The pay packet still decides whether workers stay or go – London Business News | Londonlovesbusiness.com

Salary remains the number one reason employees will stay with a company or leave.

Nearly two thirds (62.3%) of UK workers said money was the most decisive factor when choosing a company – far beyond the appeal of perks including job security (48%) and an interesting working environment (31%).

Furthermore, nearly half (46%) said long-term pay dissatisfaction would prompt them to leave a company, making pay the most critical incentive for employee retention.

That’s according to new research from SD Worx, the leading European HR solutions provider. To probe business trends and challenges, SD Worx surveyed 5,000 businesses and 18,000 employees in 18 countries across Europe, including the UK, France, Germany, Italy, Spain and Belgium.

Pay pain points

Strikingly, the research highlights a raft of pay complaints from the UK workforce. Less than half of the workforce (47%) is satisfied with pay as a whole. Additionally, only 49% of workers feel that their current salary is competitive in the labour market and just 52% feel they are paid fairly compared with colleagues working at a similar level in their own organisation.

The research also shows that pay packages – the wider bundle of perks and benefits received in addition to pay – are failing to impress. Despite having an average of eight types of pay packet benefits on offer – against a European average of 7 – there’s a rising disconnect between what UK workers want and what they get. For example, nearly half (46%) want extra leave days yet on average just 30% have this option.

The research also shows employees are struggling to understand the value of their total pay package. Less than half (47%) are satisfied with the transparency of their pay package policy and just 50% feel communication about salary and pay packages is sufficient. In addition, only one quarter (25%) said they could personalise their individual pay packages to meet their own needs and interests, despite 50% being in favour of greater control over what they receive.

Commenting on the findings Laura Miller, UK People Country Leader at SD Worx said, “It’s no surprise that money is still make or break for companies in attracting and retaining good talent. The cost-of-living crisis has stretched household budgets and for many there’s just been too much month at the end of their pay.

Recent years have seen employers really step up in terms of supporting flexible working and rolling out a wider variety of perks and incentives to appeal to more. However, its abundantly clear that there’s still a way to go in achieving the personalised pay package that meets the specific needs of every individual employee.

Money matters, absolutely, but employees also place high value on a personalised benefits package that supports them how, when and where they want it. Whether it’s study programmes, flexible working, extra days off or health and wellbeing schemes, employees will only truly understand the value of the package when it’s helping them thrive both in and out of the workplace. That’s why it’s vital companies think very strategically about an effective salary plan that offers as much personalisation as is practical.”