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    Counter offers becoming standard practice

    In the current skills climate, counter offers are becoming an automatic response from managers desperate to hang on to talented people. So says Debbie Goodman-Bhyat, MD of Jack Hammer Executive Headhunters.

    For example, last year 31% of the candidates headhunted by Jack Hammer received aggressive counter offers from their existing employers. And 20% of these counter offers were successful, with the candidates opting to remain in their jobs.

    “Employers will often go to great lengths to retain the service of a valuable employee in a bid to avoid the hassle and expense of finding a replacement.”

    Think twice

    However, Goodman-Bhyat warns that candidates should think twice before using this situation to ‘strong arm' their existing employers into offering better packages.

    “Some candidates, who have no intention of leaving their current jobs, will pursue negotiations with headhunters and potential employers as a purely strategic move. When another offer of employment is received, it is used as leverage to secure a better package in the candidate's current organisation.

    “In this case, employers whose hands are forced will grudgingly make a counter offer, but their trust in the employee has most likely been eroded. This strategy may also burn bridges with future employers.

    Although their immediate career goals have been realised, candidates who accept counter offers should be aware of the damage to their reputation. This action is perceived as lacking honour and integrity, and as headhunters, we are hesitant to pursue candidates who have in the past accepted counter offers,” says Goodman-Bhyat.

    Quick fixes

    She adds that counter offers tend to be quick fixes:

    “Tracking the careers of candidates that accepted counter offers, we found that 80% were looking to change jobs again within 9 to 12 months of accepting.

    “These candidates often re-enter the job market because promises made in the counter offer were not upheld. Alternatively, the underlying reasons that initially motivated them to seek a new opportunity may be unchanged.”

    Goodman-Bhyat mentions that a loss of trust between employer and employee results in permanent damage to the working relationship. Extravagant counter offers may also cause disgruntlement amongst other employees, which can affect the working environment.

    “This is not to say, however, that counter offers are wholly ineffective. Of those that are accepted, 20% are successful, with the employee remaining with the organisation for a significant amount of time,” she concludes.

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