How to prevent salary 'springboarders' from bouncing away

In the current competitive job market, many businesses are finding themselves in a predicament. They invest in hiring and training new employees, only to see them leave for larger companies where they can leverage their newly acquired skills and experience for higher salaries.

This phenomenon, often referred to as ‘salary springboarding’, can be particularly challenging for smaller companies or those operating in niche sectors.

The primary reason for this trend is the allure of higher salaries and better benefits offered by larger companies. Smaller businesses often struggle to match these offerings due to budget constraints.

Additionally, larger companies often provide more opportunities for career advancement, making them an attractive option for ambitious individuals looking to climb the corporate ladder.

How can smaller companies combat this?

1. Rigorous Recruitment:

During the hiring process, it’s crucial to assess not only the candidate’s skills and qualifications but also their long-term career goals and commitment to your company. Look for candidates who align with your company’s values and culture, and who are interested in growing with your business.

2. Observant Onboarding

A well-structured onboarding process can help new hires feel valued and integrated into the company culture from the start. This can foster a sense of belonging and loyalty, reducing the likelihood of them seeking opportunities elsewhere.

3. Generous Benefits

While smaller companies may not be able to compete with larger ones in terms of salary, they can offer other attractive benefits. These could include flexible working hours, remote work options, professional development opportunities, or a strong company culture.

4. Employee Engagement:

Regularly engage with your employees to understand their needs and aspirations. This can help you identify potential issues early and take proactive steps to address them.

5. Career Development Opportunities

Provide clear pathways for career advancement within your company. This could involve offering training and development programs, mentoring, or opportunities for internal promotions.

6. Competitive Compensation

Regularly review your compensation packages to ensure they are competitive within your industry. While you may not be able to match the salaries offered by larger companies, ensuring your employees feel they are fairly compensated can go a long way in retaining them.

While salary springboarding is a challenge, it’s not insurmountable. By focusing on employee engagement, offering competitive benefits, and providing opportunities for career advancement, smaller companies can retain their talent and prevent their businesses from being used as a springboard.

HRD Connect Curators of the New Business Landscape. HRD Connect produces industry-recognized content for senior HR leaders. Through articles, case studies, Q&As, podcasts, events, and more, we offer truly progressive and cutting-edge insights designed to help people leaders address core HR challenges and add greater value to their business.

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