Employees are paying up to hold onto good employees.
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As the job market heats up, employers are growing more and more worried about holding on to their best employees, a new study finds.
Research from PayScale Inc., a provider of cloud compensation data and software, discovered an increasing concern across businesses of all sizes about their ability to retain top-performing employees as a result of the increasingly competitive talent market. The results suggest that regardless of size and industry, talent retention has become a top priority for business leaders.
Specifically, retention was listed as a top business concern by nearly 60 percent of the companies surveyed, up from just 28 percent in 2009.
"While many of the economic indicators are encouraging, we also found companies are increasingly worried about retaining their top talent," said Tim Low, PayScale's vice president of marketing.
Contributing to the distress over holding on to quality workers is the increasingly improving job market. The study found that more businesses plan to hire in 2014 than in previous years, with 54 percent of companies expecting to expand their workforce this year.
One tactic employers plan to use to hold on to their top talent is to dish out more money in 2014. Nearly 90 percent of those surveyed said their organization will give pay raises this year.
"The results here suggest that the labor market is finally improving," said Peter Cappelli, a professor of management and director of the Center for Human Resources at the University of Pennsylvania's Wharton School. "Retention and appropriate pay levels are, therefore, going to become hot topics for most all employers."
The study was based on surveys of more than 4,700 human resources practitioners and business line and executive managers from small, medium and large companies in the United States, Canada, Australia, India, New Zealand, South Africa, the United Arab Emirates and the United Kingdom.
Originally published on Business News Daily.