Staff retention when competitors pounce

Home Articles Industry News Staff retention when competitors pounce
a
DSC

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

Share:
Facebook
Twitter
Pinterest
LinkedIn

Leave a Comment

Your email address will not be published.

Social Media

Latest Posts

RIDDOR Landing page v x

What are RIDDOR Regulations & What are Employer’s Responsibilities for RIDDOR Reportable Incidents?

Firstly many people ask what RIDDOR means, RIDDOR stands for reporting injuries diseases, and dangerous occurrences. Accidents at work can happen, even with the best …

An Employer Guide to Disciplinary Action and Police Investigations

An Employer’s Guide to Disciplinary Action and Police Investigations

Without wishing to delve too heavily into the current (alleged) political shenanigans, there has been much discussion about the announcement of an investigation by the …

covid vaccine 800x296 1

Your Complete Guide to Mandatory Covid-19 Vaccinations

Earlier this month the government announced that The Health and Social Care Act 2008 (Regulated Activities) Regulations 2014 amendment had been passed by Parliament. The …

working from home

Can employers adjust sick pay for unvaccinated workers?

Can employers adjust sick pay for unvaccinated workers? There has been a lot of media coverage recently about various companies who are reducing sick pay …

working from home

Working from home: FAQs for employers

This week the Prime Minister, Boris Johnson announced the implementation of Plan B of its COVID-19 winter response due to rising numbers of COVID-19 cases …

On Key

Related Posts