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Employers Ramp Up Counter-offers to Retain Staff

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.”

At David Howard, as well as our Payroll, Accounts, bookkeeping and audit services, we  have partnered with some select companies to make sure we can offer you a complete package of services covering Pension, HR and Employee benefits – all essential when it comes to staff retention and satisfaction.

Please contact us to find out more.

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