- Staff loyalty has been valued at almost a quarter of the average financial services worker’s salary
EMPLOYEE loyalty for those in the financial service sector has been valued at almost a quarter of the average worker’s annual salary, according to new research.
Research published in the Loyalty Premium Report 2017, by rewards and incentives provider, One4all Rewards, investigated a number of costs involved in staff departures, and revealed the value of loyalty, based on the average financial services worker’s salary of £32,961.54, stands at £7,553.69 per employee – or 23% of the average annual wage.
Sums included were the average notice period, recruitment fees for hiring replacements and the amount of productivity that is lost once notice has been handed in.
The premium of loyalty remains at a steady 23-25% of a workers’ annual wage, as salary bands increase.
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And with the survey of 1,002 UK full or part time workers revealing that more than 1 in 5 (22%) working in financial services have been led to consider getting a new job, too, as a result of a colleague resigning, this will make for worrying reading for many UK business owners.
Declan Byrne, managing director at One4all Rewards commented: “Most financial services employers know that having staff resign is not only inconvenient but also costly. But the combined total of the recruitment costs, productivity losses and more that are associated with this may come as a bit of a shock, and it is no meagre sum.
“To avoid such costs mounting up, it is important that businesses in the financial service sector take employee morale seriously, and actively take steps to ensure staff feel happy, motivated and appreciated. Even something as simple as an annual token of appreciation – such as a bonus – can go a long way.“
The research also revealed the aspects that play the most significant parts in workers’ decisions to stay at a company for the long term (e.g. five years or more).
A nice working environment, long term benefits such as pensions and health insurance and regular pay rises were the top three things likely to have the most significant impact on financial services workers’ sense of loyalty.
Flexible working and good career progression were also key for more than 1 in 3 financial service workers.
One4all Rewards are industry experts in benefits and rewards. Working with over 6,000 businesses of all sizes nationwide, One4all Rewards helps to transform customer and employee relationships through successful rewards and incentive schemes.