In April, we asked readers if a star employee were offered a job with another company, how much of a pay increase over their current salary or wage would they offer to retain them? And with 39% of the votes, the top response was a 5 – 10% increase, followed by an 11 – 15% increase in second place with 14% of the votes. Thirteen percent of respondents noted that they would not offer a pay increase. The rest of the results are as follows:
- 16 – 20% increase: 11%
- 3 – 4% increase: 9%
- 21% or more increase: 6%
- 1 – 2% increase: 1%
Another 7% of respondents selected the “Other” option and submitted their own thoughts on the topic, including:
- Depends on circumstances and what salary range is for the same job in the industry.
- We would discuss and find out why they were looking.
- We’d offer more vacation days and perks.
- It’s a tricky situation. If the employee is unhappy and looking, pay might not be the main issue.
In a similar poll on Job Journey, the Express Employment Professionals blog for job seekers and people early in their careers, readers were asked if offered a new job opportunity with a different company, how much of a pay increase over their current pay it would take to stay with their employer. The results were as follows:
- 16 – 20% increase: 21%
- 5 – 10% increase: 19%
- 11 – 15% increase: 19%
- 21% or more: 18%
- 3 – 4% increase: 7%
- Other: 7%
- I would stay in my current job without a pay increase: 6%
- 1 – 2% increase: 3%
Benefits Are the Key
In a job seekers market, skilled workers often hold all the cards, so the pressure is building on companies to do whatever it takes to retain workers. In many cases, benefits become the key differentiator for talented employees when weighing their options with another company. In a previous Refresh Leadership article, we highlighted four ways employers retain employees with benefits, including:
- Wages and Bonuses: Although money isn’t everything, it will always be a big thing. So, many businesses are re-evaluating their compensation structures to ensure they stay competitive.
- Family Benefits: In addition to individual employee benefits, more companies are enhancing the way benefits impact a worker’s family, including paid family leave policies or expanding benefits to include elder care or, in some cases, even pet care.
- Education and Training: Companies are increasingly offering workers education benefits that help them secure different jobs within the organization in the future, hoping that it will help them retain these workers.
- Workplace Culture: As valuable as raises, bonuses, benefits, and education can be, the most important step a business can take to retain employees is to improve the workplace culture.
What are some ways your company has enhanced its benefits to be more competitive and retain top talent? Let us know in the comments section below.