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The competitiveness in the current world of recruitment is significant, with many hiring managers resorting to counteroffers to help secure in-demand talent.
Many employers are struggling to keep staff who are searching for other opportunities. To help prevent skilled workers from leaving, 50 per cent of organisations will put forward counteroffers depending on the employee, according to research from Hays.
“In today’s market, employers are pulling out all the stops to retain valued and productive staff,” said Matthew Dickason, Hays Asia-Pacific chief executive.
“Many use counteroffers as a tool to fight for highly regarded employees. This can make it difficult for hiring managers to secure top candidates, especially when a counteroffer is made that’s hard to refuse.”
This can be an effective way to hold onto top talent. With candidates currently having their pick of the lot when it comes to choosing an employer, knowing when to up the ante can be a great way to keep ahead.
Mr Dickason continued: “Be strategic to ensure your offer is not only competitive but compelling. Work closely with your recruiter to understand why your preferred candidate is job searching. What motivates them? What are their short and long-term career goals? What benefits would they value? What are their salary expectations?
“Ensure your offer ticks all these boxes, leaving the candidate with no reason to accept a potential counteroffer. For instance, if a candidate’s current employer isn’t offering career progression opportunities, demonstrate a clear path for growth and development in your team.”
However, counteroffers should not be relied on. Employers should be looking to create an environment where employees want to stay, and if counteroffers are the only thing keeping staff around, the problem may have deeper roots.
“While counteroffers do work sometimes, don’t rely on them. At best, they are a stopgap solution,” explained Mr Dickason.
“Instead, understand the drivers of staff turnover in your organisation and fix the underlying issues to minimise the risk of employees looking elsewhere.
“Perhaps fostering a culture of continuous upskilling, training your managers and crafting clear promotional pathways, for example, could improve job satisfaction and reduce the risk of employees leaving.”
On the other hand, there are those on the receiving end of counteroffers. If you’re an employee leaving an organisation, weighing up whether the counteroffer is worth it should be top of mind. Remember why you wanted to leave. If it was for cultural issues, no amount of money would change that.
“People leave jobs for a range of reasons, from a lack of new challenges to career advancement and a desire to feel valued. It’s rarely a decision made on a whim,” Mr Dickason said.
“After careful contemplation, if you decided that, for whatever reason, you weren’t happy in your current role, why would a pay rise, new job title or additional benefits be anything other than a superficial tactic to convince you to stay?
“Remember, your motivation to change jobs must have been genuine since you not only looked for a new job but applied, interviewed and accepted one. These are not the actions of a satisfied employee.”
Ensuring that employers will address the reasons for you wanting to leave is paramount; otherwise, you’re back at square one.
“Counteroffers are only successful long term when an employer actively addresses the reasons that drove you to accept another job. Rather than offering a hollow new job title or a few additional benefits, for example, they must make real change that motivates, engages and develops your career.”
Mr Dickason concluded: “If you’re considering a counteroffer, make sure that genuine action will be taken to rectify the issues that drove you into the jobs market. Every situation is unique, so make sure the counteroffer is worth staying for. If not, you’ll find yourself job searching again soon.”
RELATED TERMS
Attrition is defined as the process through which workers leave a company for whatever cause (voluntarily or involuntarily), such as retirement, termination, death, or resignation.
The practice of actively seeking, locating, and employing people for a certain position or career in a corporation is known as recruitment.
Jack Campbell
Jack is the editor at HR Leader.
