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B Resolute – Counteroffers… is it worth the short term fix?

Administration Blog, News

If most candidates who accept a counteroffer end up leaving within six months, why do companies make so many counteroffers? What do they gain?

Does your company make last ditch efforts to keep staff after they’ve resigned?

Offering a pay rise to keep a staff member that has mentally checked-out and offered their resignation is a bad idea. Not only are you prolonging the inevitable, you’re setting a dangerous precedent. By rewarding a staff member who is willing to resign and leave, what message are you sending to the rest of the team? Will they see resignation as a means to a pay rise? Will they notice that you’re already looking for a replacement? Is the employee so valuable that a few months more will make the difference?

“Brian” was with his past employer for five years when he offered his resignation. His employer panicked and offered him $20,000 more salary to stay. Brian accepted. The job was the same. The same frustrations and problems remained. All Brian’s employer had done was given Brian next year’s pay rise early and ignored the problem. Brian remained unmotivated and disgruntled. His employer feared he was the only person who could do that job and didn’t want him working for a competitor, walking away with five years worth of intellectual property and client relationships. Three months later, Brian was working for a competitor and his former employer had to start the recruitment process from scratch.

People leave jobs because they have outgrown their current role, or have become dissatisfied with their work circumstances. On a day to day basis they lose productivity and lower the moral of the team around them. Rather than counter-offer an employee who decides to leave, wouldn’t it make more sense to get someone new? The new employee will be enthusiastic and conscientious, will apply themselves to get up to speed fast and can improve moral and offer new ideas to the team.

If you’re thinking about making a counteroffer, contact the B Series to discuss your options first.

Written by

James Humphries

James is a Senior Executive Recruitment Consultant with Barclay Recruitment part of the B Series Group of Recruitment Consultancies. For the past 10 years James has been a specialist recruitment and search consultant working in Engineering Consulting, Design and Construct, EPCM and Resources production markets for Water, Power, Oil & Gas and Building Services industries across Australia and the region. James attended the University of Queensland and has an Arts and Journalism Degree.