Let’s Talk Counter Offers . . .

Counter-offers are used to try and retain an employee leaving a business when they have already handed in their notice, signalling their decision to leave. 

We know that it seems biased that a recruitment company recommends you not to issue a counter-offer or for you to accept one, but we’ve got the numbers below to back us up!

• 80% of candidates who accept a counter-offer from their current employer end up leaving within 6 month’s;
• Only 50% of employees who accept counter-offers are still with their employer one year later; 
• 75% of employees who accept counter-offers experience increased stress and dissatisfaction at work; and
• 82% of employees who accept a counter-offer regret their decision within 6 months – usually when the novelty of an increased salary and new responsibilities wear off.

Source: https://gitnux.org/accepting-a-counter-offer-statistics/

The numbers speak for themselves, if an employee has handed in their notice, a counter-offer is only going to delay them leaving. As well as negatively impacting them whilst in the position.   

It’s a tough thing for anyone to do, handing in a resignation, so if it has got to this point, trying to change their mind with a counter-offer will most likely be only a temporary fix.

Usually, a person has multiple reasons why they want to leave their current place of work and increasing their salary or making knee-jerk adjustments, isn’t enough for them to stay for the long term. It’s pro-longing the pain for everyone.   

Like a plaster, its best just to rip it off and start the recruitment process as early as you can so you can limit the disruption to your business and customers.

We would always encourage conducting an exit interview to understand an employee’s reasons for leaving. This may provide invaluable information to see if there is anything you can change or adapt within the role now available and ensuring employee retention and satisfaction in your business for the future.