In today's corporate environment, talent is more important than capital, strategy, and even research and development. Capital is readily available. Strategies can be copied. Technology is time-limited. Make no mistake about it. People are your primary source of competitive advantage.

Yet the talent pool is rapidly diminishing, setting the stage for an all-out, knock-down, drag-out, no-holds-barred War for Talent. Author Charles Fishman explains: "In 15 years, there will be 15% fewer candidates in the 35 to 45 year-old range than there are now. At the same time, the economy is expected to grow at a rate of 3% to 4% per year. So over that period, the demand for bright, talented 35 to 45 year olds will increase by, say, 25%, and the supply with be going down by 15%. That sets the stage for a talent war."

So with the increasing importance of talent, and a diminishing talent pool from which to choose, how does a company go about attracting the best people? You start by building a better offer.

Though the definition of a "better offer" will vary by demographic, one thing is clear. Flexibility is key and choices should be offered to candidates which enable them to play an active role in their future. This means tailoring programs to meet a diverse range of employee needs. This tells the candidate from day one of the relationship that they are a valued individual.

How widely do needs and aspirations vary by demographic? Say Natalie Lacey and Dave Cosgrave of 'D-Code', "Today's 20 and 30-somethings are delaying traditional commitments such as marriage, family and home ownership longer than past generations. They also tend to be highly mobile within the work force, changing jobs every two to five years." It would be a mistake, they conclude, to assume the traditional benefits package based on the nuclear family would appeal to them.

In fact, research suggests that the recent crop of MBA graduates are starting to view a company's work-life balance as more important than even salary, which is in striking contrast to the workaholic mentality of the '80s. This is good news for companies which find it difficult to compete with the premium salaries and stock options readily available at larger corporations.

So it's no wonder that many companies are repackaging the standard benefits package as a flexible rewards package which goes beyond compensation and benefits to include an appealing corporate culture, company philosophy, skills development and anything else which might contribute to the overall value proposition the employer brings to the table.

Building a better offer is all about knowing what hot buttons to push. In the 20 to 30-something segment, consider these key motivators:

• A desire for personal growth with career development training and education.
• A desire for a healthy work/ life balance, with stress management courses, gym memberships, even massage therapy to pre-empt computer-related muscular conditions.
• Tailor made investment programs which offer the employee choice in the level and type of investment, plus the option to take those investments with them when they leave.
• A carefully cultivated corporate image. Understand the appeal of working for a company with a "mission" or a social conscience.

During the interview process, ask all, and not just your preferred candidates what it is that makes a job great to them. Is it "elbow room", the ability to move laterally, and access a wider realm of corporate experience? Or, "head room", the authority to make autonomous decisions. Perhaps what is most important to them will be the quality of the people they work with and report to. Listen and make notes. Building in these key points will help you build a better offer. And there's no better way to start than that.