Employers hike pay to boost retention: report

Flexible working hours second most popular offering in Australia, U.K., Ireland and Canada

Employers hike pay to boost retention: report

Employers in four economies have hiked wages to retain and attract employees amid a tight labour market across the world, according to a new report.

A survey by Peninsula Canada among 79,000 businesses in Australia, Canada, Ireland, and the United Kingdom revealed that over 60% of employers used "financial renumeration" to aid retention in the workplace.

According to the report, 71.2% of employers in the UK took this step to retain talent, as well as 69.8% in Canada, 68.2% in Australia, and 55.1% in Ireland.

It comes as employers grapple with the so-called great resignation that was made worse by the pandemic, with pay emerging as one of the biggest motivator for employees to stay amid rising costs of living.

Flexible working hours, another pandemic-prompted benefit, became the second-most-offered support by employers to employees, with over 40% providing this benefit.

By nation, 56% of businesses in Australia offer flexible working hours to boost retention, as well as 55.1% of businesses in Ireland, 48.1% in Canada, and 44.7% in the United Kingdom.

Skills shortage

Pay hikes are also the most cited method of employers in handling the ongoing labour shortage across the world, with over 50% of businesses taking this step.

Over 60% of Canadian businesses hiked pay to handle the labour shortage, according to the report, as well as 53.9% of UK businesses, 53.1% of Irish businesses, and 49.7% of Australian businesses.

Flexible working hours as well as upskilling and training also emerged as the top solutions for employers in addressing the labour shortage, the report revealed.

Top 2023 concerns, goals

These findings come as employee retention and labour shortage emerged as the top concerns of businesses in 2023, according to the Peninsula Canada report.

But an even bigger concern for employers is the rising costs, revealed the report, with Canadian (73%), Irish (87.8%), and UK (79.9%) employers most worried about this challenge.

In Australia, 48.5% of employers cited rising costs as their top concern, but it is only behind labour shortage (66.2%) and employee retention (52.8%).

When speaking about goals, more than half of employers in Australia (62.9%), Canada (59.7%), Ireland (53.1%), and UK (58.9%) said they want growth.

And in response to the tight labour market, nearly 30% of all the businesses surveyed said recruitment is their top goal. 

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