An online survey on how companies retain top talent was developed by Robert Half - a large specialized staffing firm - and conducted by a leading independent research firm. It included responses from more than 5,500 decision makers across a variety of professional fields in the US.
When asked if they ever extend counteroffers to employees to keep them from leaving for another job, 58% of the respondents replied that they did, whilst 42% stated that they did not. The respondents included senior managers in finance and accounting; technology; legal departments; advertising and marketing and human resources.
It was found that many employers did not want to upset employee morale or to go through the lengthy hiring process to replace the departing employee and their only option appeared to be to make a counteroffer. However, the study found that this solution was only temporary as, on average, employees who accept counteroffers only remained with their company for 1.7 years.
Paul McDonald - Senior Executive Director for Robert Half – stated:
"Counteroffers are typically a knee-jerk reaction to broader staffing issues. While they may seem like a quick fix for employers, the solution is often temporary. When employees accept a counteroffer, they will likely quit soon afterward."
He advised professionals not to accept these offers and added:
"Money doesn't solve everything. If you accept a counteroffer, your employer may question your loyalty to the company. And, more importantly, the root causes of why you were looking to leave in the first place may still exist."
Ladders - a job board specializing in six-figure positions - confirmed that offering money to solve retention problems does not bring the right result, as only 30% of employees questioned for their research stated that money was their reason for leaving.
Of the employees surveyed by Ladders, 94% said they would take their dream job right away; 31% would take a pay cut for their dream job; 67% would change jobs immediately – even if it was not for their ideal job – and 23% would take a position with a higher title in preference to a raise in money.
Paul McDonald suggested that employers conduct stay interviews to get a sense of who is not happy and why, stating that these interviews will establish trust between the managers and employees - which would help identify problem areas in the organization before they become deal breakers.
