Counter offers seem to be more common in today’s current climate. Employers have found they would rather keep their current talent than go through the tough process of hiring someone new. This is particularly evident in the more niche markets where the pool of experienced, talented candidates is even smaller. Companies are weighing the cost vs benefits and finding it saves them money by increasing salary rather than going through the expense of searching, interviewing, and onboarding a new employee.
Statistics say that counteroffers are unsuccessful long term for both the employee and employer. According to Forbes, 50-80% of employees who accept counteroffers end up leaving the company within six months due to similar issues they faced when taking the offer. Additionally, 29% of employers offer counteroffers as part of their retention strategies.
Companies need to be aware when interviewing that this may be a very real possibility that the candidate’s current company may offer them more money. They need to differentiate themselves outside of just salary-culture and offer new hires enough other benefits that counteroffers will not be accepted.
- Smaller territory
- Advancement possibilities
- Work life balance
- Company culture
- Location flexibility (remote)
We at Morris Bixby Group try and qualify the candidate to make sure their main reason for leaving is not just salary, and if it is, urge them to speak to the company first to see if that can be addressed rather than going through the interview process to have it end in counteroffer acceptance. Getting to know the candidate well and their reasons for wanting a change is key.
From the candidate side there are things to consider when it comes to counteroffers:
- Why did you decide to seek a new position?
- Is the pay you are currently receiving competitive in the market?
- Are your long-term goals for employment able to be met with just a salary increase?
- Company advancement/education/challenges
- Company climate/job satisfaction
- Job stability
- Are you willing to compromise on salary?
- Will your current company view you in a negative light after you indicate you are searching for new employment?
- Does your current company appreciate you?
Counteroffers can be involved when hiring and seeking new employment. Having expectations set and communicating them on both sides is key to keep things from getting messy in the process.
Make sure you are aware of counteroffers so that you can be prepared. Morris Bixby Group can help you. Learn more today!