Want to hold on to people? Pay them enough

In spite of all the chatter about the so-called Great Resignation and Quiet Quitting, whether people decide to stay with or leave an employer still largely depends on whether they think they are paid enough. According to a new poll from SD Worx, pay remains the number one reason employees will stay with a company or leave. For the report, SD Worx surveyed 5,000 businesses and 18,000 employees in 18 countries across Europe, including the UK, France, Germany, Italy, Spain and Belgium.

Nearly two thirds (62.3 percent) of UK workers said money was the most decisive factor when choosing a company – far beyond the appeal of perks including job security (48 percent) and an interesting working environment (31 percent). Furthermore, nearly half (46 percent) said long-term salary dissatisfaction would prompt them to leave a company, making pay the most critical incentive for employee retention.

According to the survey, less than half of the workforce (47 percent) is satisfied with pay as a whole. Additionally, only 49 percent of workers feel that their current salary is competitive in the labour market and just 52 percent feel they are paid fairly compared with colleagues working at a similar level in their own organisation.

The research also suggests that pay packages – the wider bundle of perks and benefits received in addition to pay – are failing to impress. Despite having an average of eight types of pay packet benefits on offer – against a European average of 7 – there’s a rising disconnect between what UK workers want and what they get. For example, nearly half (46 percent) want extra leave days yet on average just 30 percent have this option.

Less than half (47 percent) are satisfied with the transparency of their pay package policy and just 50 percent feel communication about salary and pay packages is sufficient. In addition, only one quarter (25 percent) said they could personalise their individual pay packages to meet their own needs and interests, despite 50 percent being in favour of greater control over what they receive.