In today’s current recruitment market, counter offers are more frequent than ever! In some ways, this is great way for your company to show you how much you mean to them and are valued and in others can mean dealing with conflict and being thrown into a world of turmoil about “the right thing to do”
Here at OneMD, we have seen, first hand, these situations arise and while each scenario is unique to each individual, we have a general guide to assist you in navigating these situations and ultimately making the right decision for you!
Reasons for the Counter offer from the employers perspective:
- It can be expensive to replace an employee (e.g. recruitment costs, loss of productivity from the team, loss of working hours, training costs and advertising fees). It is often easier and more cost effective to increase the salary for the employee who has resigned
- Uncertainty of the quality of a replacement ( it’s always risky to take on someone new and although interviewing processes are used to qualify a new person, there’s no guarantee of their abilities/suitability until they actually start)
They may have known that the employee was worth more to the company for a long time, but felt they were able to maintain them within the business under the current conditions – only after a resignation is made does the company decide to act upon this
- One leaver can sometimes lead to more (e.g. others in the team realise what is available to them too, the leaver is a prominent figure in the team and the dynamic would be affected)
We estimate that at least 90% of candidates who accept a counter offer will leave their current employers within 6 months and 94% within 18 months
What to consider when a counter offer is offered:
- What were your original reasons when applying for the other job?
- How high was your current level of job satisfaction? You must have had motivation to move.
- Will the counter offer negate these motivations?
- Why did it take your resignation for your employer to offer an improved salary and benefits package?
- Will you need to threaten resignation every time you’re due a raise
Counter offers can be verbal promises; there’s nothing to stop your current employer from changing their mind as soon as you formally reject your external offer. This happens more frequently than you may think.
Ultimately counter offers can be great but also be counterproductive. This has been brought to light more and more by Covid and how employees have either been treated by their employers or by the lack of progression available to them
Download a copy of this guide here: OneMD Counter Offer Guide