Posted by Michael Weiss on Friday, October 24, 2014 - 00:00
With retention concerns on the rise, chief financial officers and workers agree on the primary cause of employees quitting: money. In the Robert Half research, both groups reported inadequate salary and benefits is the top reason good employees leave their jobs.
“The stronger hiring climate today means employees who don't feel well compensated may be more willing to look for a new, better-paying job,” said Paul McDonald, Robert Half senior executive director.
How can business leaders ensure their organization is offering attractive compensation packages, and not pushing employees out the door? Here are four steps:
- Check with your network. What trends are your contacts seeing? What is working for their companies? What isn’t?
- Benchmark salaries. Industry reports such as the Salary Guides from Robert Half and Occupational Outlook Handbook from the U.S. Bureau of Labor Statistics report on salary levels for a vast array of positions. Consulting resources like the guides and local job listings also can help you customize pay ranges for your location and company size.
- Conduct internal surveys. Ask employees about the types of compensation they seek (keeping responses anonymous). Salary can be tricky to collect feedback on, but staff may be more willing to open up about the types of benefits that matter most to them. As important as salary is, incentives and perks are powerful retention tools, too.
- Keep communication channels open. Even though salary won’t be an everyday topic, checking in with staff regularly, even if just to say hello and see how their work is going, will help you gauge morale and give you a sense if there are larger issues you need to address. You may also spot red flags employees are looking to quit.
It’s not only about money, though
Even when you’ve taken all the steps above and are offering salary and benefits enticing people to join and stay with your firm, there’s more to do – money is only part of the retention equation.
Approximately one in five CFOs and workers surveyed cited limited growth potential as the top reason staff leave. The responses of another 14 percent of finance executives and 16 percent of workers backed up the idea people don’t quit their jobs but quit their bosses.