Employers Ramp Up Counter-offers to Retain Staff
Employers ramp up counter-offers:
Employers are increasingly turning to counter-offers to retain key staff as skills shortages persist, new research suggests.
According to the Chartered Institute of Personnel and Development (CIPD), 51% of employers who use counter-offers as part of their retention strategy have offered a higher number over the last 12 months.
A quarter of employers who have made competing offers to leaving staff anticipate they will need to offer even more in the next year, with only 8% expecting to offer fewer.
The CIPD’s survey of 2,000 UK employers also found that 38% of counter-offers matched the salary of the new job offer, and 40% offered even higher sums.
However, only 29% of employers believe counter-offers are ineffective at retaining staff. According to the CIPD, this suggests the practice “may only be valuable as a short-term option and employees will move if the wider package does not meet their expectations”.
Jon Boys, senior labour market economist at the CIPD, said:
“While pay is often the most typical focus of a counteroffer, there are other things employers should consider in making roles more attractive, such as flexible working, additional paid holiday, opportunities for career development, or better pension contributions.”
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To make things even easier for employers, we’ve partnered with a small number of carefully selected providers so we can offer a more complete package. This includes support with HR and employee benefits, all important elements when it comes to staff retention, wellbeing and long-term satisfaction.
Please contact us to find out more.
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