You're Probably Losing Half a Million a Year. Here's How to Stop It.

Why Raises Aren't Solving Retention - and What Might Actually Work

Every year, companies increase salaries... and still lose people. The cost of turnover grows. Engagement stays flat. And HR teams are left wondering:

Why isn’t it working?

You can’t outspend disconnection. And you can’t buy loyalty with dollars alone.

When we look deeper, we see that only 16% of employees who leave say ‘pay/benefits’ was the primary reason (Gallup, 2024). That means roughly 84% leave for reasons like culture, engagement, or daily support - the exact areas most salary-focused strategies fail to address.

Raises (4% budget) → National churn (18%) → Only 16% leave for pay → So the raise alone isn’t solving why 84% are leaving.

The Salary Arms Race Isn't Working

The national average salary increase is around 4% (Payscale, 2024). And yet, retention challenges persist.

Let’s make it real:

  • You run a company with 100 employees.
  • You hire 20 new team members this year.
  • But 1 in 3 new hires leaves within their first 90 days (LinkedIn/SHRM, 2024).

That’s 6-7 early exits.

The average cost to replace an employee is about 33% of their salary (Work Institute, 2023). For a $50,000 role, that’s $16,500 per exit.

In just one year: $108,900 lost

Over five years: $544,500 burned

That’s not a budget issue. That’s a care issue.

Raises don’t fix what people are actually missing. Because fulfillment, belonging, and real-life support don’t come from a paycheck alone.

What If You Changed the Strategy?

What if companies slowed the wage wars - and won the loyalty wars instead?

What if retention wasn’t about what you promise someday, but what you provide today?

That’s what Fufild is designed to do.

Groceries. Therapy. Learning tools. Streaming. Delivered, available now. Chosen by the employee. Paid for by the company.

Raises help people survive. But this gift of choice through Fufild helps them live. And that makes the whole difference.

The Smart Way to Invest

It’s not about cutting compensation. It’s about shifting it.

Instead of funneling everything into salary, what if a portion went into immediate, personalized support that:

  • Reduces stress
  • Sparks joy
  • Fuels growth
  • Builds trust

Fufild does exactly that. And when you split a raise 50/50 between salary and fulfillment, the value multiplies.

This Is the Future of Compensation

Today’s employees don’t just want more money. They want:

  • Time back
  • Options that matter
  • Support that shows up when life happens
  • Options that might life better today

They want care that’s part of the deal, not just a nice-to-have.

This is not a "perk." Let's start calling it what it is: A necessary part of total compensation.

Companies are already paying for this, just in the wrong places:

  • Gift cards no one uses
  • Company swag no one remembers
  • Raises that don’t stick
  • Turnover that wipes it all out

The Now Gap Is Where Loyalty Is Lost

The Now Gap isn’t just the 16 hours between shifts or time off the clock. It refers to the care and impact that traditional benefits, perks, and rewards fail to provide in the present moment. It’s the daily gap in support, fulfillment, and relief that employees actually feel - the chance to make life better today, not someday.

That’s where Fufild belongs.

Not as a perk. Not as a bonus. But as a pillar of compensation that keeps people, and helps them thrive.

Let’s close the gap. Let’s reimagine care. Let’s make compensation work - for everyone.

Check out Fufild, the premier solution to closing the Now Gap, reinforcing a culture that truly values its team, and turning everyday support into a powerful driver of loyalty, performance, and retention.

www.fufild.com

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