'From Both Sides of the Desk'
ISSUE NO 12 - AUGUST 2006
The Facts about 'Counter Offers' ... and how to handle an employee who resigns
The incidents of people who accept ‘counter offers’ from their employers, following a job offer from a new company - has become one of the most erroneous trends in the employment process - and research indicates that an increasing number of people who make the ‘stay put’ decision are becoming dissatisfied with it.
Some years ago our company took out statistics which found that of the people who accepted counter offers from their present employers and stayed, 82% were back in the job market, or had changed jobs within a twelve month period.
Of Interest to the Employer
Companies recognise the cost of replacing and retraining employees. They also recognise there is often a scarcity of good staff in all areas of industry & commerce and the time delay to the business of replacing individuals is not only costly, but disruptive.
Changing jobs is a major decision, with a number of causes. Employees may be upset with the conditions of pay, the fact that they have missed out on a particular promotion a ‘spur of the moment’ disagreement or personality clash with their immediate superior, or a general disillusionment with the performance of the organisation and a belief that there is nowhere for them to go in the company.
It may be a situation where the person just wanted to clarify the value of their position, and by getting an external job offer felt they had proved their dollar worth in the market place and their so called true value to their employer.
All these reasons can motivate a person to look for a new job, although generally speaking it is a minor action or disruption - the final straw - which induces them to become active or to be receptive to an approach from a ‘head-hunter’.
People also accept an employer’s counter offer for a number of reasons. They may feel it is better to stay with the ‘devil they know’ than ‘the devil they don’t know’. Sometimes they were really only wanting to prove a point with the employer in solving their minor grievances.
Our advice to an employer of a person who has offered their resignation to accept another role - if their reasons for leaving are genuine - it is generally in the best interest of both parties that the person be given the chance to prove their merits with the prospective employer. Wish them well, agree to part amicability, and accept their resignation graciously.
In essence it is a mistake to ‘counter offer’ a person and talk them into staying with an organisation when they have received a good offer to be employed elsewhere. There are exceptions to this rule, but they are indeed very few and far between.
Of Interest to the Employee
Our research found that those who accepted counter offers and were back in the market place or had changed jobs within the 12 months, did so due to one or more of the following factors:
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They recognised that what was promised by their employer (in order to retain them) was never really fulfilled.
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It was viewed as a career insult. If they were worth a salary increase or promotion after having resigned - why was it not forthcoming before.
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If to get a salary increase you have to resign, what is going to happen in the future? You can only use the threat of resignation once.
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Companies which give salary increases often expect increased performance and productivity which sometimes the person was not capable of delivering. The person had compromised themself and, could have problems when their next salary review came around.
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The acceptance of the counter offer really amounted to a sideways move. It had really been a way of keeping the person on side or in the team.
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Once a person uses the counter offer approach they are generally never looked at in the same way by the company again. Of course this is not true for all situations and companies, but generally speaking this view holds.
A number of people who have been on the market for the past 12 months had been just ‘fishing’ to see what they were really worth. This is not a sensible way to determine one’s worth in the market place. The employment market in Australia is small, a person’s reputation is made or broken quickly, and a foolishly handled job application or a rejection of an offer can sometimes stand poorly in a person’s career, and can certainly backfire against the individual when they are looking for a job in the future.
In looking at those 82% of people who were back in the market place within 12 months of being offered a job, we found that in most situations the person should have accepted the role that was offered to them, and made an erroneous miscalculation in their career by staying with their current employer.
Our advice to an employee who has accepted a position that is a genuine career move or an improvement in employment conditions should not allow themselves to be talked into a counter offer. Once you have accepted a position and made the decision to leave …… don’t be seen as indecisive … leave!
- A Recruitment Thought for the Month -
'Knowledge and skills are important assets, but are honed to a far better use by attitude'
Roger W Hilton
This newsletter is produced as a result of positive feedback from our book - 'From Both Sides of the Desk' and as a value added service to our clients, We are delighted to share with you, excerpts and tips from the book in this regular newsletter. From Both Sides of the Desk will significantly enhance.... read more>>>
Roger W Hilton
Principal
Hilton Consulting Group P/L
Ph: (02) 9957 1513
Fax: (02) 9954 4528
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