Currently, almost 80% of candidates have more than 1 job interview in progress and are much more likely than in the past to be actively comparing offers from different employers.
Why is this happening?
- Competitive labour market
The labour market today is more dynamic than ever. With unemployment falling and competition between companies increasing, employers are looking to retain their talented staff at all costs. When they learn that their employee has an offer from another company, they often respond by increasing pay or improving working conditions in order to retain them.
- Financial motivation
For many employees, pay is the main motivating factor. According to surveys, more than 50% of employees say that better financial conditions are a reason for changing jobs. If their current employer offers them a higher salary, they often see this as a better option than starting afresh with a new company.
- Comfort and safety
Changing jobs means leaving familiar surroundings, colleagues and habits. Many people prefer to stay in familiar company where they feel safe and comfortable, even if it means staying in slightly worse conditions. Therefore, if their current employer improves their conditions, they often decide to stay, despite having confirmed their new employer.
How to deal with it?
- Stronger employer branding
Focus on building a strong employer brand. Invest in creating a positive work culture that attracts and retains talent. Employees who are satisfied with the work environment and company culture are less likely to leave for higher pay. According to a Glassdoor study, up to 75% of job seekers consider company culture before applying for a new job.
- Competitive remuneration
Regularly review and update wages and benefits to stay competitive. Know the market standards and try to stay one step ahead. Transparent communication about the possibility of pay rises can also reduce the incentive to look elsewhere for better paid positions. Mercer’s survey analysis showed that employees who have communicated room for financial growth within the company are much less likely to seek new employment.
- Career development and learning opportunities
Communicate openly about career development and learning opportunities. Employees who see an opportunity for personal and professional growth in your company are not considering leaving for short-term financial benefits elsewhere. A LinkedIn Learning study found that 94% of employees would stay longer at a company that invested in their career development.
- Open communication
Maintain open communication with your employees. Regular feedback and conversations about satisfaction and expectations can uncover potential problems before they become intractable. Employees who feel their voice is heard are more loyal to their employer. According to a Gallup poll, companies that have high employee engagement have 21% higher profitability.
Examples of successful employer branding in Slovakia
- ESET
ESET is a well-known technology company that emphasizes innovation and talent development. It offers its employees a modern working environment, promotes work-life balance and provides opportunities for training and career development. Their employer branding is built on a strong company culture and innovative projects that attract top talent.
- Sygic
Sygic, a well-known navigation application company, focuses on providing flexible working conditions, including the ability to work remotely. Their employer branding is supported by an emphasis on innovation, modern technology and a strong company culture that fosters creativity and professional growth.
- Pixel Federation
Pixel Federation is a gaming company that is known for its open and creative work environment. They offer their employees a range of benefits, including flexible working hours and various training opportunities. Their employer branding focuses on fostering teamwork and innovation, making them attractive to young and creative talent.
Conclusion
Losing a candidate due to overpaying by a current or other employer is frustrating, but can be avoided with strategic steps. Strong employer branding, competitive pay, career development opportunities and open communication are key factors that can help retain talented employees. At Trigon Consulting s.r.o., we have extensive experience in setting up HR processes that contribute to the stabilization and long-term motivation of work teams.
