Staff retention when competitors pounce
60% of HR professionals are voicing concerns over an increase in the number of offers received by employees from rival companies in the last 12 months, according to a survey commissioned by Ortus. 47% said that their company had a plan in place to deal with staff retention and protect itself against any loss in talent, although 57% admitted that they have not updated the plan in recent years.
When a rival offer is made, 64% of HR professionals propose that their company would make a counter-offer in order to retain top talent, with 75% proposing a higher offer. Yet 69% would not step outside their current pay structure or break the bank to do this. 38% of counter-offers were reported as successful; however 42% of HR professionals had experienced a rejection of a counter-offer.
Poaching of talent and head-hunting is now on the rise as the economy improves and employment figures grow. Companies are optimistic for their future and are formulating business development plans that will require the hiring of talented and experienced workers.
Advice for companies seeking to protect themselves from losing employees to rival forms include:
- Create a clear retention strategy that outlines actions when offers of employment are made by rival companies to existing staff
- Understand why an employee might want to leave and build a retention strategy based on prevention rather than reaction.
The reasons frequently cited as reasons motivating a move to another company include
- Career development (75%)
- Salary (72%)
- Improved work/life balance (29%)
Factors contributing to a worker’s unhappiness also includes weak management and a poor team culture.
As the research shows, companies are typically generous in monetary terms, offering improved pay deals. However the research also criticises the lack of creative initiatives intending to retain staff. Rather than financial gain, other benefits companies could offer include enriched worker experience and career development, flexible time schemes and attractive workplaces. These days employers are increasingly concerned with the ‘additional’ benefits of employment, particularly work/life balance and improved engagement in the workplace.
Candidate poaching is increasing. More than half of UK workers have admitted to having had an ex-colleague attempt to poach them, with 27% accepting the offer. It is a worrying reality for a large number of businesses, who are having to take their attention away from business development and onto staff retention.
If any of the issues raised in this article affect your business, please give us a call to discuss your options. We are happy to advise and find a solution that works for you and your business: 0800 912 7152