Employers are missing a key opportunity to retain valuable departing talent, according to new research that found almost all workers would reconsider their resignation if the counter offer was good enough.
A survey of 1,002 UK employees, the results of which have been published in The Loyalty Premium Report 2017 by incentives and rewards provider One4allRewards.co.uk, revealed that 91% of workers would be willing to consider staying at a company once they have handed their notice in, depending on what their employer offered them. But just 25% say that they have been made any kind of offer when they have made their employer aware of their decision to leave.
When polled about the things that would make them reconsider their resignation, 45% of respondents claimed a 25% pay rise would do the job. Changes to job titles were also effective in changing workers’ minds – as one in four (23%) would be tempted to stay if offered a promotion. Meanwhile, one in five (19%) would remain for a 10% pay increase.
Bonuses and incentives were also useful methods for counteracting a resignation – 17% could be won back with flexible working options such as the ability to work from home, and 16% with the promise of a bonus.
Declan Byrne, UK managing director at One4all Rewards said: “What this research shows is that a notice being handed in does not have to mean the end. If a member of staff is highly valued by a business, this data shows there are options which can be called upon – if it is deemed viable – in order to retain them.”
And with 62% of workers claiming that colleague departures make them feel unsettled, and more than one in five even having considered getting a new job themselves as a result, sometimes the impact a staff resignation can have on the wider workforce is damaging enough to warrant avoiding the situation altogether.
Byrne continues: “Considering how contagious the research shows staff departures can be, this is food for thought for employers. Of course, in an ideal scenario, workers would feel appreciated, progressive and happy enough that they will never want to leave. But even in that idealistic situation staff departures do happen, and it is good for businesses to bear in mind that the discussion that happens when an employee hands in their notice is a two-way conversation that they have the power to influence.”
Other recent research released by One4all Rewards highlighted the clear financial benefit of fighting to retain staff, revealing that the value of the loyalty of a worker earning the average full-time salary in the UK stands at £6,335.31 – or 23% of the average annual wage.
Top 10 things that would make employees reconsider their job resignation:
- A 25% pay rise – 45%
- A promotion – 23%
- A 10% pay rise – 19%
- Flexible working (e.g. flexi time / the opportunity to work from home on some occasions) – 17%
- A bonus – 67%
- Increased benefits (e.g. a larger bonus) – 15%
- Being given reassurance about job security – 13%
- Training and development opportunities – 11%
- A company car or being offered more support in the role (e.g. new hires, more opportunities for collaborative working) – 8%
- Changes to the team structure – 68%