Killing The Counteroffer

You've probably already heard me rant about the downside to our near perfect economy and the challenges of hiring and keeping great people.

It's been almost 50 years since we've seen employment like this and its offspring include signing bonuses, equity and counteroffers. Each child has a hungry open mouth to feed but the black sheep of the family needs to be put out to pasture.

The "black sheep" I'm referring to is a counteroffer and employer and employee alike can assume that role. Just like re-hires, counteroffers have a 80% failure rate within 6 months. Here's why:

For employers:

• Precedent: even with an NDA, word will get out and somebody else will try
• Annual salary reviews are capped or modest - even if the performance is outstanding; it's bad for morale
• Trust is lost and money won't fix the issues that led the candidate to look in the first place

For employees:

• You have to resign to get one. It's crude but effective, bring your umbrella to work every day - there's going to be a gray cloud following you around the office.
• If you've already expressed potential issues that weren't dealt with, then it's likely they will persist in the future.
• Job security will drastically decrease - the company now has time to develop plan B keeping you while they find your replacement.

The small gains of the short term might not pay off in the long run for either side of the employment fence. Managers at all levels will be wise to have regular conversations about career growth and fulfillment, work/life balance and provide a means for employees to grow while also being challenged. That's the first step on the road to retention.

If you're hiring, talk about it in the interview process by politely weaving it into the conversation about loyalty and dedication. That process will also help you learn what a candidate's real motivation is and if the position you're discussing will satisfy their needs.

Counteroffers can make employees feel entitled and valued until they remember what drove them to consider leaving initially. They're a loose-loose proposition for everyone.

Let's enjoy this robust economy while we grow and learn from the lessons of competition.

Of course, this is only my opinion, but it's one I value highly.