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
  • Innovation
  • 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.

RELATED TERMS
  1. Lead Magnet

    A lead magnet is a marketing term for a free item or service ...
  2. Magnetic Stripe Card

    Used for retail transactions and to provide access to secure ...
  3. Magnetic Ink Character Recognition ...

    The magnetic ink character recognition (MICR) line on a check ...
  4. Terms of Employment

    Terms of employment are conditions that an employer and employee ...
  5. Chip-And-PIN Card

    A chip-and-PIN card is a credit or debit card that contains data ...
  6. Convenience of Employer Test

    The convenience of employer test is used to determine whether ...
Related Articles
  1. Trading

    Amazon Wins Online Dollars and Prime Members

    Amazon reports record holiday sales and new Prime Members, expanding its online reach.
  2. Personal Finance

    Financial Wellness Programs: How Employees Benefit

    More and more employees, regardless of age, career or income, are turning to their employers for help with their personal financial plans.
  3. Investing

    Why Employees Need an Investment Policy Statement

    Here's why having an investment policy statement is helpful if you have equity compensation.
  4. Managing Wealth

    3 Ways To Attract Top Talent On A Budget

    With small businesses facing difficult financial times in the U.S., this article assesses innovative ways in which independent firms can attract top industry talent.
  5. Financial Advisor

    How to Attract and Retain Millennial Advisors for Your Practice

    Practices looking to attract and retain Millennial advisors should consider these tips.
  6. Personal Finance

    7 Things You Should Say in an Interview

    Slip these simple phrases into your next interview and you'll have a great chance at landing the job.
  7. Small Business

    Employees Vs. Investors

    Who is more important to the CEO and a company's bottom line? Is it employees or company shareholders?
  8. Taxes

    Tax Credit For Plan Expenses Incurred By Small Businesses

    Determine whether your business is eligible to claim a tax credit for establishing a retirement plan.
  9. Investing

    Apple Levels to Watch After Earnings (AAPL)

    Apple needs to trade above 115 or below 90 to escape magnetism created by technical conditions in place since a 2015 breakdown.
Trading Center