Friday, May 30, 2025
  • About
  • Write for us
  • Contact
Today News
  • Business
  • Tech
    Top Reasons Why Free VPNs Are Still a Smart Choice in 2025

    Top Reasons Why Free VPNs Are Still a Smart Choice in 2025

    Benefits of a Global Free VPN Extension

    Benefits of a Global Free VPN Extension

    Digital Education

    EdTech in the UK: Are We Ready for the Next Phase of Digital Education?

    Virtual Numbers vs SIM Cards: Which Is Best for International Business?

    Virtual Numbers vs SIM Cards: Which Is Best for International Business?

    How Secure is Your Client Portal?

    How Secure is Your Client Portal?

    Machine to Listen

    What Happens When You Teach a Machine to Listen

    Revolutionising Business Connectivity: The Power of eSIM Technology

    Revolutionising Business Connectivity: The Power of eSIM Technology

    How to Buy a Second-Hand Tablet in the UK Without Getting Ripped Off

    How to Buy a Second-Hand Tablet in the UK Without Getting Ripped Off

    Msafely Review: Is it the Best iPhone Spy Software of 2025?

  • Consumer
    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

    High street retailers are at a “crossroads”, says retail tycoon

    High street retailers are at a “crossroads”, says retail tycoon

  • Finance
    What is Automated Invoice Processing?

    What is Automated Invoice Processing?

    The UK Treasury Aims to Introduce a Single Tax for Remote Gambling

    The UK Treasury Aims to Introduce a Single Tax for Remote Gambling

    Eriongroup.biz Reviews: Confident Investments with a European Broker

    Eriongroup.biz Reviews: Confident Investments with a European Broker

    How Crypto is Enabling Micropayments for Content

    How Crypto is Enabling Micropayments for Content

    Fan Tokens: When Finance Meets the Passion for Football

    Fan Tokens: When Finance Meets the Passion for Football

    The Hidden Costs of Convenience: Why Subscription Overspending Is the New Budget Killer

    The Hidden Costs of Convenience: Why Subscription Overspending Is the New Budget Killer

    10 Best UK Trading Platforms in 2025

    10 Best UK Trading Platforms in 2025

    Crypto Trading

    Proprietary Crypto Trading and How It Works

    Should You Get an MBA or Learn on the Job? A Guide for Entrepreneurs

    Should You Get an MBA or Learn on the Job? A Guide for Entrepreneurs

  • Environment
    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

    Choosing the Right Floating Dock Platform for Your Aquaculture Cages

    Choosing the Right Floating Dock Platform for Your Aquaculture Cages

    How to Use UV Light in Your HVAC System for Cleaner Air

    How to Use UV Light in Your HVAC System for Cleaner Air

  • Property
    Importance Of Having A Property Management System For Airbnb Hosts 

    Importance Of Having A Property Management System For Airbnb Hosts 

    Real Estate

    Secrets to Building Wealth through Real Estate Investing

    Real Estate

    Precision Matters: Why a Specialist Real Estate Makes All the Difference

    Guide to purchasing property in Marbella

    Guide to purchasing property in Marbella

    Can Parquet Flooring Work in Modern Homes: A Versatile Choice or Just for Period Properties?

    Can Parquet Flooring Work in Modern Homes: A Versatile Choice or Just for Period Properties?

    7 Key Benefits of Asset Tracking for Property Owners

    7 Key Benefits of Asset Tracking for Property Owners

    company event image

    Luxury vs. Budget: Wedding Venues in the City of London for Every Couple

    Home

    How to Sell Your Chelsea Home for the Best Price

    How Smart Homes Are Changing the Way We Live

    How Smart Homes Are Changing the Way We Live

  • eCommerce
    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?

    Magento Web Development Company: Unlocking the Power of E-Commerce

    Magento Web Development Company: Unlocking the Power of E-Commerce

    eCommerce in 2025: What’s Changing and Why It Matters

    eCommerce in 2025: What’s Changing and Why It Matters

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
485
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

Reshaping Construction

Compact Power, Big Impact: How Mini Excavators Are Reshaping Construction

May 29, 2025
569
Pac-Man Arcade Machine

Pac-Man Arcade Machine: How a Phenomenon Was Born

May 29, 2025
313

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

Reshaping Construction
Business

Compact Power, Big Impact: How Mini Excavators Are Reshaping Construction

May 29, 2025
569
Pac-Man Arcade Machine
Business

Pac-Man Arcade Machine: How a Phenomenon Was Born

May 29, 2025
313
Syna World Hoodies
Business

Level Up Your Look with the Hottest Syna World Hoodies

May 29, 2025
487
Cross Linking in Polymers
Business

Understanding Cross Linking in Polymers for Better Performance

May 29, 2025
371
Machine Maintenance
Business

ISBM Machine Maintenance Tips for Optimal Performance

May 29, 2025
462
French Dairy vs. British Dairy
Business

French Dairy vs. British Dairy: How’s the Difference in Taste and Use?

May 29, 2025
450
Next Post
Solar Cables

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

RECOMMENDED NEWS

Tips to Help Secure Your Work Fleet in 2024

Tips to Help Secure Your Work Fleet in 2024

11 months ago
540
The Role of Identity and KYC in Bitcoin Transactions

The Role of Identity and KYC in Bitcoin Transactions

1 year ago
542
The Ultimate Guide to Buying Tickets for 89 Show Pattaya

The Ultimate Guide to Buying Tickets for 89 Show Pattaya

1 year ago
49
How Tailored Mobile Solutions Can Address Security Concerns in Telecommunications

How Tailored Mobile Solutions Can Address Security Concerns in Telecommunications

3 weeks ago
415

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

AI banking Beauty BMW Spoilers business Christmas construction cyber security data Die Cut Sticker digital Digital Marketing Services Disability Claim ecommerce finance fitness health Hydrogen Water inflation Instagram Story insurance kitchen KYND lifestyle manchester Mercedes Key Replacement Services music News overseas Patch Management Personal Injury Pharmaceutical Industry Prom property Real Estate recruitment Skincare Solicitor sports technology tourism travel UK vehicles yorkshire

Latest news

How to choose the right dentist for your smile makeover

How to choose the right dentist for your smile makeover

May 30, 2025
Top Reasons Why Free VPNs Are Still a Smart Choice in 2025

Top Reasons Why Free VPNs Are Still a Smart Choice in 2025

May 30, 2025
Benefits of a Global Free VPN Extension

Benefits of a Global Free VPN Extension

May 30, 2025
Digital Education

EdTech in the UK: Are We Ready for the Next Phase of Digital Education?

May 29, 2025
Reshaping Construction

Compact Power, Big Impact: How Mini Excavators Are Reshaping Construction

May 29, 2025
Pac-Man Arcade Machine

Pac-Man Arcade Machine: How a Phenomenon Was Born

May 29, 2025
Syna World Hoodies

Level Up Your Look with the Hottest Syna World Hoodies

May 29, 2025
Cross Linking in Polymers

Understanding Cross Linking in Polymers for Better Performance

May 29, 2025
Machine Maintenance

ISBM Machine Maintenance Tips for Optimal Performance

May 29, 2025
French Dairy vs. British Dairy

French Dairy vs. British Dairy: How’s the Difference in Taste and Use?

May 29, 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

How to choose the right dentist for your smile makeover

How to choose the right dentist for your smile makeover

May 30, 2025
Top Reasons Why Free VPNs Are Still a Smart Choice in 2025

Top Reasons Why Free VPNs Are Still a Smart Choice in 2025

May 30, 2025
No Result
View All Result
  • Home
  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce
  • Write for us
  • About
  • Contact