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Economic recovery fuels staff retention worries

The economic recovery is generally good news but it is driving concerns among UK financial firms about retaining their best staff.

Research by recruitment firm Robert Half found that 87 per cent of companies are worried about losing their top employees to other firms and more than half plan to increase base salaries for existing employees.

Employers are also reluctant to reduce bonuses, with 28 per cent increasing payments and 49 per cent maintaining current levels.

Robert Half financial services global practice director Neil Owen points out that employers’ commitment to reviewing remuneration packages has reduced the number of employees looking to move jobs after receiving their bonuses.

He says: “As employees’ remuneration expectations increase, businesses must re-evaluate their compensation programmes, ensuring they are competitive.”

The company says the best ways to retain staff include communicating with all staff clearly and regularly to ensure they understand and share the vision behind the team or company. 

Firms can also give staff additional roles and responsibilities that motivate them; reward them with bonuses for meeting personal performance targets that feed into business targets and provide benefits for individual motivation, such as flexible hours for staff who need them.

IFA firm deVere United Kingdom head of UK recruitment Paul Greveson says: “I get calls all the time from people who are looking to move jobs. 

“The main reason is that their current companies are not delivering what they said they would at the interview. Companies need to manage people’s expectations and deliver.”

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