The world of financial services is awash with counteroffers. Are they anything more than just superficial fixes? Despite the many, many times we’ve seen them fall through, counteroffers are still commonplace. Why? And what are the dangers involved with saying yes?
More than Money
A salary increase alone won’t fix a rotten culture. A significant pay rise is an enticing prospect, but deep-rooted cultural problems will come back to bite. The candidate experience is defined by more than money – failing to repair a broken infrastructure will only delay the inevitable.
Speaking of delays, it’s not uncommon to see counteroffers used as a stall tactic while employers prepare to bring on a replacement, knowing that they won’t have to pay the increased wages for long.
It’s worth remembering that employees don’t just quit their company, they quit their leaders too. Most people know what it’s like to work under poor leadership, and they also know how refreshing the alternative can be.
Counteroffers can set a grim tone for the rest of the team. Will it convince other employees to go out and look for new jobs? Will colleagues question one another’s loyalty? What does it tell them about how much they’re paid right now? Staff turnover can damage morale at the best of times, but when counteroffers are thrown into the mix, the situation gets even messier.
There’s an important question to ask on the other side of the coin too – if an employee has gone through all the trouble of interviewing for another role, and in some cases, even accepting that role, why should they be expected to stick around in the long-term?
For the leader, a layer of trust is removed, the team dynamic is shifted, and there’s no telling that the employee in question won’t accept a future counteroffer. Plus, it can set a bad precedent for the rest of the team.
A Question of Reputation
Networks talk. A lot. Turning your back on a job offer you accepted does not always paint the best picture, and if you end up leaving anyway, it could hurt your chances of finding a job in the future.
Transparent communication is key – it can help you avoid burning bridges on either side. That said, it’s important to make sure you get what you’re promised from the counteroffer (should you choose to accept it). We’ve seen promises fall through, job offers rejected, and talented candidates stuck with limited options as a result.
Support from Broadgate
According to Gallup, voluntary employee turnover costs businesses a staggering $1 trillion every year, citing that the cost to replace a single employee can range between 1.5 and 2 times their annual salary.
Considering the grave impact turnover has on company time, money, and morale, it’s easy to see why employers are quick to resort to the counteroffer – don’t let it affect your career trajectory.
Are you currently stuck between a rock and a hard place? Or in this case, a job and a slightly different job? Broadgate can help you out. If you need to make some tough decisions, you’re not alone. Reach out to me on LinkedIn and we can have a chat about what’s next, or you can visit our website here for more info.