Recruitment and Counter Offers
A Dicey Situation
Proactive employers and employees take note of this employment reality!
Don't gamble or leave things to the throw of the dice - be one step ahead of the game.
We have seen a notable increase in companies making counter offers to employees following their resignation and employees accepting these counter offers.
Why are counter offers trending?
Whilst unemployment remains high, talent and good skills are scarce. More and more employers are resorting to counter offers in an attempt to retain employees with hard to find skills. Money is not necessarily the primary motivator for employees seeking greener pastures, yet money is often the motivator for them staying.
This raises a few issues:
What should employers consider before making a counter offer?
- You may be setting a precedent by sending a message to other staff that the way to get an increase is to present you with a job offer. Others may feel disgruntled knowing that their colleagues have received an increase, not in recognition of their performance but simply because they placed pressure on you. This may also raise questions amoungst your staff as to how market-related your salaries are.
- There are clearly longer term risks of driving your salaries bill up by 'encouraging' employees to challenge current remuneration levels in your organisation.
- Have you addressed the real reason the person wanted to move - boredom, lack of challenge, opportunity or management support? Are you going to be able to deliver and meet their aspirations going forward or are you just delaying the inevitable?
What should employers do to retain good staff?
A good place to start is to develop a Retention Strategy which encompasses areas such as:
- Hiring the right staff - this is where it all begins. Besides the overall job and person specifications, organisational fit should be a key aspect in recruitment.
- Conducting regular performance reviews - providing employees with a realistic view of their contribution and areas for improvement.
- Developing clear career paths - so employees can see their future in your organisation.
- Developing succession plans - which indicate a future for key staff and which takes the pressure off you having to make a counter-offer, as you are able to fill the position.
- Market related remuneration packages - if you want to keep good staff, you need to compensate them fairly for the value they add to your company.
- Employee development plans- employees that feel valued and appreciated are likely to be more loyal to your business. If you invest in your employees they will feel that you are aware of their worth.
- Open communication - if you have an open relationship with your employees and are approachable and aware of their needs, they will feel more comfortable communicating any concerns they have with you before it becomes a deal (or employment) ending problem.
What should employers consider when recruiting?
- Careful consideration should be given to the package offered - including money and career prospects. Be mindful that an applicant may get a counter offer and that you may lose the opportunity to bring that person on board if your offer is only a marginal one.
What should employees consider before accepting a counter offer?
- Is the counter offer simply sugar to help you swallow a bitter pill? You should reflect on the real reasons for looking elsewhere. Whether it was career advancement, working environment, money or management style, does the counter offer address the problem?
- Has trust been broken and will you be viewed with suspicion every time you leave the office? Will your employer feel insecure as to your long term commitment and how will this affect your career progression?
- Are you simply flagging to your employer that you may not be around for long and that they need to find a replacement for you?
- Are you burning bridges? Employers that are rejcted, especially after they have made you a counter offer, feel resentful of time wasted and many, even years later, won't consider you.
What should employees do to avoid the "uncomfortable" counter offer?
Think about your response to a counter offer before starting your job search. If there is a reason you would stay - then rather raise it with your employer before going out there.
If you have done this and still see the need to look elsewhere and are then faced with a counter offer, then know that you have made your employer 'agree to your demands' under duress - and that will most likely not sit well with your employer going forward.
I hope this has given you some insight into dealing with the tricky situation of counter offers.
All the best,
Using Our Recruitment Agency
Recruiting new team members can be an expensive and time-consuming task for any business; one that is vitally important but also doesn't offer any guarantees. Employing top talent is becoming increasingly competitive in today's job market but finding the right candidate is crucial to driving your business forward.
Sandi Crowther Recruitment is a top recruitment agency based in Durban, South Africa with a large quality database that has been built up over the past 25 years that has a thorough interview and selection process in place which yields top notch candidates for clients.
1. Benefits of Using Sandi Crowther Recruitment
So what exactly is the benefit of using Sandi Crowther Recruitment to help find and hire those star employees?
Most employers can look back over time at some of their hiring decisions and wonder why on earth they hired that person. Whether it was a skills mismatch, work ethic and energy levels or simply someone who did not gel with the team - all these reasons impacted in some way on their business.
Our agency has a successful track record as we have dealt with thousands of applicants and understand how to identify the critical aspects that seperate our candidates from the rest - things that you will not find in a CV.
The success of an employment agency is directly related to the success of the client and the staff they employ making them a perfect partner. As any good partner will do - they will bring out the best in you and your business!
2. A Knack for Identifying Top Talent
Often when employers advertise jobs, their inbox gets flooded with CV's that are either not relevant or don't meet their requirements. They are left searching through endless emails trying to find the right calibre of candidate that just isn't there. Making the whole exercise futile and a complete waste of time.
Then in an attempt to just get on with the process they call in people for interviews - only to find that their initial impression of the candidates CV is confirmed. They are not going to be the right fit.
The difference with our agency is that we have a sound insight into the job market, with a well-established database of job seekers that meet our high expectations, and this is continuously being added to. As an established placement agency with a history in the local job market, we already have long associations with top notch talent who we have placed in the past and as such we are often the first to know when these individuals re-enter the job market.
Our team is skilled in spotting the gems and coming up with a shortlist of applicants that will excite you!
3. Negotiate Salaries
Employers often go through the entire recruitment process to find the right person, only to discover that their salary expectations are far from what they are willing to pay them.
Our recruitment agency provides a "mediation service" when it comes to remuneration. Through candid discussions with the client and applicants, together with benchmarking remuneration against other roles and companies in your industry, we are able to manage expectations and influence where necessary. Part of the remuneration that we engage in, includes linking remuneration and personal growth and opportunities for the individual. This role alleviates the stress from our clients and the awkward conversation between the parties and ensures that a fair agreement is met, that leaves both the client and the applicant excited to start their new role.
Let us show you what we can do to help,