When an employee is unhappy – whether it be because they don’t think they are being compensated properly, there is limited growth potential, or they just think it’s time to move on – deciding to make a change is a difficult choice to make. They start interviewing, find a role or company they are interested in, and get an offer that is enticing enough to take. When the employee decides to move forward with the new opportunity, more often than not, their current employer will provide them with a counteroffer that typically includes at least a compensation match to the new position, a higher title, and perhaps other perks. The employee is now at a crossroads: do they stay or do they go? And more importantly, is the grass greener somewhere else?
Counteroffers have been around for a long time, but given the current market conditions, we’re hearing about them more. They generally have a negative connotation, as they normally let a current employer know someone is actively looking for a new opportunity, which puts the employee on their employer’s radar. It is common to discourage people from taking counteroffers, but as with anything, there’s always positives and negatives.
When given the ultimatum of a counteroffer, what must a person consider? A pay raise is usually enough for someone to second guess leaving, but other issues, like growth opportunities, undermanagement, and poor leadership still may remain. Going to a new position also presents its own challenges – having to start fresh, create new relationships, and having to prove your worth is exhausting. There’s also the whole “the devil you know is better than the devil you don’t” argument. This always leads one to wonder, is the grass greener?
From an employer’s standpoint, there’s a cost associated with letting an employee leave. The time spent looking for a new employee, interviewing candidates, training the new hire; there’s a large time and cost burden with backfilling a role. A lot of employers figure it’s better to keep the employee that they have rather than go through the process of hiring new talent. Make no mistake, counteroffers are always made for the employer’s best interest, not the employee. Additionally, since the employee just got an increase in compensation, and potentially a lofty one, it could be a long time before the next pay raise comes.
Is the grass greener? Truth is, you really won’t know unless you take the chance and make the move.
Don’t lose sight of your original motivation; move and take the chance.
If you’re considering making a move, and want to discuss what we’re seeing in the market, reach out RonniD@Bachrachgroup.com