Don’t bother – the deal’s done.
Friday 20 July 2007, 9:19AM
By Mediacom
528 views
Almost half of all employers counter offer resigning staff but the majority of these attempts are unsuccessful, according to a survey by specialist recruiter Hays.
Of 1,700 employers surveyed for the annual Hays Salary Survey, 48 percent said they counter offer staff. But 80 percent of counter-offered staff still left the business within 12 months - 30 percent left as planned despite the counter offer, 42 percent stayed less than 3 months and 8 percent stayed between 3 and 12 months. Just 20 percent of those counter offered remained with the business longer than 12 months.
“As the skills shortage continues, employers will increase their efforts to attract, retain and reward quality staff,†said Jason Walker, regional director of Hays in New Zealand. “So in cases where an employee with skills in demand resigns, many employers understandably try to counter offer them.
“But this is rarely a successful retention strategy because the employee already has several other offers on the table. They’ve applied for and seriously considered other vacancies so their decision to leave the company was made long ago.
“Even if a counter offer is accepted, we still caution concern as the original motivation for looking for another role remains, often leading to another resignation. This motivation will not be solved simply through counter-offering a slight increase in salary. Unless the issues are addressed, the employee is likely to still seek a better offer elsewhere.
“For those employees considering a counter offer, we would 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 fact that the success of counter offers as a retention strategy is rare, we would not be surprised to see an increase in counter offers in the next twelve months as employers continue to attempt to retain their valued skills,†Jason said.
To view the Hays Salary Survey, visit www.hays-hps.co.nz/salary or request a copy from your local Hays office:
Of 1,700 employers surveyed for the annual Hays Salary Survey, 48 percent said they counter offer staff. But 80 percent of counter-offered staff still left the business within 12 months - 30 percent left as planned despite the counter offer, 42 percent stayed less than 3 months and 8 percent stayed between 3 and 12 months. Just 20 percent of those counter offered remained with the business longer than 12 months.
“As the skills shortage continues, employers will increase their efforts to attract, retain and reward quality staff,†said Jason Walker, regional director of Hays in New Zealand. “So in cases where an employee with skills in demand resigns, many employers understandably try to counter offer them.
“But this is rarely a successful retention strategy because the employee already has several other offers on the table. They’ve applied for and seriously considered other vacancies so their decision to leave the company was made long ago.
“Even if a counter offer is accepted, we still caution concern as the original motivation for looking for another role remains, often leading to another resignation. This motivation will not be solved simply through counter-offering a slight increase in salary. Unless the issues are addressed, the employee is likely to still seek a better offer elsewhere.
“For those employees considering a counter offer, we would 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 fact that the success of counter offers as a retention strategy is rare, we would not be surprised to see an increase in counter offers in the next twelve months as employers continue to attempt to retain their valued skills,†Jason said.
To view the Hays Salary Survey, visit www.hays-hps.co.nz/salary or request a copy from your local Hays office: