Counter offers can be flattering to receive. And in some cases, it’s the ideal outcome. But it’s a proven fact that 80% of people leave within 6 months of accepting a counter offer and a staggering 90% within 12 months. So clearly this isn’t the answer to making your job any more satisfying.
Our expert consultants share their insight on counter offers and whether they are a good idea or not.
Why do companies give counter offers?
It’s simple. It costs more to recruit someone new than to retain someone on a slightly higher salary. In fact, the cost of replacing a senior member of staff can be as much as twice their salary. So it makes sense that your company will try and keep hold of you.
That, coupled with the current shortage in talent is creating a surge in counter offers. The drop in candidate availability is the most severe in almost 24 years. And there are more jobs on the market too – in fact, it’s the highest in almost 24 years too! In June alone, there were 758,000 open jobs in the UK. Demand for staff has never been higher and companies know how hard it is and how long it can take to replace you.
So, a counter offer may not be a sign that you are valued, it can be simply more a staff retention tool.
Questions to ask yourself
- Why did you start looking for a job in the first place?
- Why did you even start to look for another job if you are happy with your current employer?
- Have you hit a ceiling in progression?
- Are you unsatisfied with your employers approach to flexible working?
- Do you have the desire to learn more and increase your skills?
- Is you employer using outdated technology? / Do you want to get your hands on new technology?
The pros and cons of accepting a counter offer
Here’s just some of the pros and cons to consider before you define that new job offer.
- Your pay increases without you having to do anything – sometimes resigning is the quickest way to get a pay rise!
- You don’t have to experience the pain of working your notice
- You don’t have to worry about settling into a new role
- No need to make changes to your daily commute – life continues as normal
- The reasons that you were looking for a job haven’t gone away (it’s very rarely just salary!)
- Your loyalty will always be in question by your employer
- Trust in your employer will fade. Why did they not offer you more earlier? Or make any promises now on the table.
- It’s 80% likely you’ll be looking for another job in 4-5 months
- If you are not updating your tech skills by staying where you are then your CV will become dated
One of the most important things to consider is if accepting a counter offer and staying with your current will actually help you achieve what you want to in your career.
Right now, there are so many opportunities in IT Jobs, both permanent and contract and there’s never been a better time to look for work. So if you are looking for progression, higher satisfaction or something as simple as a better work life balance, get in touch. We have been helping companies with their IT recruitment since 1999 and work with some of the best names in the UK.