New hires paid more than existing employees in the same role
Research released by totaljobs has revealed the true cost of remaining loyal to your company, with UK employers admitting to paying new hires more than existing employees in the same role – adding an average £1,581 to the salaries of new recruits.
The power of negotiation?
The survey revealed a further split when it comes to negotiating a higher salary, with men who negotiated a higher salary securing 30% more on average, compared to women when joining a new company. This equates to a further £3,135 increase negotiated on to men’s salaries when switching companies, compared to £2,410 for women.
With 45% of employers admitting to paying those new to the job more than existing employees in the same role, the power of negotiation in the workplace is evident. Totaljobs found that a third (34%) of British bosses who pay new employees more, do so because they negotiated a better salary as part of their new contract. One quarter (24%) note that a contributing factor is the pressure to fill a role quickly. In addition, 28% also offered a higher salary to give them the edge over a competitor to secure talent.
Should I stay, or should I go?
The research also revealed that salary is not the most important factor for many workers. In fact, two thirds (64%) of employees surveyed would choose to stay at a company they enjoy working for, rather than moving for a higher salary. This figure demonstrates that in many cases, a pay rise is not enough to persuade workers to jump ship and highlights the need to foster a positive company culture to retain loyalty. It was job security that topped the list of factors keeping people at their current company, cited by 49% of employees surveyed, followed by salary, (40%) interesting work (37%), and the option of flexible working (36%).
Furthermore, 59% of workers admit they have never moved jobs to boost their income, and three quarters (74%) say they did not negotiate a higher pay package than advertised when they joined their existing role. Employers can take heed from this and therefore focus their attention on a well-rounded recruitment and retention strategy which promotes culture, development and purpose, as well as the offering of competitive salaries.
Pushing for a pay rise?
When it comes to asking for a pay rise in their current role, men are more confident in requesting a higher salary. The research reveals that 44% of men have asked employers for a pay rise, compared with just 36% of women. Totaljobs also found that one in five (22%) UK workers have had their request for a pay rise rejected at some point during their current or previous job. Figures show that whilst men are 19% more likely to ask for a rise, they are also more likely than women to have their request denied (24% vs. 20%).
Martin Talbot, Group Marketing Director at totaljobs, said: “There is money to be made for those willing to make the jump from their current employer, particularly when armed with the confidence to negotiate a higher salary.
“With the UK reaching record levels of employment, UK businesses need to offer competitive salaries to secure the best talent. Through industry benchmarking, and securing approval for budget wiggle-room, UK bosses can be confident of hiring and keeping hold of the people that their business needs to grow. Failure to offer loyal employees their worth, could well lead to a greater cost when it comes to replacing them.
“That said, employers must remember that salary isn’t everything – as two thirds of workers remain loyal to a company they enjoy working for, regardless of the potential of a higher wage elsewhere. Fostering a positive company culture and giving employees a sense of purpose and responsibility can often be priceless.”
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