Employers must think outside of the box if they want to retain their best executive talent, and money won’t necessarily be the answer.
Robert Walters’ latest report has revealed a list of problems that can lead to the resignation of a senior executive, along with tips on how to avoid it happening – or else cope with the departure when it does.
Retaining Your Senior Executives highlights the need for companies to offer executives the chance to progress, how poor communication can lead to insecurity and why complaints about pay can be a smokescreen for something else: a broader dissatisfaction with the company.
“Establishing the motivations behind the resignation is not only a crucial part of the process; it can help to prevent similar instances occurring in the future,” the report said.
“From our experience, opportunities for self development and progression, rather than money, are often the key factor behind a senior executive’s decision to move on. Inevitably, successful individuals get to a point where they feel ready to embrace a bigger role with a larger remit and greater accountability.”
The whitepaper also said that executives may be prepared to accept a package incorporating a lower basic salary with potential for a much larger performance related bonus.
In some cases, improved share options or long-term incentive plans (LTIPs) linked to performance objectives may also appeal.