Counteroffers on the Rise as 2015 becomes a Candidate’s Market
With recruitment returning to pre-recessionary levels, the best candidates are now receiving multiple offers and counteroffers as businesses recognise that the talent pool is shrinking. New research has found that 65% of UK finance leaders have seen an increase in counteroffers with 20% stating they have seen a significant increase.
Not only is the number of counteroffers increasing, but more companies are offering a sign-on bonus to attract the top candidates.
Therefore, it is becoming increasingly important for companies to act quickly. Those that act slowly and take their time making offers may find candidates will have been snapped up before the offer to them. Flexibility is also key – companies that are too rigid with their job offers may find they cannot secure their number one candidate.
Although counteroffers are a strong bargaining tool for jobseekers, they are not an effective long term strategy to retain staff. More than half of employers stated that the trust with their employee was negatively impacted after a counteroffer had been made.
In order to retain the best employee, companies need to ensure that they are paying competitively at all times – and not just when your best employee tells you they are leaving! An appropriate salary and bonus structure need to be in place along with attractive initiatives that support work-life balance – for example flexible and remote working.
While counteroffers may appear to work in the short term, employers must address the underlying issues in order to retain their top talent. If not, it is likely that the employee will still leave – just in a more prolonged way with a higher salary!