Job Counter Offers – Good Or Bad?
Job counter offers – are they worthwhile?
Dilemma….. So one of your most valued employees has handed in their notice, what do you do?
If you are keen to keep them you may be tempted to submit a counter offer, basically increasing their salary in hope they change their minds and stay. This tactic works for the short term, but 90% of candidates who accept a counter off will leave within 24 months anyway.
The reason for this?
Generally down to job satisfaction and progression, the reason they were looking for a new job in the first place may be driven primarily by money but secondary factors such as job satisfaction, change in personal circumstances, progression and career change are other factors.
The most important aspect to ascertain is WHY, why did they decide to go looking for a new job?
Outlined below are reasons to consider and not to consider counter offering.
Consider a counter offer if:
- The reason for leaving is financial only and the employee is worth the difference, although generally worth checking if any other changes will help to keep them happy such as benefits.
- The reason is due to progression – can you match their expectations?
Do Not counter offering if:
- The reason is personal circumstances – this will lead to a high probability the employee will continue to look at leaving.
- Change of sector or industry, the employee will continue to look for other opportunities
- Job satisfaction – although simple changes to the environment or working hours etc, may make this a reasonable reason to make an offer.
There is no straight forward answer to counter offers, but in our experience candidates who accept counter offers generally have one eye on the door in the future.
Our advice generally would be carefully weigh up the reasons your employee is looking to leave, some reasons are easily fixed and can keep that person with you for years to come, however some reasons will never be overcome, they may be happy in the short term, but if there are underlying reasons they will always consider other opportunities.