Employers are turning to generous counter-offers in a bid to retain staff as skills shortages persist, new research suggests.
According to the Chartered Institute of Personnel and Development (CIPD), 51% of employers who make counter-offers to keep employees have offered a higher number over the last 12 months.
A quarter of employers who have made competing offers think they will need to offer more in the next year, with only 8% to offer less.
The CIPD survey of 2,000 UK employers, taken between 9 June and 5 July 2023, also found that 38% of counter-offers matched the salary of the new job offer, and 40% offered even higher sums.
However, 29% of employers believe counter-offers are ineffective at retaining staff. According to the CIPD, this suggests it “may only be valuable as a short-term option and employees will move if the wider package does not meet their expectations”.
Jon Boys, senior labour market economist at the CIPD, said:
“While pay is often the most typical focus of a counteroffer, there are other things employers should consider in making roles more attractive, such as flexible working, additional paid holiday, opportunities for career development, or better pension contributions.”Talk to us about your business.