How to respond to a Counter offer.
Retaining good quality staff is a problem for many employers, and statistics prove 50% of employers are likely to respond to an employee’s resignation announcement with a counter offer.
There are employees who will hope that they will be approached with a counter offer, for others it will be the last thing they want to be presented with. Either way you have to be open minded about what exactly you are seeking and why you are in the situation you are in! A negotiation process can prove tricky, but always keep your goals and level of professionalism high up in the agenda throughout.
For an employee the decision to accept a counter offer can have a lasting impact on your career.
There are a number of factors for the employee to consider:
- Will accepting the counter offer address your initial reasons for job searching in the first place?
- Is the counter offer in your best interest? Remember it’s cheaper to offer a pay rise or promotion than it is to hire and train new staff members.
- Will relationships with management be impacted in the future now they know you have been seeking an exit? Employer may view this as less trustworthy.
- Make the decision you think is best in line with your goals, and not something you might regret in 3 month’s time.
- If you have gone through this process with a recruiter, that recruiter may not represent you again as trust will be lost
It’s a well-known fact counter offers do not work out in the long term! Some interesting statistics employees and employers should know on counter offers:
- 60% of UK based employees who accept a counter offer end up leaving within six months.
- 80% of candidates who accept a counter offer will end up leaving within 18 months!
- 9 out of 10 candidates who accept a counter offer leave their current employer within the 12 month mark!
- 50% of employees that resign will be counter offered by current employer!
- 50% of employees who accept a counter offer returned to the job market within a 60 days!
As yourself this question:
Where you declined this pay rise before you proceed to explore job market?
If so, do you want to stay in a company that doesn’t reward its employees until they hand in their notice? This is a huge factor in losing staff, employers shouldn’t want until this point to retain the staff member as the employee has already been exploring the market place and is unsettled In current position.
While financial rewards are attractive:
Research has shown that employees are most likely to look for a new job opportunity that can offer them career progression. Accepting a counter offer purely for financial benefits doesn’t mean that you won’t still feel dissatisfied in your role in months to come.
It’s only a temporary fix!
How to deal with a counter offer:
If the reason you are here is financially driven, you should know your market worth. We would advise contacting recruiters in your field to benchmark your salary range against the marketplace. A specialised recruiter (as Daly Recruitment are in hospitality) will have access to this information and be able to guide you. It’s always a good way to introduce yourself to a recruiter who specialises in your sector, as you never know what potential opportunities may arise in the future.
Remain professional at all times:
Don’t use this an opportunity to vent your anger at management to cover ground on previous requests or treatment. This will cause the deal to break down and there will be no winners!
Always go into negotiations professionally, with a positive and good attitude. Remain on good terms at all times. Be careful you never know when paths may cross again!
Know your team structure:
If you are a key member of staff and only one who knows how to complete your daily tasks, you are in a strong position. If you are part of a strong team and others have their eye on your role. It’s not advised to negotiate a much higher salary as your employer may accept your resignation and offer promotion internally! Your decision will be removed from you.
Again, we go back to the point should you really have had to hand in your resignation to get the pay rise/promotion you had previously declined?
Stop and think of your reasons and career goals!
Think objectively, ask yourself which opportunity will add most value to your goals, is that career or a work life balance? Reflect on what is important and speak to other employees who are in the other company and ensure the decision matches your personal goals also.
Reflect on all areas of your life and consider the deal breaker options and ask yourself will this counter offer bring about that change I’m seeking?!!…
Accept – Be aware your resignation will not be forgotten and may jeopardise any future promotion due to loyalty. You may develop a feeling of guilt towards management and your team.
Decline: Thank your employer for the opportunity and confirm your intention to leave for pastures new. Leave the door open and always try and leave on good terms.
Hospitality is a small industry!
Remember as an employee you’ve been unhappy enough at work to not only look for another opportunity, but to interview and take the time to explore the market!
If you work in hospitality and want to discuss your market worth or need some advice on any aspect of your career journey, please don’t hesitate to contact Nichola on Nichola@DalyRecruitment.com to arrange an over the phone chat or a coffee!