Should You Increase Pay to Get Good Employees to Stay?

Should You Increase Pay to get Good Employees to Stay

Research shows that almost half of all employees are open to leaving their jobs under the right circumstances. For instance, millennials will hold 15-to-20 different jobs over the course of their career. And for all demographics, moving up usually means moving on – unless you can successfully grow top talent within your organization.

Now that the global economy is again producing jobs, highly skilled and business-critical workers are in unprecedented demand. Among their reasons for considering a job change are the desire to learn new things, the need to earn more, and the quest for a comfort level in case another financial downturn occurs.

Without a doubt, your strategy for engaging and retaining the best talent needs to include offering a competitive wage and benefits package. But that’s only the beginning.

Constantly contribute to your employees’ professional growth.

As you hire and manage your talent, think like a university. Recruit a new freshman class every year. Some will stay longer than others and some will drop out early, but inevitably, they will all move on. Effectively build retention by offering ongoing learning opportunities.

  • Thirty-five percent of people pick companies to work for based on growth opportunities. By providing continuous education, you enhance productivity, profitability and morale. In addition, you build your reputation and strengthen your brand. Similar to college alumni, current “students” and corporate alumni who had a good experience at your organization will recommend it to others.

Stay on the high end when it comes to salary.

You can expect your competitors to offer more money to your top-performing employees as they try to woo them away from you. Sixty-one percent of employees surveyed said pay was the single most important reason they would make a job move.

  • Stay abreast of the local talent market. Be sure you’re not paying below the 50th percentile for a job description. If you want the very best talent, go higher.

Never underestimate the importance of work-life balance.

Nearly 40 percent of today’s employees place high emphasis on work-life balance when deciding whether or not to stay at their companies. In one survey, close to two-thirds of respondents said they chose to stay because their current jobs fit well with the rest of their lives. Perks like telecommuting and flex time have never been more critical to your employee retention record.

People don’t quit jobs, they quit cultures.

Examine the DNA of your company and learn what’s of value to your key employees. Then you can make improvements to your culture as needed.

  • It all starts with an individual’s immediate supervisor. Then, moving beyond this fundamental relationship, employees scrutinize the character and impact of your overall corporate culture as they decide on their next career move.
  • Exit interviews tell the story. A new level of candor is achieved in exit interviews, where employees tend to open up because they have nothing to lose. Exit interview comments underline the importance of organizational culture. Actual comments include, “I don’t feel like I can trust people here, so I need to move on to a healthier place to work” and “The culture here is just too toxic. I can’t stay any longer.” Enough said.

The CPS Recruitment team of certified recruiters and account executives focus on meeting your specific hiring and talent management needs. We’ll partner with you to find the best talent for your organization. Contact us today at sales@cpsrecruiter.com or (315) 457-2500 to learn more.

 

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