Did you overpay an employee?

Currently, nearly 80% candidates have more than one job interview in the works, and they are actively comparing offers from different employers much more frequently than in the past.

Why is this happening?

Competitive job market

The job market is more dynamic than ever before. With decreasing unemployment and increasing competition among companies, employers are trying to retain their talented employees at all costs. When they learn that their employee has an offer from another company, they often react by increasing their salary or improving working conditions to keep them.

Financial motivation

For many employees, salary is the main motivating factor. According to surveys, more than 50% of employees say that better financial terms are a reason for changing jobs. If their current employer offers them I will increase the salary, they often consider it a better option than starting over at a new company.

Comfort and safety

Changing jobs means leaving a familiar environment, colleagues, and habits. Many people prefer to stay with a known company where they feel safe and comfortable, even if it means staying under slightly worse conditions. Therefore, if their current employer improves their conditions, they often decide to stay, despite having confirmed their start with a new employer.

How to deal with it?

Stronger employer branding

Focus on Building a strong employer brand. Invest in creating a positive work culture that attracts and retains talent. Employees who are satisfied with their work environment and company culture are less likely to leave for a higher salary. According to a Glassdoor study, up to 75% of job seekers consider a company’s culture before applying for a new job.

Competitive compensation

Regularly review and update wages and benefits to remain competitive. Understand market standards and strive to be one step ahead. Transparent communication about opportunities for salary growth can also reduce the motivation to seek better-paying positions elsewhere. Analysis of a Mercer survey showed that employees for whom financial growth opportunities within the company are communicated are much less likely to seek new employment.

Career development and educational opportunities

Openly communicate about career growth and education opportunities. Employees who see opportunities for personal and professional growth within your company are less likely to leave for short-term financial benefits elsewhere. A LinkedIn Learning study found that 94% of employees would stay longer at a company that invests in their career development.

Open communication

Maintain open communication with your employees. Regular feedback and discussions about satisfaction and expectations can reveal potential problems before they become unresolvable. Employees who feel heard are more loyal to their employer. According to a Gallup survey, companies with high employee engagement have 21 % higher profitability.

Examples of successful employer branding in Slovakia

ESET

ESET is a well-known technology company that emphasizes innovation and talent development. It offers its employees a modern work environment, supports work-life balance, and provides opportunities for education and career growth. Their employer branding is built on a strong company culture and innovative projects that attract top talent.

Sygic

Sygic, a well-known company developing navigation applications, focuses on providing flexible working conditions, including the option of remote work. Their employer branding is supported by an emphasis on innovation, modern technologies, and a strong company culture that encourages creativity and professional growth.

Pixel Federation

Pixel Federation is a gaming company known for its open and creative work environment. They offer their employees a range of benefits, including flexible working hours and various learning opportunities. Their employer branding focuses on fostering teamwork and innovation, making them attractive to young and creative talent.

Conclusion

Losing a candidate due to being outbid by a current or another employer is frustrating, but it can be prevented with strategic steps. Strong employer branding, competitive compensation, career advancement opportunities open communication are key factors that can help retain talented employees. At the personnel agency Trigon Consulting s.r.o., we have extensive experience in setting up HR processes that contribute to the stabilization and long-term motivation of work teams.