Is higher pay the answer to employee turnover?

Are employers doing enough to keep employees on board?

Among Canadian workers considering changing jobs in the next six months, 88 per cent say compensation is the most important factor, according to a survey by ADP.

And many employers are responding: Over a quarter (27 per cent) of employees say they have received a non-performance-related pay raise in the last six months.

And over a third (37 per cent) say these raises are above five per cent, finds the survey of more than 1,500 workers in June.

Read more: Could the “great resignation” be coming to an end?

A wide range of factors play a role in employee retention, such as the growing need for job flexibility and competitive compensation, says Ed Yuen, vice president of strategy and HR outsourcing at ADP Canada.

“While many Canadians find themselves in a new job, employers also need to put the focus on those who stayed in their roles. It’s now time for the ‘great recognition’ and to build a culture of appreciation.”

In the current economic climate, nearly a third (31 per cent) of workers are still actively looking for a new job, while 28 per cent are unsure, finds the Conference Board in a separate survey.

Focusing on retention

To retain the best talent, employers must track various factors that may impact overall job satisfaction among workers. They can do this by collecting regular feedback through anonymous surveys and regular check-ins to identify current priorities, concerns and needs, according to ADP.

When it comes to employee turnover, workers and employers don’t see eye-to-eye on numerous matters, according to a survey.

Here are some retention tips for employers, according to TriNet, a cloud-based professional employer organization:

• Rethink remote work.
• Empower employees.
• Put emphasis on DEI.
• Give constructive feedback.
• Invest in professional growth opportunities.
• Show workers you care about them as people.
• Be transparent.
• Offer rich employee benefits.