Offering more money to make employees stay is temporary solution: survey
Posted July 17, 2018 7:08 pm.
Last Updated July 17, 2018 7:10 pm.
This article is more than 5 years old.
CANADA (NEWS 1130) – More money, same problems. A new survey has found companies countering with higher salaries to keep workers from leaving, will most likely end u-p losing that employee anyway.
Mike Shekhtman with Robert Half, a specialized staffing firm, says the method serves only as a “stop-gap” retention strategy.
“It’s not a sustainable approach to retain people,” Shekhtman says. “Ultimately, there’s a deeper root to why people are motivated to jump ship and there are other causes beyond the money motivation.”
Shekhtman says senior managers surveyed found employees who accept counteroffers only remain at their current workplace for about 1.7 years. The managers surveyed represented multiple fields, including finance and accounting, technology, legal, marketing and advertising, and human resources.
According to the survey, managers quoted a prevention of institutional knowledge as the main reason for offering more money to an employee.
Shekhtman says workers need to carefully evaluate whether a higher salary in the same role will keep them satisfied long-term before accepting a counteroffer.
Shekhtman says those thinking of leaving their current job should first create a list of reasons for leaving their current position, look within the company for other opportunities, and be aware of the potential consequences of accepting a counteroffer.
More than 570 hiring decision makers across Canada participated in the online survey.
