|
by Eileen Levitt. Reprinted with
permission.
For those who haven't had the pleasure of experiencing
a counter offer, it is one of the most common scenarios
played out today to keep an existing employee from
leaving for a new employer. Counter offers come in
all shapes and sizes - ranging from offers of more
money to title promotions, to leased cars and other
benefits.
The idea is basic: companies entice departing employees
by offering ups and extras. They often tempt the
individual with an offer of a promotion, or prey
upon their insecurity (ex. fear of the unknown, feelings
of guilt, etc.) by making a more emotional appeal.
The conversation can open with anything from, "How
much will it take to get you to stay?" to "We
haven't given you the recognition you deserve, please
give us another chance." The present employer
will then come up with promises that are seemingly
lined with gold. Are they? And furthermore, should
employers use them?
In a survey done by the Wall Street Journal, over
50 percent of individuals receiving counter-offers
after turning in their resignations accepted them.
Within eighteen months, 93 percent of those accepting
counter offers had left, some voluntarily and some
fired. All of the remaining 7 percent were actively
seeking new employment. All in all, the reasons the
employee had for searching for new employment in
the first place do not go away just because they
received more money or a promotion.
Given these alarming statistics, many companies
have policies against making counter offers. A national
survey recently conducted by The HR Team, Inc. of
human resources executives (at companies with more
than 50 employees) found that less than 20 percent
of respondents even make counter offers. For the
minority that does make counter offers, the criteria
is dependent upon: the employee's contribution to
the company, the value of the employee, the skills
of the employee, the position, and the employee's
previous performance.
The HR Team survey also found that less than 5 percent
of the HR professionals surveyed even keep statistics
on counter offers. For those that do, the counter
offers are geared toward specialty jobs that would
be difficult to fill.
Even when counter offers are successful in keeping
the employee at your company, it is not necessarily
for the best. For example, when it is time to deal
with promotions, an employer has to decide whether
they are comfortable giving more responsibility to
an employee who has once expressed a desire to leave.
Also, whatever caused the employee to start looking
for another job in the first place will probably
not disappear forever.
So, the next time an employee gives you their resignation
and you're tempted to make a counter offer, think
twice. Can that employees issues really be addressed
with money or perks?
Eileen Levitt is President of The HR Team, Inc. of Columbia, MD. She may be reached at 410-381-9700 or . She invites you to subscribe to her HR newsletter by visiting her website at or by sending an email to .
|
