It pays to pay well – research has found that remuneration is the number one factor for UK employees considering handing in that resignation letter.
Willis Towers Watson’s Global Workforce Study shows that 32% of employees in the UK are likely to leave their current job in the next two years, with salary as the biggest ‘demotivator’ to stay. The same survey found that 49% of workers are worried about their financial future while only 48% feel they are being paid a fair amount.
With people leaving for greener pastures, employers are witnessing an upturn in the job market. The Global Talent Management and Rewards Survey – another Willis Towers Watson study conducted in the second quarter of 2017 – revealed that 30% of UK employers saw increased hiring activity compared to 2016.
For 29% of employers, retaining high-potential employees and top performers is proving to be more challenging amid rising employee turnover.
“As churn increases in the labour market, employers need to get savvier about what makes staff tick if they are to succeed in bringing the best people into their workforce and importantly go on to keep them in the business,” said Tom Hellier, GB practice lead, rewards at Willis Towers Watson.
He noted: “Increased pay transparency through websites like Glassdoor, coupled with mounting anxiety fuelled by headlines about stagnant pay growth has re-focused workers’ minds on their salary and whether they are getting a fair deal.”
While allotting more for the salary budget could be difficult in the current economic climate, Hellier believes there are ways business leaders can address the matter.
“Improving perceptions of fairness is still possible if companies are able to articulate how pay decisions are made and demonstrate effective differentiation through better alignment between pay and performance. Companies should also ensure that employees understand the value and rewards that are included in their total package,” he explained.
The Willis Towers Watson Global Workforce Study covered over 36,000 employees across a range of industries in 29 markets around the world. The Willis Towers Watson Global Talent Management and Rewards Survey, on the other hand, featured responses from more than 2,000 companies worldwide.
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