Fed: Few business see better wages as way to retain staff

AAP General News (Australia)
08-24-2007
Fed: Few business see better wages as way to retain staff

EDS: Embargoed to 0001 AEST Friday, Aug 24



By Colin Brinsden

CANBERRA, Aug 24 AAP - It's a classic case of having your cake and eating it.

Businesses say having the best workers gives them the edge over their competitors,
but they aren't necessarily prepared to pay for it, a survey released today has found.

Research by business consultant Grant Thornton International found that only two per
cent of the 250 companies surveyed across Australia put any value in having a remuneration
strategy in place to attract talented workers.

Just 30 per cent of business owners have pay and reward schemes in place to retain
staff, while only 19 per cent believe remuneration strategies maintain a positive attitude
among staff.

However, when asked what is the most significant factor that has made their business
better than their competitors, having the best people on staff ranked the highest at 18
per cent.

This was followed by offering a world class service at 14 per cent and the ability
to adapt and respond to market needs at 13 per cent.

"Whilst staff retention is seen by business owners as essential, it is surprising to
see that so few businesses use remuneration strategies for this purpose, despite the obvious
impact on the bottom-line," Tony Markwell, National Head of Private Business Services,
Grant Thornton, said.

"What is even more astounding is that only two per cent of business owners recognise
that a competitive remuneration package is a key driver in attracting high calibre staff."

He said in the face of the current skills shortage caused by an extremely tight labor
market, business owners should be doing more to attract and keep the best people.

"Smart remuneration strategies must be a key part of this."

Other factors that are seen putting a company ahead of the rest are the firm's product
at nine per cent, its brand name at seven per cent and customer loyalty at four per cent.

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