of businesses consider building a strong company culture as one of their biggest challenges. Companies such as Glassdoor publish worker comments that feature company ratings based on a variety of factors, including the following:
- Leadership quality
- Management structure
- Vision and a sense of purpose
- Communication and transparency
- Opportunities for advancement, career development
- Performance measurement and feedback
- Compensation or pay structure
- Paid leave policies and perks
- Culture and diversity
- Outlook (whether the company growing)
- Office environment
Employers that workers gravitate to also tend to be in popular or cutting-edge industries such as technology. Companies at the top of LinkedIn's list of places where people most want to work include Alphabet (Google), Amazon, Facebook, Salesforce, Tesla and Apple.
Magnet Employer: Individuals
By either luck or design, some companies find themselves with star managers — those who inspire their co-workers and subordinates — that people will go out of their way to work for. They may be known for helping their staff achieve lofty goals, meet and exceed sales targets, earn big bonuses or know when to give people autonomy so that they may succeed on their own.