Over the past few months, I’ve seen a real increase in counter offers. Given that unemployment rates in BC are at historic lows, particularly within the Vancouver tech sector, it is no surprise that counter offers are on the rise.
Now, you might be thinking, what’s a counter offer? Basically, this is when an employee tells an employer that he or she is resigning to take a new job, with a different company. Then the current manager scrambles to put together a compelling ‘counter offer,’ to entice the person to stay.
The most common form of counter offer, is when the current employer offers the worker more money to stay. Sometimes they’ll promise a new job title, a promotion, or a new project to work on. Or sometimes it is a combination of all of these things. More money, and more responsibility — all of this sounds great for an employee, right?
Well there is a downside. In most cases, an employer makes a counter offer to protect their own interests, rather than that of the employee. In other words, the employer does whatever it takes to keep the employee for a bit longer. The employer’s goal is to keep the current projects moving forward, and in most cases, to buy some time to find a replacement.
All of this can be quite awkward, and emotionally taxing, for an employee. Especially when an employer uses emotional leverage to ‘ask’ an employee to stay.
Employers, whether consciously or not, may say things such as “well, coincidentally, we were already thinking about giving you this promotion” or “thanks for making us aware of your value in the marketplace, and now that we know, we can match it”
In most counter offer situations, however, it is a case of ‘too little, too late.’ Workers will often question the timing of a manager’s new found interest in them, and often wonder why it took a resignation to spur on action.
And perhaps most importantly, factors such as extra money, or even a new job title, do little to address the underlying reasons of why a person may have been looking for a new opportunity in the first place. If the employee’s reason for leaving is influenced by a lack of learning opportunities or by a boss who doesn’t share their values, more money won’t do much to remedy the situation.
When people come to me for advice on this topic, I often recommend to examine the original reasons why a person started looking for new roles. Why even look in the first place?
Perhaps it was a lack of upward mobility, or an outdated technology stack, or a difference of opinion with company leadership. Often by revisiting these reasons, the likelihood of a counter-offer being accepted or rejected becomes more clear. In some cases, it is possible for an employer to fix a situation with a few strategic tweaks (for example, to use a tech example, finally migrating off VB6 and ASP classic!). In many cases, however, there is plenty of talk, and little in the way of real change. And as I like to say, actions always speak louder than words.
So despite the temptation for a worker to stay put, and take the extra perks, a counter offer is often merely a reactive, ‘band aid’ solution. And in many cases, a counter offer does little else than to shine a light on the misalignment of interests, between employee and employer.
Nathan Wawruck is a recruiter with Robert Half Technology. He has been doing tech recruitment for over a decade, and still loves every minute of it. If you are interested in getting in touch with Nathan, check out his LinkedIn page.