Following your resignation, you will most likely receive a counter offer from your employer. Counter offers focus around 5 very influential aspects, and typically a counter offer will cover at least three of these areas. The objective of a company producing a counter offer is to promise a deal that sounds better than the offer you have received, and statistically the majority of people who accept counteroffers are looking for a new role within six months to 9 months.
It is statistically proven that between 70-80% of people who accept counter offers are back on the market within 6 – 9 months as the main reasons for them looking to move haven’t been addressed.
The five areas of high influence are:
- On average it costs a company well over €10,000 to replace a staff member between agency fees and training costs and loss to the business during the transition period. While you may feel special by being offered a counter offer the main underlining reasons are mainly cost saving for the company.
- Emotional Attachment. Your current employer will use senior members, including your direct report, to play on your emotional attachment to the organisation. Typically, this includes the management mentioning how disappointed they are in your decision, mentioning that they had really high hopes for you, and that they saw you as a very important member to the future of the group and how you are a natural fit to grow into a senior management position. Remember, this move is about YOUR career, not your friends so don’t be emotionally bullied into staying.
- Promotion Promise. Following on from the Emotional aspect, organisations look to affect your decision by making you scared of the ‘missed opportunity’. We see this consistently implemented by senior management – taking about a promotion to lead a division or a new structure that is just round the corner. They usually say they are finalizing the strategic plans, and that you were in line for a promotion to lead an important and highly influential division. Remember, if there really was a promotion available for you, why did they wait until now to produce it? It’s just to appease you into staying.
- Career Development. The employer will ask the reason behind your decision to take another opportunity, reassuring the groups commitments to the points you have mentioned. In your case they will most likely discuss how the group has a view to expand your division, and how they will deliver on the promise first made about growing you team and managerial aspects.
- Remuneration Promise. You will be offered an increase in base salary that will be more than the offer received. This is effectively the easiest way for an organization to maintain your services whilst looking for a replacement. The reality is that this increase will be an advance on your bonus, and should you make it to the next bonus period, your total remuneration will remain the same. The employer will also promise an increase in your discretionary element, with a view of replacing you before the bonus season comes round.
Remember before entering any new job process sit down and think what are your key motivations, your key reasons for leaving. If its purely down to financial gain and money then have a conversation with your current employer FIRST before entering any processes. As the famous phrase goes your only as good as your word and in a small and competitive market maintaining your reputation with prospective employers is key.
For anyone working within financial services considering a move or some market information please contact Keith Walsh for a confidential conversation on email@example.com or call me on 01 703 88 22.