Someone just handed in their notice. It’s a complete surprise and now you’re stuck. Should you counter offer? Persuade them to stay?
You know that it costs more to recruit someone new than to retain someone on a slightly higher salary. So, offering more money can be enough to make someone stay. But for how long?
We’ve been helping companies navigate IT recruitment for over 20 years. We’ve heard lots of stories when it comes to counter offers. We want to share our advice on why you should always think twice before making that offer.
A counter offer is only ever a short term solution
Did you know that 80% of people leave within 6 months of accepting a counter offer and a staggering 90% within 12 months? This is why a counter offer should only ever be seen as a short term solution. A chance to buy you more time whilst you think what to do next. If your counter offer is a simple salary increase, it’s unlikely to be enough to solve the problem long term.
Why did this person resign in the first place? Was it just money?
There are lots of reasons that people resign for a job, and it’s rarely just about money. There’s always a secondary reason that’s made them make the move. Starting a new job is not something that people take lightly, so remember that your colleague will have thought long and hard about their decision. Sometimes a reason for leaving just can’t be fixed. It could be working hours, location, lack of progression. A salary increase will only mask these issues for a matter of months.
A counter offer can actually reflect badly on your company
You may think that a salary increase will make your colleague feel valued. Think again! It can have the opposite effect. Why have you not offered an increase before? Has this person not been doing a great job? What has it taken for them to resign for you to see their value.? And is it their value that you really see, or do you not want the additional work of recruiting someone new? There’s lots to consider before jumping in with that offer!
How Langley James can help
We won’t pretend that the power is very much in the candidates’ hands right now. But that doesn’t mean that recruiting someone new will be a bumpy ride. Yes, it’s harder to recruit directly. Job adverts are nowhere near as effective as they have been. So, what do you do if someone resigns and they need replacing with someone truly great? This is where we can help. As soon as someone resigns, pick up the phone to us and let’s get the ball rolling. Our extensive database of IT candidates and our network mean that we can act quickly. You could have CV’s, interviews, and an offer all within a week!
Someone new can bring a breath of fresh air to your team. New skills, new experiences, and enthusiasm. So take time to think carefully when someone resigns. Is a counter offer really the answer?