Counter-Offers Part One showed that the allure of making a counter offer to an employee, while tempting, is a poor strategy.
Counter-Offers Part Two, will highlight the trap that results when an employee accepts a counter offer.
It is important for employees to understand that there is a direct link between lean companies doing more with less (including fewer employees), the scarcity of talent (unemployment rate for individuals having a bachelor’s degree or higher is only 3.4%) and an employer making a counter-offer to a resigning employee…employers certainly know of this link and hence the trap is set.
You see, when an employee tenders their resignation, the employer approaches it as a simple business decision, analyzing it just as they would when justifying a capital equipment expenditure. They ask questions such as…What are the costs? How much downtime will we experience? How will the resources of the company be impacted? The answer…it is going to cost the employer time, money and resources. Others within the company will have to do the work of the departing employee until a new employee is found. In many cases, important work will not get done. And, when the employer hires the replacement, it will most likely cost the employer more to compensate and train the new employee. All of this leads the employer to make a counter-offer.
A counter-offer from an employer is a cleverly veiled trap. Please read on.
As a departing employee, three reasons not to accept a counter-offer:
The numbers do not lie. Depending on your sources, eighty to ninety percent of the candidates who accept counter-offers either have left, were fired or are attempting to leave again within six to twelve months of accepting the counter-offer. The reasons that drove their initial decision to leave remain.
Where does the money come from? Your next bonus or raise? Or, did it come from your co-worker’s next bonus or raise and will this lead to resentment? Remember, that you had to quit to get this money. And, how did the salary increase happen so quickly? Are you suddenly adding more value or have you just been bought? Reality is, your boss made a business decision in order to buy some time and control the outcome.
Relationships. Face it. Your loyalty, now, will always be questioned. The chance of you being replaced has just increased. Should a downturn in business occur, you will be high on the list for two reasons…your lack of loyalty and the increased cost that it now requires to employ you.
Leaving an employer has emotional components. Couple this with our inherent averseness to change and employees become very susceptible to counter-offers. Remove the emotion, remember why you began to look in the first place and avoid the trap of accepting a counter-offer.