The employment pendulum has shifted to a candidate driven market and we believe it is important for our candidates to understand that whilst it is enticing, accepting a counteroffer is not always the best choice.
In the past 24 hours, our consultants have dealt with numerous candidates accepting counter – offers ranging from a 15% – 40% salary increase.
Employers be warned: When offering a counter, be aware an increase in pay does not address the cause of the employee exit and typically Counter-Offers are a short-term fix when firms need a long-term solution.
And before you accept that counter-offer be aware:
An Increase Salary DOES NOT Equal an Increase in Motivation
Following the acceptance of a counter-offer, 55% of employees report greater unhappiness and decreased levels of commitment (Chen and White, 2018)
There Is a Potential for An Uncomfortable Corporate Culture Once Your Loyalties Have Been Questioned
Only 16% of employees who accept counter-offers believe their relationship with their employer improved post-offer. (Chen and White, 2018)
CAN YOU ACHIEVE THE GOALS THAT YOU ENVISIONED FOR YOURSELF HAD YOU ACCEPTED A NEW ROLE?
Instead of chasing money, acquire new skills, develop your talent, and show your passion. The money will always follow – trust me! (CISO for Voya Financial, Raj Badhwar, 2021)
It may be appealing but a short-term monetary gain is not necessarily the wisest next career step.