In today’s ever-evolving job market, counter offers are making a swift return. While there weren’t enough jobs in the marketplace a few short years ago, that isn’t the case today when the demand for quality candidates greatly outweighs supply and there’s a skills shortage affecting more industries than ever. As a result, employers have begun to understand the impact that losing a talented employee to another company can have on their bottom line, and are increasingly presenting resigning employees with counter offers to entice them to stay.
Since it wasn’t as common to receive a counter offer in the past, many job seekers are caught off guard when they receive one. To help educate our candidates on the different factors that they should take into consideration before making their final decision, we recently surveyed approximately 400 job seekers and working professionals that we have worked with in the past year. To give us a better understanding of what goes through one’s head when reflecting on counter offers, we asked questions about the factors that motivate them to search for a new job, what would make them consider a counter offer, as well as how their decision may have affected their career.
The results? We came across some noteworthy trends. For example, new growth opportunities and new challenges were two of the top three factors that would lead someone to look for a new job, but the #1 factor that would hold the most weight when considering a counter offer is a salary increase. What we sometimes see is that a job seeker who had many reasons for wanting to leave – perhaps new growth opportunities or even a better working environment – gets blinded by the idea of more money, which doesn’t help them achieve their career goals in the long run.
Our results also found that acceptance of counter offers can greatly affect working relationships. For instance, of the 28% of respondents who left their job within a year of accepting a counter offer, 64% of them felt that staying with the company negatively impacted their relationships with their supervisor and colleagues. As a result, it’s important to consider how other employees will look at you once you accept a counter offer, and while they may not outwardly express their negative feelings, it can tarnish your reputation within the company. In many scenarios, the company’s desperate to keep the employee because they’ll be more costly to replace, but a certain level of employer trust gets broken and the employee is no longer seen as a loyal member of the company. Another factor to keep in mind is that accepting a counter offer can also impact your reputation throughout the industry as a whole. The world is smaller than you think, and you never know who knows who. Imagine applying to a job down the line, only to realize that the hiring manager is the one who made you the offer that you walked away from when your current employer enticed you to stay.
To learn more about the implications of accepting a counter offer, check out the infographic below: