For the third year in a row, PayScale’s 2015 Compensation Best Practices Report (CBPR), discovered that employee retention was a top concern among the majority of employers.When asked, “How much of a concern is employee retention in 2015?” 57 percent of employers answered retention was a “top” or “high” concern. In fact, concern surrounding this topic is up 125% since 2009. Regardless of the size of the company or sector of the market, all organizations reported having significant worry about curtailing their employee turnover rate.
Employers in the scientific and tech services were among those most likely to report retaining star employees as their first compensation objective. This is likely due to a high demand for skills in the STEM sector coupled with a low number of potential employees who can fill these positions.
Finding superstars is more daunting than ever, and employers don’t seem to know what the magic potion is for keeping employees with their company.
According to Payscale’s CPBR, the top three reasons for an employee leaving a company are personal reasons, seeking higher pay elsewhere (these two tied for first place), and seeking advancement elsewhere.
In today’s chaotic economy, an employee is going to go where the money is, and offering a competitive wage is an absolute must for organizations hoping to boost their retention rates. Despite this, only 7 percent of employers plan on increasing wages for the purpose of retaining their employees. Rather, most companies are looking to put their focus on development and learning opportunities as a means of retention. Additionally, the 89% of employers that do plan to give raises will do so by 5% or less.
No company wants to be notorious for being a turnover factory, but the talent war has made keeping the best employees about as easy as pulling teeth from a hungry shark. To retain your talent, make sure you’re paying fairly and communicating compensation in a transparent fashion.
Hang on to your best employees. Learn more about retention when you download PayScale’s 2015 Compensation Best Practices Report.