More money doesn't cut it

Sep 04 2003 by Brian Amble Print This Article

Offering employees who resign more money in an attempt to retain them can prove to be an expensive mistake, according to a report by recruitment firm Charles Fellowes.

Three-quarters of employees who agree to stay when offered more money leave again within 12 months, they say.

A salary increase of ten per cent may make a difficult working situation more acceptable to the employee for a short time, but the salary boost may also increase the employee’s confidence to apply for other jobs. So the pay increase may simply delay the employee’s departure.