"With almost half of all employers reporting they are struggling to fill skilled vacancies, staff retention is a key issue and simply providing salary increases is not the answer to retain staff," Edwards says.

The survey, released this month, revealed that 80 per cent of employ­ees feel that challenging and satisfying work is a very important factor when considering staying with their employer. Those surveyed also said a bet­ter work life balance and improved leadership and management would in­fluence them to stay with their employer. In comparison, an increased salary was rated as an important motivator by a much lower number of respon­dents, with only 57 per cent rating it as a major influence.

Increased career development opportunities and increased learn­ing and development opportuni­ties were also listed as influencing factors - above an increase in salary.

"Salary increases are generally not the solution to staff turnover," says Edwards. "While staff will leave if they are not paid a fair wage, in­creasing salary alone is not the an­swer to improving staff retention and can result in a competitive wage spi­ral which is not sustainable."

Emphasising the importance of improving employee engagement to assist with staff retention, Edwards warns: "Not only are disengaged employees twice as likely to leave their employer as engaged employ­ees, but they are also more prone to absenteeism and significantly more likely to have dissatisfied clients."

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