Your Role in the "War for Talent"

Employers are worried about their employees. The increasing competitive landscape for recruiting and retaining talented employees is causing quite a bit of turmoil at all levels of management. Global Management Consulting firm Hay Group estimates that 160 million people worldwide will switch jobs this year.

Some experts have said as much as 25% of the US workforce will change employers this year. Today’s Department of Labor report stated that the number of people who voluntarily left positions vs being laid off or discharged was 1.5 in July – more than double the pre-recession level of .7 in Dec 2007.

Trust me, employers are worried about losing you and the “quick fix” to stop the exodus is an old fallback position  – the counter offer.

Here’s your problem – a counter offer is nearly always made to serve the best interests of the employer, not the employee. The National Employment Association estimates that 80% of the people who accept a counter offer either leave voluntarily or are discharged within 6 months of acceptance. Why such a high number?

Accepting a counter-offer is a bad idea.

There's a reason you started job-searching in the first place and chances are money is not the only reason. More money will not change other motivations that caused you to look. You may not be a huge fan of management, difficult co-workers, there may not be any coherent business strategy, you might be bored or stagnant, you don’t get deserved recognition, you’re working with insane deadlines, the commute or parking situation, the crazy hours – those factors aren't going change with a few hundred extra dollars in your pocket each month.

You have now made your employer aware that you are unhappy. From this day on, your loyalty will always be in question.

Once the word gets out, the relationship that you now enjoy with your co-workers will never be the same. What did you do to deserve a raise besides threaten to leave?

What makes you worth more today than yesterday in the employer’s eyes? The answer is nothing. Do you really want to work for an organization where you need to threaten to leave before getting a fair shake on your compensation?

Put the shoe on the other foot for a second. What if a company extended an offer to you, only to rescind the offer a few days later because they had “found someone better”? How do you feel about breaching your agreement to join a new company because of a counter-offer?

Counter-Offers are in the Employer's best interests, not yours.

Employers know counter-offers are not a long-term solution. They’re often made in a moment of panic. You need to finish this project or that. They’re running lean and losing you means they fall further behind.

They know the odds of you sticking around long term are slim so they’ll immediately start looking for your replacement. It’s only a matter of time before the panic wears off and you are more “disposable.”

Thinking long term is in YOUR best interests.

The Hays Study pointed at five factors areas organizations should address to attract and retain top talent.

• Confidence in the organization and leadership.
• Placing the right people in the right roles, creating efficient work processes, enabling collaboration, and providing a supportive working environment.
• Opportunities to learn, grow and progress.
• A fair exchange between contributions employees make and the rewards they receive.
• Authority to do their jobs and influence how work is done.

If your employer was hitting on all cylinders you wouldn’t have been looking in the first place. Chances are pretty good the new employer shows more promise in these areas than your current employer, otherwise you probably would not have accepted their offer.

When considering a counter-offer you need to seriously think about your experience with your company on these points and decide what's in your best interests long term.

It's unlikely they will make sweeping organizational changes simply because you accepted a counter-offer. As a matter of fact, I’m 80% certain they won’t and you’ll be somewhere else in 180 days.