More money doesn't cut it


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.