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Counteroffers on the rise as companies act to retain key staff
With nearly three in four (72%) senior HR executives expressing concern over losing top performers in 2012, many employers have increased their use of counteroffers, finds new research from Robert Half UK.
Nearly one in four (23%) executives say that it has become more common for their organisation to issue counteroffers to employees tempted by other jobs. The figures suggest that while the wider job market remains stagnant, companies are increasingly ardent about keeping high performance professionals on board to help deliver business growth.
Despite the rising prevalence of counteroffers, only 31% of employers say it is at least somewhat common for employees to accept a counteroffer, leaving more than half (53%) who indicate it is uncommon and 16% who are unsure. This suggests that additional remuneration is only part of the reason employees leave for other opportunities.
When senior executives were asked why they would not counteroffer, 22% said that they would not do so because they would be unable to see a future for disgruntled employees. A fifth (20%) said that they would not make counteroffers because employees would end up leaving the business in any case.
Yet awareness of the risks associated with counteroffers appears to be relatively high. The biggest concern (40%) reported by senior executives about issuing counteroffers was that a department’s salary structure would become skewed, potentially opening a company up to suggestions of unfair disparities in remuneration for similar positions.
This was followed by worries that the employee would be less loyal to the organisation (28%) and that relationships between the employee and their manager or co-workers would become strained (25%).
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