Should I stay or should I go?
What is a counter offer?
A counter officer leaves a candidate with the dilemma of whether to stay with their current employer or move on to greener pastures. These counter offers are when a candidate’s existing employer responds to their resignation by presenting them with seemingly better terms than their current position in the company. This typically comes in 3 forms: a pay rise, promotion and benefits. Essentially due to the idea that its easy to forget existing issues at work when offered more money or the title you’ve always wanted.
Why might a company make a counter offer?
Logically it’s because they don’t want to lose a treasured member of staff especially in today’s climate where severe candidate shortages mean it’s a candidate’s market rather than a companies. They want to save themselves from the costs incurred from recruitment and having to onboard a new employee as it is estimated that training new employees can cost as much as 40% of their annual salary. So it should be no surprise that nearly 50% of employees who hand in their resignation receive counter offers from their employers. Employers also want to minimise delays as an unfilled position causes delays to projects and production. Another rarely considered reason for counter offers is pride: a valued employee leaving the company for another, possibly a competitor, is bound to bruise the ego. But although this appears to be a short term fix for prevention on strains on the company and its other workers the data actually suggests that it will not help in the long run, with almost all candidates who accept counter offers will leave the company within 18 months (the figures sit at 80% of candidates leaving within 6 months and around 90% within 12 months).
Why does the candidate want to move in the first place?
According to a survey undertaken at a recruitment industry event recently the main reasons why candidates wish to move are as follows:
- Geographical problems / Travel issues
- Lack of career progression / No development and training
- Company culture / Issues with management
- Money
Should I stay or should I go?
It is important to think objectively about the long term when considering whether to accept a counter offer and consider the following factors:
- Why were you considering leaving in the first place?
- Will the promise of more money solve the pre-existing issues?
- What will be the effect of your resignation on your employer?
Your resignation will mean at work your managers will see huge red arrows around your head saying ‘unhappy’, the trust has been broken, employers may feel you have be disloyal, will this make for a pleasant working environment?
Why has the counter offer been issued in the first place?
Has it been issued because you’re valued as an employee or because it is cheaper to retain you as an employee than to onboard and train a new one?
What are the down sides of counter offers?
There are 3 main downsides to counter offers, they are:
- Diminishing short-term gain
- The reason candidates were originally looking for new jobs seeps back in and they become frustrated
- Unkept promises
- Companies may be unable to execute promises made during the counter offer
- Hostility
Counter offers can result in hostility from colleagues despite the level of discretion involved. However, companies may learn the error of its mays after a resignation, especially after the challenges of the last couple of years and may strive to improve.
