The recruitment cycle is constantly changing, and this year the majority of recruitment firms are battling the rising number of counter offers as companies try desperately to hold onto the limited talent pool. Whilst always being a possibility in any recruitment cycle or hiring cycle, 2021 was dubbed ‘the year of the counter-offer’ by several online outlets and this pattern has continued. The current market is more competitive than ever, with businesses fighting to keep their employees, after a tumultuous few years and tighter budgets, and counter offers have gone from being an occasional occurrence to something we now have to actively prepare for. Companies are struggling more than ever to source valuable replacements, as well as trying their best to save on extra costs (which include hiring and training). Due to salary and promotion freezes since the pandemic, a high percentage of the industry has missed out on key milestones on their career advancement and progression, and understandably, salary and title have become important drivers in considering opportunities. However, when considering a counter offer it’s essential that you ask the question – why wasn’t I offered this before?
Counter offers can of course be worth considering – it means that you wont have to deal with the upheaval of switching job and can instead stay with your colleagues, clients you have built relationships with, alongside a generous pay rise, and maybe even additional responsibilities that you’ve been asking for. However, 80% of candidates who accept a counter offer end up leaving within 6 months, and 9/10 candidates who accept a counter-offer leave their current employer within 12 months. It’s worth considering that if your employer believed you were worthy of that pay grade, or of those additional responsibilities, why weren’t they given to you in the first place? The promises that are made during counter offers may not even happen, and then you are left potentially turning down a job that could have escalated your career, or given you your dream client. Especially if you are leaving as a result of something that is not tangible, such as culture or for work/life balance reasons, these factors cannot be altered by your employer and you will ultimately be in the same place you were before.
When considering a counter offer, take your time to reflect on the reasons that made you consider leaving in the first place. Consider the offer carefully – why weren’t you given this client before? Why weren’t you given this pay rise when you asked for it? If the business can now give these options to you, its important to question whether the company is simply trying to protect themselves. Keeping a current employee is much easier than looking for a replacement – there are additional costs and upheavals that come with new recruitment processes, taking out valuable time to interview candidates, as well as ultimately training new team members. You also need to consider the fact that there is no going back once your notice has been handed in – this will greatly affect how you are viewed by your business and by your colleagues. Key stakeholders in the business as well as your team will be aware of these events, and relationships will inevitably change as a result of this. This question of loyalty can become a barrier to any future opportunities at your current business, potentially barring you from being part of that team that is pitching for an exciting new client or hindering your progression in the next round of promotions.
Take the time to carefully consider these possibilities when weighing up whether to take a counter offer, especially when there is another offer on the table from a company that is willing to offer you the salary and position that you want. Think about the long-term benefits, whether that be development or progression, and the excitement that both opportunities present. If you want to accept the counter-offer, make sure that you are accepting for the right reasons and that the company is serious and ready to offer what they have promised.
_______________
As experienced recruiters, the Melbury Wood team is available for confidential discussions on this topic and how to navigate tricky conversations such as these.
