Survey: Holding on to Hard-to-Find Talent Top Motive for Extending Counteroffer; One in Four Employers Question Loyalty of Those Who Accept Them
MENLO PARK, Calif., April 30, 2014 /PRNewswire/ -- Counteroffers are becoming more common, new research from The Creative Group indicates, but they can be a double-edged sword. Twenty percent of advertising and marketing executives surveyed said the number of counteroffers extended by their company has increased in the last six months, compared to just 5 percent who believe it has declined. Thirty-nine percent of executives said the main reason to issue a counteroffer is to avoid losing an employee with hard-to-find skills.
More than two-thirds (67 percent) of respondents who have extended a counteroffer said it is somewhat or very common for employees to accept the bid. But an employer’s problems may not be solved: 28 percent of executives said they would question the loyalty of an employee who accepted a counteroffer; another 21 percent said they worry the offer might not address the issues prompting the staff member to leave.
“Many companies are willing to pull out all the stops to retain their best people in this talent-short market, but counteroffers are often counterproductive,” said Diane Domeyer, executive director of The Creative Group. “They tend to be more of a Band-Aid than a cure -- the employee may feel valued in the short term, but the issues that initially prompted the person to consider leaving usually crop up again.”
The Creative Group offers five key questions employers should consider before extending a counteroffer:
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