Why $100 million in compensation isn't always enough

When OpenAI CEO Sam Altman went public with news that Meta had tried — and failed — to lure away his top engineers with compensation packages worth over $100 million, it sent a clear message to employers: in today’s job market, talent retention isn’t just about money. 

What kept the talent at OpenAI? Altman credited the emotional connection his team felt to its mission to build artificial general intelligence (AGI) safely and effectively. 

“I think that people sort of look at the two paths, and say ‘All right, OpenAI’s got a really good shot, much better shot at actually delivering on superintelligence,’” Altman said on his brother Jack Altman’s "Uncapped" podcast.  

“But I think this strategy of a ton of upfront guaranteed comp, that being the reason you told someone to join – like, really the degree to which they're focusing on that and not the work and not the mission, I don't think that's going to set up a great culture.”  

The importance of strong leadership in talent retention 

According to Laura Tarrant, Director of Human Resources at Waterloo-based tech development firm VueReal, it’s not quite the message Altman thinks; as she explains to Canadian HR Reporter, while Altman’s comments aren’t wrong, they’re not exactly right, either.  

For her, true talent retention comes down to the connection employees feel with their managers. In fact, she feels it’s one of the most overlooked aspects of company culture and retention.  

“We need to start thinking a little bit more old school about the actual connection with people,” Tarrant says.  

“To be more frank about it, they're staying because their managers are leading. And it's very difficult in this world to find managers that lead.” 

As head of HR at a company built on fast-moving technology, Tarrant has seen firsthand how innovation on its own can be mistaken for an employee motivator. New tech tools may promise to make work “faster” or “cut your time in half,” but as she explains, leaders can fall into a trap of over-relying on technology:  

“We get stuck on words like ‘faster’,” she says. “We’re forgetting the people side of it.” 

Setting the tone: values and affective commitment 

According to Marie-Hélène Budworth, professor and Director of the School of Human Resource Management at York University, retention begins with a shared identity. 

“What that [OpenAI] example really gets at is the idea that companies are entities that have an identity, that have a culture, that has shared values, shared goals, shared ideals,” Budworth says.  

“If a company is really good at setting those shared values, and really living into them, they can create the type of environment where people are committed to the organization, are committed to the entity because of what the entity is trying to achieve, or what they collectively believe in.” 

This kind of values alignment often leads to affective commitment, Budworth notes—the kind of loyalty rooted in emotional connection rather than financial necessity.  

Importantly, the company’s product or service doesn’t have to be innovative or world-changing to inspire staying power, she adds; “Even if your output is corporate, and is financial and is about making money, you can still have values and ideals about how you do that.” 

Leadership sets the example — HR brings it to life 

But what if the organization – or its senior leadership – doesn’t have strong values for employees to connect to? According to Budworth, that’s where HR leadership really comes into play, as not only a values disseminator, but as a crucial guide and strategist.   

“Part of HR’s role is to influence leadership, or to even help leadership come to an understanding about what is it you're trying to achieve,” she says. 

“What are the things that are critically important to you, and how you achieve those objectives, and then interpreting that into policy and practice. It might be about influencing leadership into coming up with values, but it might be also just about helping leadership understand and draw out their values, and understand the implications of those values for the workforce.” 

Tarrant points out that even with big signing bonuses on the table, if an employee genuinely thinks their employer is invested in their career because they’ve connected with them personally, the jump will not be an easy sell.  

“[Money] isn't going to make a difference,” says Tarrant.  

“If you are getting the coaching, if you are getting the feedback on a day-to-day basis, on a week-to-week basis, on a month-to-month basis, that connection is solid. They're not going to look at other opportunities.” 

Budworth adds that in order to achieve the loyalty-inspiring cultural foundation Altman spoke of, the initiative needs to come from the top – the very top. She emphasizes that human resources plays a critical role in interpreting leadership’s goals into lived experiences for employees. 

“It has to be ingrained into how the company operates on all levels. HR certainly has a role, because HR interprets,” Budworth says. 

“HR is really responsible for making sure that employees feel, understand and are treated in ways that are in line with the values of the organization.” 

Defining purpose beyond profit 

According to Budworth, mission-driven workplaces — even those that are profit-oriented — can be built to motivate people through shared goals.  

“You can have a business idea that is profitable, but you can also have an idea around how to create a company that will really get your people engaged, motivated and committed. And that's what values can do for you,” Budworth says. 

Tarrant adds that transparent pay equity practices can also strengthen retention when employees are potentially tempted by higher compensation elsewhere; set up strategic, clear pay scales, and employees will have the security of knowing where they are headed, financially. 

“If you know that you're going to get a promotion in a month from now, because we have career mapping and you know what you need to do as far as education, coaching, feedback to get that opportunity, and it's the same opportunity for everyone at the company, you're not worried about compensation,” Tarrant says. 

“I don't ever feel that as an organization you should wait for your employee to come to you and ask you for a raise. You should already have that succession planning in place, you should already have the tools in place for the managers to be able to make those decisions.”