Candidate reactions are varied and many companies have tried to retain the people by offering counter offers.
Our experience and research indicates that often counter offers from employers are vague attempts to keep the commitment and loyalty of staff. In fact, our surveys say that over 72% of staff who are counter offered by their employer leave within the next twelve months as the original reasons for leaving still exist. For example their salary may have increased but the culture, conditions and politics remain the same.
When staff announce their departure, often employers take it personally and make promises that the environment will improve and try to offer more money or greater salary benefits.
At Mondo Search we have observed a number of situations that occur after a counter offer has been made:
- Staff generally will still leave within twelve months, after being counter offered, as staff generally choose to leave for other reasons, apart from salary and conditions.
- Candidates currently at our interviews are generally not concerned about salary package, rather the type of company, the culture and the career opportunities.
- Candidates will move sideways in title or position, if the culture, industry and or reputation of the company are held in high regard.
- Candidates are now also more interested in the lifestyle factors around the role, including distance to work, the company’s attitude to working from home, paternity and maternity leave and opportunity for company shares and equity.
- A lack of trust is embedded at the time of the counter offer, as people wonder why they have been offered better salary/conditions or job opportunity only after they have threatened to leave. Why was this only addressed after the moment that they decided to leave? Is the company lacking strategic initiative and are they purely short term thinkers and reactionary?
So as an employer, when considering offering a counter offer to a staff member, to try and keep them, consider that you are likely to be facing the same situation, within twelve months. Look at your current team, keep close to the ones that you want to keep on your team and they will be less tempted to make a career change. The grass is not always greener on the other side!
Once someone decides to leave they eventually will leave. So when considering a counter offer just remember that it may be very counter productive.
Reach out if you ever need help finding or keeping talent. Our mission is finding good people for good.
Contact us at simone@mondosearch.com.au