Salary and benefits must be competitive

According to a recent Glassdoor study of recruiters, HR representatives, and recruiting managers, the main reason for 45% of employees quitting is income. This was followed by prospects for growth, greater perks, and location. Isn't it usually about money? According to a compilation of recent employee retention studies, only 24% of "Generation X" employees believe financial security encourages them to stay in a company. Yet, 56% of employees indicate that health care and insurance issues keep them at work. Advantages that are truly beneficial are important. Money is important. What you provide your employees in this area must be comparable to what other businesses in your sector and region provide.

After viewing such statistics, you'd be excused for thinking that the simplest solution to staff retention issues would be to offer more money and benefits. Without a question, these are two of the most important topics that employers must examine, and for some employees, this may be a required employee retention strategy. Yet, viewing this as the only alternative is a hasty decision that may cost your company more than it can afford. Pay and perks are vital and should be addressed, especially if you are paying below industry standards, but there are alternatives to costly raises and benefits for employee retention.