Money isn’t everything according to this year’s National Management Salary Survey which reveals the lowest staff retention rate for 15 years.

Despite increases in the frequency and value of bonus payments, organisations throughout the UK are struggling to hold onto employees, with 45.4 per cent reporting retention problems, according to the survey by the Chartered Management Institute and Remuneration Economics.

Asked why their employees leave, nearly 62 per cent blamed competition from other organisations and 45.4 per cent admitted they offered little in the way of career progression or training. Salaries (43.2 per cent) and job security (40.9 per cent) were also cited as reasons for job changes.

The survey, of 20,989 individuals, reveals that the average total earnings for managers in the UK are £46,054. Benefits packages have also changed with ‘signing on bonuses’ almost doubling over the last year (to 14.1 per cent) and many businesses (51.4 per cent) offering ‘referral payments’ to staff recommending potential recruits.

There is clear evidence in this year’s survey that organisations are finding it difficult to attract staff. 43.4 per cent said they had experienced recruitment difficulties, up from 30.9 per cent last year. Of those companies facing recruitment problems, more than two-thirds (69 per cent) put them down to a lack of candidates with specialised skills, especially those in IT management, engineering and sales.

Mary Chapman, chief executive of the Chartered Management Institute, said: “The reported shortage of managers and staff with relevant skills is a concern because competitive advantage can be threatened if employees lack the ability to carry out their roles.

“Worse still, many organisations admit that they fail to provide adequate development initiatives, even though it is a major reason for leaving. If employers are serious about reversing the current recruitment and retention trend, they must address this issue and develop incentives that suit employees’ needs.”