Business

Businesses face employee retention challenge for 2018

Retaining its best staff is a problem for many Irish companies going into the new year, according to a survey
Retaining its best staff is a problem for many Irish companies going into the new year, according to a survey Retaining its best staff is a problem for many Irish companies going into the new year, according to a survey

BUSINESSES across Ireland face a continued challenge to retain their key staff, particularly high-performers who are often the first to move, according to an island-wide survey.

In the study of 76 organisations employing 110,616 employees, 36 per cent of respondents said their employee turnover had increased in 2017, while 27 per cent of respondents forecast their employee turnover to increase in 2018.

The survey of HR directors, chief executives and business leaders found that employee turnover was on average 13.1 per cent for organisations operating in Northern Ireland and 8.3 per cent for those in the Republic, although some employers reported turnover levels of up to 30 per cent.

Patrick Robertson, managing director of recruitment firm Performance Reward Consulting, which conducted the survey, said: “As the economy on both sides of the border has improved, Irish employers now face a real challenge to retain staff, particularly their high performing and high potential employees.”

For 2018, the survey found that just under 94 per cent of employers on both sides of the border are planning a pay increase.

While the average 2018 pay increases within the survey are forecast at 2.5 per cent in the Republic and 3 per cent in the north, some employers are reporting pay increases above 8 per cent for specific employees or employee groups.

Mr Robertson added: “From our survey it is clear employee retention is one of the most critical issues Irish businesses are facing for 2018.

"Almost half (46 per cent) of responding organisations reported that they are taking steps to increase their employee retention for 2018.

"In many cases they are implementing new pay structures and career paths, employee recognition schemes and focusing on their incentives and benefits to try to retain staff.”