Thursday, September 18, 2025
  • About
  • Write for us
  • Contact
Today News
  • Business
  • Tech
    AI chip on a sleek black background, symbolizing advanced artificial intelligence technology.

    How AI Can Optimise Cash-Out Functionality

    Illustration of AI technology transforming the workplace, showcasing robots and humans collaborating on tasks.

    NSFW AI Generator from My Dream Companion Redefines Visual Storytelling

    Nano Banana

    Nano Banana: Google’s Game-Changing AI Image Tool with Amazing Consistency

    Mental Health

    Mental Health Barriers Older Adults Face Due to Social Stigma

    Man typing on a laptop computer, focused on his work in a well-lit environment.

    The Coming Flatine Beep of AOL’s Dial Up Service – Are There People Still Using Dial Up?

    ChatGPT

    India’s IT Sector Embraces ChatGPT Alternatives: The Rise of Specialized AI Chatting Tools

    Digital Transformation

    The Role of Drupal in the UK’s Public Sector Digital Transformation

    Looking out from a window at a vibrant UK city street, with vehicles and people navigating the urban landscape.

    Smart Transport: AI Solutions for UK’s Urban Mobility Challenges

    AI Agents

    5 Tips for Using AI Agents in the Best Possible Way

  • Consumer
    Understanding the Baby Monitor Market: What’s Driving Growth and Innovation

    Understanding the Baby Monitor Market: What’s Driving Growth and Innovation

    Craving Connection: Why Food Gifting Is the New Love Language

    Craving Connection: Why Food Gifting Is the New Love Language

    How to Celebrate Milestones from Afar: The Rise of Digital Gifting in the UK

    How to Celebrate Milestones from Afar: The Rise of Digital Gifting in the UK

    How to adjust glasses at home – a step-by-step guide!

    How to adjust glasses at home – a step-by-step guide!

    Why quality toilet cubicle hardware matters

    Why quality toilet cubicle hardware matters

    Common Mistakes in KYC Identity Verification

    Common Mistakes in KYC Identity Verification

    Consumer habits

    British Furniture Market Sees Significant Changes in Consumer Preferences

    Why are high-street bookmakers declining in the UK?

    Why are high-street bookmakers declining in the UK?

    Straps for smartwatches: The Complete guide

    Straps for smartwatches: The Complete guide

  • Finance
    Visual guide on starting a business plan, highlighting key accounting and finance elements for new entrepreneurs.

    Finance vs accounting: Key differences and career paths

    The Role of Blockchain in Sports Beyond Cryptocurrency

    The Role of Blockchain in Sports Beyond Cryptocurrency

    Smartphone displaying a stock chart with fluctuating lines and data points.

    CHIPS Act Shake-Up: How Washington’s Plan Impacts Tech and Industry Stocks

    sifx.com: What’s Behind the Growing Buzz Among Traders?

    sifx.com: What’s Behind the Growing Buzz Among Traders?

    Georgia’s Free Industrial Zones (FIZ): A Strategic Choice for Crypto Businesses?

    Georgia’s Free Industrial Zones (FIZ): A Strategic Choice for Crypto Businesses?

    Senior Citizen in a wheelchair

    How to Support and Manage Your Parents’ Financial Decisions Through Dementia

    Mobile Apps for Managing Finances: What to Choose in 2025

    Mobile Apps for Managing Finances: What to Choose in 2025

    Bank Branch Presence in the UK: Then and Now

    Bank Branch Presence in the UK: Then and Now

    Financial graph illustrating investment performance

    Tradock Explained | What This Trading Platform Offers

  • Environment
    Five Ocean Discoveries That Could Change How We See the World

    Five Ocean Discoveries That Could Change How We See the World

    Choosing the Right Sustainability Partner: How Eco-Efficient Tech Transforms Industry

    Choosing the Right Sustainability Partner: How Eco-Efficient Tech Transforms Industry

    Moving Abroad? Here’s What to Expect – and Why Cardboard and Plastic Waste Removal Is Essential After Unpacking

    Moving Abroad? Here’s What to Expect – and Why Cardboard and Plastic Waste Removal Is Essential After Unpacking

    How Weather Events Like Heavy Rain or Heatwaves Affect Pest Activity

    How Weather Events Like Heavy Rain or Heatwaves Affect Pest Activity

    Building a Carbon-Competitive Advantage with Sustainability and Decarbonization Consulting

    Building a Carbon-Competitive Advantage with Sustainability and Decarbonization Consulting

    The Lost Art of Orienteering: Why Map and Compass Skills Still Matter

    The Lost Art of Orienteering: Why Map and Compass Skills Still Matter

    Sustainability in Dining: Reducing Waste for a More Profitable Future

    Sustainability in Dining: Reducing Waste for a More Profitable Future

    Environmental Benefits

    What Are The Environmental Benefits Of Choosing Eco-friendly Rubbish Removal In Croydon?

    Why You Should Hire Waste collectors for efficient waste removal

    Why You Should Hire Waste collectors for efficient waste removal

  • Property
    Red door labeled "Fire Exit Keep Clear," indicating it should remain unobstructed for safety.

    Fire door compliance: Essential considerations for contractors and housebuilders

    Furnished Apartments

    London Serviced Apartments: A Growing Trend Among Modern Travellers

    Close-up of Bungalow Houses

    The Key Reasons Park Bungalows Are A Smart Investment

    Discovering the Charlie Oven The Rural Ranges Ltd Approach

    Discovering the Charlie Oven The Rural Ranges Ltd Approach

    Sleek and Sturdy Bathroom Glass Shelves for Modern Homes

    Sleek and Sturdy Bathroom Glass Shelves for Modern Homes

    How to Streamline Your Home Expenses

    How to Streamline Your Home Expenses

    How To Plan Your Home Improvements in Six Easy Steps

    How To Plan Your Home Improvements in Six Easy Steps

    Budgeting for a House Sale: What Most Sellers Forget

    Budgeting for a House Sale: What Most Sellers Forget

    Home and business removals: Streamlining your move

    Home and business removals: Streamlining your move

  • eCommerce
    Ecommerce Platform

    What Makes a Global Ecommerce Platform User-Friendly

    From 1688 to shopee: the singaporean seller’s guide to paying china suppliers

    From 1688 to shopee: the singaporean seller’s guide to paying china suppliers

    The Importance of Digital Valuations for UK Ecommerce Brands

    The Importance of Digital Valuations for UK Ecommerce Brands

    Blink-and-Buy: Designing Checkouts That Convert in Under 10 Seconds

    Blink-and-Buy: Designing Checkouts That Convert in Under 10 Seconds

    High Stakes Strategies: Lessons E-commerce Entrepreneurs Can Learn from Casinos

    High Stakes Strategies: Lessons E-commerce Entrepreneurs Can Learn from Casinos

    Amazon Expert

    Amazon Expert: Key Qualifications to Look For

    Boosting Ecommerce Revenue with Smart Targeting Strategies

    Boosting Ecommerce Revenue with Smart Targeting Strategies

    Personalized Shopping: How Technology is Transforming Retail

    Personalized Shopping: How Technology is Transforming Retail

    How Can Ecommerce Businesses Learn From Entertainment Platforms?

    How Can Ecommerce Businesses Learn From Entertainment Platforms?

No Result
View All Result
Today News
Home Business

Evaluating the Effectiveness of Compensation in Employee Retention

David Prior by David Prior
December 4, 2024
Reading Time: 4 mins read
Evaluating the Effectiveness of Compensation in Employee Retention
488
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Employee retention is often framed as a puzzle, but compensation remains one of the most glaring pieces in plain sight. Nearly half of employees, or 48 percent, cite pay as the main reason they stay with an employer. On the flip side, more than half would leave for a better offer. While companies tout values like culture and flexibility, the paycheck still carries the most weight.  

Pay Programs and Delivery Gaps

Employers might want wages to work harder for them, but only about 50 percent of global companies say they meet two of six essential objectives in their pay structures. These objectives include goals like attracting and retaining staff, ensuring competitive compensation, and aligning pay with business strategy. The other goals—ranging from rewarding performance to promoting fairness—are even harder to hit. The data shows that employers recognize their shortcomings but seem unable or unwilling to correct them. That could explain why annual global turnover rates climbed to 20 percent in 2024.  

Related posts

Modern office interior with several desks and ergonomic chairs for employees.

How to Find a Bigger Managed Office for Your Business

September 17, 2025
492
Why Professional Brand Photography Drives eCommerce Conversion Rates

Why Professional Brand Photography Drives eCommerce Conversion Rates

September 17, 2025
16

Part of the challenge lies in pay communication. Fewer than one in four companies clearly explains how compensation is determined. This lack of transparency fuels salary compression—when new hires earn as much as or more than long-serving employees. Over half of employers already see this as a problem and expect it to worsen. The message is clear: businesses are struggling to keep up with competitive pay while maintaining clarity and equity within their organizations.  

Rethinking Pay Structures for Long-Term Retention

Pay structures are not a one-size-fits-all solution; their effectiveness often depends on how well they align with specific workforce needs. For example, regular benchmarking against industry pay rates ensures that compensation remains competitive. Integrating tools like payroll for small business, which can streamline salary adjustments and tracking, is another practical approach to maintaining equity and fairness. These measures directly influence employee satisfaction.  

Beyond fairness, the timing and consistency of pay can also affect retention. Employees are less likely to explore other opportunities if pay systems are transparent and payments are reliable. Consistent pay communication builds trust, reducing turnover risk.  

Non-Financial Factors in Retention

Compensation drives retention, but it does not work in isolation. Pay is essential, yet 41 percent of employees cite a lack of engagement and poor workplace culture as the biggest reasons they quit. Work-life balance and well-being follow as a close second at 28 percent. Companies that integrate pay increases with meaningful improvement in these areas see better results. For instance, boosting engagement can lower turnover by as much as 43 percent.  

Likewise, offering career development opportunities matters. Research shows that 94 percent of employees are more likely to stay with an employer if they feel their career growth is supported. Companies with a strong focus on professional learning and development achieve retention rates 57 percent higher than their peers.  

Another factor complicating retention is the preference for flexible work arrangements. Remote and hybrid models became more common after the global pandemic, and employees have come to expect them. Firms that resist this change face higher turnover rates as workers prioritize flexibility over outdated norms.  

The Real Costs of Turnover

Turnover is expensive, and many businesses severely underestimate its price tag. Replacing an employee can cost between 33 and 200 percent of their annual salary, depending on their role and industry. These costs cover recruiting, hiring, onboarding, and training, but they do not account for the loss of institutional knowledge and decreased morale among remaining employees.  

Paying employees what they are worth might sound simple, but low wages continue to be the top reason cited for turnover by 74 percent of human resource professionals. It does not take much to tip the scales—in fact, a modest 5 percent pay bump is enough to prompt nearly half of employees to consider offers elsewhere. Even small gaps in compensation relative to competitors can cause major turnover; warehouse employees who lost $1 per hour compared to other local businesses experienced a 28 percent jump in attrition.  

Addressing these gaps requires reconsidering not only how much employees are paid but how pay boosts are communicated. Transparency and fairness in pay structures can help make employees feel valued while stabilizing retention rates. Employers who ignore this issue may face situations where turnover among low-wage workers spirals beyond control—24 percent or more annually in many cases, with some employers reporting rates above 50 percent.  

Conclusion

Compensation is neither a magical fix nor an afterthought when it comes to fixing retention problems. It is a core driver closely tied to disengagement and turnover. Companies that fail to address pay gaps, communicate clearly, or invest in employee development risk losing talent to competitors who get it right. With global turnover rising and average employee tenure shrinking, businesses cannot afford to keep treating fair wages as optional.

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.

Previous Post

Where Do the San Francisco 49ers Go From Here After Dismal 2024-25 Campaign?

Next Post

A Deep Dive Into Solar Cables Including PV Wire and Connectors.

Related Posts

Modern office interior with several desks and ergonomic chairs for employees.
Business

How to Find a Bigger Managed Office for Your Business

September 17, 2025
492
Why Professional Brand Photography Drives eCommerce Conversion Rates
Business

Why Professional Brand Photography Drives eCommerce Conversion Rates

September 17, 2025
16
HTML Templates
Business

The Power of HTML Templates: A Shrewd Choice for Present day Web Design

September 16, 2025
346
Surfacing UK
Business

Smart Surfacing UK: Innovative and Safe Surfaces for Sports and Play

September 16, 2025
322
Real Estate
Business

Enhancing Property Value: The Architectural and Real Estate Benefits of Garden Rooms

September 16, 2025
316
Instagram Follower
Business

Instagram Follower Tracker and Story Viewer: Easy Guide for Everyone

September 16, 2025
455
Next Post
Solar Cables

A Deep Dive Into Solar Cables Including PV Wire and Connectors.

RECOMMENDED NEWS

Skincare Products

CeraVe Wholesale: Your Ultimate Solution for Quality Skincare Products

1 year ago
419
3D Strips 

How to Maintain White Teeth After Using Crest 3D Strips 

3 months ago
56
Surgical

Understanding the Importance and Uses of Artery Forceps in Surgical Procedures

1 year ago
405
First-Person Filming: Mini Cameras Transform Storytelling

First-Person Filming: Mini Cameras Transform Storytelling

2 months ago
475

BROWSE BY CATEGORIES

  • Business
  • Careers
  • Charity
  • Consumer
  • Culture
  • eCommerce
  • Education
  • Energy
  • Engineering
  • Entertainment
  • Entrepreneurs
  • Environment
  • Fashion
  • Finance
  • Food & Drink
  • Gaming
  • Gardening
  • Health
  • Insurance
  • Interiors
  • Legal
  • Leisure
  • Lifestyle
  • Manufacturing
  • Marketing
  • National
  • News
  • Opinion
  • Pets
  • Politics
  • Property
  • Sales
  • Sport
  • Sports
  • Tech
  • Transport
  • Travel
  • Uncategorized

BROWSE BY TOPICS

Agency AI autosmart banking Beauty business Christmas construction cyber security data digital Digital Marketing Services ecommerce entertainmnet finance fitness Forex health inflation insurance kitchen KYND lifestyle manchester music News north overseas Personal Injury Pharmaceutical Industry property Real Estate recruitment Sir Michael Morpurgo Skincare sports technology tourism travel UK vehicles Warkworth village watch workspace yorkshire

Latest news

Red door labeled "Fire Exit Keep Clear," indicating it should remain unobstructed for safety.

Fire door compliance: Essential considerations for contractors and housebuilders

September 17, 2025
Modern office interior with several desks and ergonomic chairs for employees.

How to Find a Bigger Managed Office for Your Business

September 17, 2025
Why Professional Brand Photography Drives eCommerce Conversion Rates

Why Professional Brand Photography Drives eCommerce Conversion Rates

September 17, 2025
AI chip on a sleek black background, symbolizing advanced artificial intelligence technology.

How AI Can Optimise Cash-Out Functionality

September 16, 2025
Illustration of AI technology transforming the workplace, showcasing robots and humans collaborating on tasks.

NSFW AI Generator from My Dream Companion Redefines Visual Storytelling

September 16, 2025
Visual guide on starting a business plan, highlighting key accounting and finance elements for new entrepreneurs.

Finance vs accounting: Key differences and career paths

September 16, 2025
HTML Templates

The Power of HTML Templates: A Shrewd Choice for Present day Web Design

September 16, 2025
Surfacing UK

Smart Surfacing UK: Innovative and Safe Surfaces for Sports and Play

September 16, 2025
Nano Banana

Nano Banana: Google’s Game-Changing AI Image Tool with Amazing Consistency

September 16, 2025
Mental Health

Mental Health Barriers Older Adults Face Due to Social Stigma

September 16, 2025

Today News

  • About
  • Write for us
  • Contact
  • Privacy Policy

@2024 Rooftree Publishing Ltd

Today News in association with Kajino.com

Sign up for our newsletter




  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce

Recent News

Red door labeled "Fire Exit Keep Clear," indicating it should remain unobstructed for safety.

Fire door compliance: Essential considerations for contractors and housebuilders

September 17, 2025
Modern office interior with several desks and ergonomic chairs for employees.

How to Find a Bigger Managed Office for Your Business

September 17, 2025
No Result
View All Result
  • Home
  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce
  • Write for us
  • About
  • Contact