Source: Jobsdb

To most companies, employees are the crucial asset. Yet they are also the biggest cost. Employees retention and lay-off are always the biggest struggle faced by all scale of companies. The consideration is whether salary increase is the only thing that makes employees loyal to the company. The short answer is no.

Salary = appreciation to employees
Salary is undoubtedly the most direct way to show appreciation to employees’ performance. After devoting to the company, they probably expect some forms of affirmation to their effort. While there are some other welfares, salary, particularly salary hike, is the most fundamental form of appreciation that employees expect. According to Forbes, almost 80% of employees reported that ‘a lack of appreciation from company’ was the main reason to leave the position.

Although most expenses go to employment, employees are the greatest asset of company after all. It is worth investing in employee retention by providing different forms of welfare and salary increase. The new ideology in human resources is that employees are more than workers, they are the customers and business partners to companies.