Base salary of $150,000-plus, an annual raise and a bonus are still not enough to retain employees in supply chain, tech and IT roles, according to a Bastian Consulting survey.
“The higher number of resignations predicted is mainly due to the growing trend of rate shopping, where employees resign simply to receive a counteroffer from their existing company. Interestingly, the report shows what salary increase employees expect to receive, compared to the salary increase employers expect to pay, which is a sizable gap,” says Tony Richter, partner at Bastian Consulting.
“Given the challenges of the skills shortage, it is no surprise that salary remains a strong retention driver. However, mandatory counteroffers are on the decline in comparison to 12 months ago. Today, resignation does not automatically produce a matched offer. As explained in the report, employers are now more selective with counteroffers, looking at specific factors when deciding whether to offer one or not. In this year’s survey, we have also explored the way employers are using non-financial benefits, culture and development opportunities to retain their top performers,” adds Richter.
From Bastian Consulting:
- 78% of respondents reported a higher turnover rate in the previous 12 months, and 61% expect this to continue or get worse in the year to come.
- 60% of employees are dissatisfied with their salary, despite enjoying their role.
- 40% of respondents aren’t convinced they’ll stay with their employer for the next 12 months.
- 75% reported feeling stressed or anxious as the result of work in the last 12 months.
- 40% of those in management positions plan to hire more expensive temporary or contract staff, just to deliver on project pipelines.
- 30% of employers make counteroffers mandatory for all team members who resign.
- 84% of respondents have been contacted recently by a recruiter, even when they’re not actively job searching.
- Over 60% admitted they would reply to an unsolicited message from a recruiter, even when they’re not actively job searching.
- Over 25% said they would switch employers for as little as a 5-10% pay rise.
- 45% said they would switch employers for a pay rise of 10-20%.