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 counter offer, 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."
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