Culture vs Compensation: What really matters most when you change jobs?
Culture vs Compensation: What really matters most when you change jobs?
It’s a decision almost everyone wrestles with at least once: do you chase the bigger pay cheque, or choose the company with a great culture?
For this month’s debate, two of our consultants go head-to-head on the question candidates ask us every week: What matters more – culture or compensation?
James Ardma, Senior Candidate Manager at Talent, argues for culture. Sophia Parrelli, Account Executive at Talent, argues for compensation. Here’s where they landed, and how you can use their advice in your next career move.
First things first, what do we mean by ‘culture’?
“Compensation is the hook that gets you through the door. Culture is what makes you want to stay.”
For James, culture is everything beyond your KPIs — how you’re developed, supported, and recognised. “It’s the relationship with your manager, the way people invest in you, and whether you can actually see a path forward,” he says.
Sophia agrees culture is important but adds a caveat “It’s the work environment around you — support, flexibility, benefits. But it thrives only when you’re paid fairly.”
Both also agree that culture can be incredibly subjective. What feels like an inspiring, collaborative workplace to one person might feel intense or overwhelming to another. Compensation, on the other hand, is factual and measurable – you can see the number, negotiate it, and benchmark it against the market. Culture? It’s about fit, chemistry, and how you personally define ‘good’.
The case for culture: momentum over money
James believes culture is the real differentiator when it comes to long-term fulfilment. He’s seen candidates take up to a 30–40% pay cut if it means joining a company that truly supports their growth and wellbeing, and if there’s a clear roadmap to progression.
“People don’t leave for money; they leave when they stop seeing momentum,” he says. “When candidates hear a genuine six- or twelve-month development plan, they’re more engaged, and they stay longer.”
Culture isn’t a ‘nice-to-have’. It’s a growth engine — and a strong one can cut attrition, increase engagement, and keep top performers from leaving. “The right environment compounds over time,” he adds. “That’s worth far more than a short-term pay bump.”
The case for compensation: The foundation everything sits on
Sophia’s takes a more pragmatic view: life is expensive. Rising living costs, housing and childcare make pay non-negotiable. Financial stability isn’t just a motivator, it’s survival.
“Great culture can’t pay your rent,” she explains. “70–80% of people I speak to are moving for better pay. And that’s okay.”
To her, fair compensation isn’t separate from culture; it’s part of it. “When people see layoffs or pay freezes, it erodes trust. Transparent, consistent pay practices are culture. They show stability and respect.”
In Sophia’s view, culture matters — but it’s not the lever that gets people through the door. “You can have all the free coffees and wellness days you like, but if your salary doesn’t reflect your value, that culture will only take you so far.”
Her advice? Be smart, not sentimental. “A company can have a fantastic culture and still go through redundancies six months later. Don’t just go on good vibes — do your research. That’s part of being a savvy job seeker today.”
The verdict: it’s all about balance
So, which one wins – culture or compensation?
In reality, they’re inseparable. Compensation is the foundation; culture is the amplifier. One gives you stability, the other gives you staying power.
The takeaway? Start with fair pay. Make sure you’re compensated in line with your skills and the market. Then, look deeper, how does the company invest in growth? What does success really look like there?
“Whilst money gets you through the door, culture is what makes you want to stay.” Says Sophia.
The final word
When it comes to choosing between culture and compensation, there’s no universal right answer, but there is a smart one.
Start with fair pay. Then look for the culture that helps you grow, learn, and stay inspired. Because money might win you the role, but culture is what makes you thrive in it.
Next up: Stay tuned for Part 2, where James and Sophia return to debate the employer
Perspective, what truly keeps people longer: a great culture or higher pay?