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COUNTER OFFERS ARE COUNTER PRODUCTIVE
Counter offers are usually unsuccessful strategies in long-term staff retention, according to a survey by specialist recruiter Hays.
Of 1,700 employers surveyed for the annual Hays Salary Survey, 52 percent counter offer staff when they resign. But 37 percent of counter-offered staff still leave immediately anyway, and a further 32 per cent leave within 12 months.
“These results show employers are hard-pressed to hold onto an employee once they’ve tendered a resignation letter,” says Jason Walker, Managing Director of Hays in New Zealand.
“In the context of today’s skills short market, it’s understandable that employers attempt to woo back a resigning employee who has the appropriate skills and cultural fit and who is highly valued.
“But counter offers are rarely successful in retaining these employees. They have other offers on the table and have applied for and seriously considered other jobs. Their decision to leave the company was made long ago.
“Offering a higher salary is also not the only element in successful retention, since for most people their motivation for resigning is unrelated to pay. Unless the original motivation for looking for another role is addressed, the employee is still likely to seek a better offer elsewhere, despite any offered salary increase.
“If you have been counter offered, we advise you to reflect on the reasons you looked for a new role initially and gain commitment from your employer to tackle these issues before accepting the offer.
“Despite the frequent failure of counter offers as a retention strategy, we would not be surprised to see an increase in their use as employers continue to attempt to retain their valued staff.”
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