We have seen a trend this year that is frustrating for both client and recruiter and that it the counter offer
As recruiters, we have to accept that companies will counter offer because it makes economic sense at this point to offer more money or a new title to keep staff and avoid recruiting cost and disruption.
In fact the practice of extending and accepting counteroffers has become increasingly prevalent.
But candidates beware.
While, on the surface, a counteroffer (a proposal made by an employer to retain an employee who has received an external job offer) may appear flattering, it’s essential to understand its implications for both parties involved.
The Employer’s Perspective:
When a valued employee gives their resignation, employers often face the immediate challenges of potential workflow disruptions, recruitment expenses, and the loss of institutional knowledge. To mitigate these challenges, many opt to present counteroffers, which might include salary increases, enhanced benefits, or promotion. This approach is often viewed as a cost-effective retention strategy, especially when considering that replacing an employee can cost between 10-20% of their annual salary.
The Employee’s Perspective:
For employees, receiving a counteroffer can be perceived as validation of their worth within the company. However, it’s crucial for candidates to recognise that such offers may be driven more by the employer’s desire to avoid the inconveniences associated with turnover than by a genuine commitment to the employee’s career progression. Statistics indicate that 80% of employees who accept counteroffers leave their jobs within six months, and 90% depart within a year.
This suggests that the underlying reasons prompting the initial job search, such as limited growth opportunities, cultural misalignment, or job dissatisfaction, often remain unaddressed.
Over-Promotion as a Retention Tactic:
In efforts to retain talent, some employers may offer promotions that elevate employees beyond their current competencies. While this might provide a temporary morale boost, it can lead to challenges if the individual is unprepared for the new responsibilities, potentially resulting in decreased performance and job satisfaction.
The Role of ProFind Property Recruitment in the Property Industry:
In tighter financial climates, the propensity for employers to extend counteroffers increases as they aim to retain experienced talent without incurring recruitment costs. However, this reactive approach may not serve the long-term interests of either party. Professional recruitment agencies, like ProFind Property Recruitment, play a pivotal role in navigating these scenarios. By fostering open dialogues between employers and candidates, recruiters can uncover underlying concerns, ensuring that any decisions (be it accepting a new role or considering a counteroffer) align with candidates long-term objectives.
While counteroffers might offer a short-term solution, they often fail to address the root causes of employee dissatisfaction.
In an ideal world
For employers, it’s imperative to cultivate an environment where employees feel valued and see clear paths for advancement, reducing the likelihood of resignations.
Employees, on the other hand, should introspect on their motivations for seeking change and assess whether a counteroffer genuinely addresses their aspirations. Engaging with seasoned recruitment professionals can provide valuable insights, ensuring that both parties make informed decisions that foster mutual growth and satisfaction.
How to Get in Touch
📤 Email: Sally@profindrecruitment.co.uk
👱♀️ Sally Asling
⭐️ PROFIND PROPERTY RECRUITMENT ⭐️
🌐 www.profindpropertyrecruitment.co.uk
☎️ 0204 583 4941 📲 07760 787026
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