Research released today 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.