Counter-offers

Another factor affecting retention is the rise of ‘counter-offers’ – when existing employers offer increased salary to retain departing staff, particularly in the ‘future leaders’ age bracket 25–44.

Earlier this year, CIPD reported that 65% of finance leaders had seen a rise in counter-offers, traditionally more the preserve of City’s merchant banking but now also being seen in other financial centres and in law, IT and other professions: Randstad reports that 21% of construction and engineering professionals had been counter-offered when they last moved jobs.

According to Randstad research, the average counter-offer required to retain employees is 18% on top of current salary. But they are not an effective way to retain staff, usually only expensively delaying their departure: 37% of employees would still plan to leave within a year, and they can be seen as an admission someone has been previously underpaid.