Would you engage in counter-offer negotiations with employees?

David Bloch, CEO of the Brightwater Group comments:

Only 27% of employers have said that they would engage in counter-offer negotiations with their employees if they hand in their resignation while 34% said that they wouldn’t even consider it. Just under 40% of employers said that they would consider it under certain circumstances. The 2 key questions are; Is it effective? And is it effective long-term?

Short-term; 57% of Irish candidates say they would be unwilling to even consider a counter-offer. Long-term; 67% of people who stay after being counter-offered are looking again within 6 months, and 92% within 1 year.

The fact that the majority of Irish candidates wouldn’t even consider a counter-offer is unusual with most candidates globally prepared to at least listen to their employer’s offer (96%). This massive difference is cultural with big difference between countries. The Irish show real confidence in their decision to leave, and are not generally resigning to pressurise their employers into promotion or pay rise.

The fact that 57% wouldn’t listen still means that 43% would at least consider a counter-offer and we have found that less than 5% stay after resigning, but what of those 5%? Independent research has shown that most do not settle back in because the fundamental reasons for resigning are not cured by pay rise or promotion. Sometimes a whole new project and area can reinvigorate an employee, but generally the underlining problems remain and the employee soon gets disaffected again. Basically, if a person gets to a point of leaving, they have generally had enough… they’re just not happy and job and money are only a part of that (company, colleagues, commute etc) and with the acts of preparing a cv, meeting companies, accepting an offer and eventually resigning… it is a long way to come back from. From the employers perspective, that bond of trust with their employee is seriously damaged, damaging the relationship.

In essence, a successful counter-offer can solve a problem short-term, but rarely long term. It is clearly best to meet, talk and look after your employees before they resign, and hope that you can meet their aspirations.