In some cases this can be right. It’s often said that, “it’s easiest to get a job if you have a job.” But, how are you using that bargaining position and just what effects might using some leverage there cause?
Have you gone into the interviews for the new position with the thought that if only you can get an offer, then you could go back to your current employer and see if you can get them to ante up? If so, you could be playing with dynamite. Why is this dangerous? Let’s examine the point of view of your current employer.
We call this the Counter Offer. Counter Offers are usually accepted when compensation was the main reason the employee wanted to leave. The decision to accept the counter offer is usually an on the spot decision in front of the current employer. You interview for the new position, get an offer, tell your current employer, they hand over more money, you’re happy, end of story, right? Wrong.
Let’s look at the real outcome. Yes, your paycheck may have grown just a bit, but what else happened:
- Loyalty is questioned. When it was announced that you had been given a big offer, your company and your supervisor now suddenly sees a total lack of loyalty in your company. You are no longer seen as stable. Once the announcement is made, the damage is done. The card has been played.
- Counter offers are seen as a threat. Most hiring managers and supervisors don’t like the feeling of being backed into a corner. Those survival reactions of “fight or flight” will come into play and they are likely to make some poor decisions.
- Counter offers buy time for the employer. The hiring manager may do whatever it takes to keep the employee, but may eventually begin the process of finding a replacement for the employee they may now view as disloyal.
- Open positions are troublesome. Hiring managers do not like to have an open position because it creates more responsibility for everyone else, and quite likely for themselves in particular. Offering a counter offer is a short-term solution. The most likely result – the hiring manager will begin looking for a replacement as a long term solution
- The promotion track. Have you been on a promotion track? If so, that may have been seriously derailed. Most companies have ideas for their top employees, a future promotion track if you will. A counter offer can wipe you off of that promotion track as fast as you can say – “Upset in March Madness”
- Counter offers do not provide TRUE change. If an employee wants to leave a company due to concerns over lack of leadership, challenges, or other difficulties, those problems will not get changed just because a counter offer is accepted.
The End Result – 75% of employees that accept counter offers are not in that same position 1 year later.
Thinking about a Counter Offer? Call us first.
