UK employers are increasingly making counteroffers to keep staff who are tempted by higher wages from rival firms, according to a survey of 2,000 employers by the Chartered Institute of Personnel and Development (CIPD) which said human resources executives expected to increase basic pay rates by a median 5% over the coming year – unchanged from the previous two quarters and the joint-highest readings since the survey started in 2012. Pay expectations in the public sector rose to 4%, the highest recorded by the CIPD, from 3.3%. Two-fifths of employers said they had made a counteroffer to keep staff in the past year. Where a counteroffer was made, in 38% of cases it matched the competing salary and in 40% of cases it exceeded it. However, almost a third of employers believed counteroffers were ineffective at keeping staff. “For some employers, counteroffers may only be valuable as a short-term option and . . . employees will move if wider aspects of the job, such as workload, autonomy and environment, don’t meet their expectations,” the CIPD said.
Our HR Comment: – UK employers’ resort to counteroffers to retain staff, survey says.
Matthew P Chilcott – FCIPD, ACEL, Owner of Consensus HR comments: “This is a very interesting article from our Chartered Institute in relation to many UK employers offering counter offers to retain staff and the percentages make an interesting read. It really depends on the business and what it hopes to achieve from this as from experience I have seen some employers do this, but the advantage is short lived. Usually when a person has made the decision to leave, then it is best that they do leave as their heart and loyalty is no longer with the business. Employers need to ensure that the work environment, culture and everything else HR and Operational is continually developed to best practice and as the law changes but ensuring that their teams as kept up to date and encouraged to play a part in the changes whilst giving suggestions etc and carrying out structured Performance Reviews that allow all members of the team to have their quality time with their manager and the opportunity to discuss any gripes they may have whilst looking at their career plan and developing / updating of skills required. We suggest, Performance Reviews should take place at least every six months but to remember that set objectives are live all the time and should be part of a regular conversation with the team members and adapted, if needed. New blood within a business is sometimes good, but you also do not want to lose all the old blood as recruitment of new team members can be very expensive both financially and time wise!”
YOUR OUTSOURCED HUMAN RESOURCES DEPARTMENT.
For further information on any of the HR subjects we provide, please click the heading below: