We're certainly in the latter category, so this is an important distinction. I do think groups in product organizations have this freedom where operational groups don't, though something similar may be possible there.

But remember the iron law of supply and demand. If a company provides a benefit (say, "months of paid vacation any time of the year on no notice"), and the market values that benefit, candidates will factor that into their compensation negotiation and the salary the company needs to pay for a given level of quality will decrease. In other words: you're paying for the vacation policy one way or the other.

I don't really think that talent is best thought of as an efficient market. People are empirically quite limited in their ability to perceive ahead of time the situations in which they will be the happiest or most productive, and salaries seem to be primarily determined by societal norms.

For us, the decision mostly hinges upon whether or not our employees will actually be happier, more creative, and ultimately more productive under the new model. The policy might sway a few candidates that would otherwise look elsewhere, and it might retain several candidates confronted with lucrative alternative offers, but ultimately it's how it will effect the team's spirit that really matters.