Counter Offers – Delaying the Inevitable

Happy employees do not leave their jobs. If they resign it is often due to receiving an increase in salary or promotion – and who can blame them for wanting to improve their lot in life. In some cases the employee may be leveraging for a pay increase, unfortunately this happens. If they are unhappy working for your company and decide to look for another job rather than try and resolve the issue with you, then your counter offer is only delaying the inevitable.

In our experience, employees receiving counter offers from the employer usually end up leaving within six months. The counter just gives the employees more time to search for a better opportunity.

A point in case
Atarid was engaged to identify a replacement for a Regional Manager who had resigned. Atarid referred several candidates, one of whom was offered the position, which was rescinded as the RM accepted the company’s counter and remained with the company. The RM left within months of the counter. The company missed out on an outstanding replacement candidate and had to start over.

Excellent Employees are Not Terminated
Another client engaged us to conduct a confidential search to replace a Vice President (VP). After presenting several candidates the company identified their number one choice. At offer stage, the President decided to give the incumbent a ‘second chance’. With no significant improvement in the VP’s performance the company was searching for a replacement within the year.

Companies do not terminate excellent employees. The decision to dismiss is never taken lightly.  Of course, there are policies and procedures that must be followed, but when a decision to terminate has been reached, bite the bullet and let them go.

Low Ball at Your Peril
Having decided on $150,000 as compensation, do not low-ball the candidate at offer stage. We all agree that there is no point in interviewing candidates who are way out of the salary range or those with unrealistic expectations.  If you decide to interview a candidate on the basis that he/she will not accept less than $150,000 then making a low-ball offer of $140,000 in the hopes that the ‘package, bonus etc.,’ will make up the difference is a very risky decision. It will not. What it is guaranteed to do is give your company a reputation of (a) not taking professionals seriously and (b) low-balling salaries.

Death by Due Diligence
In the current super-competitive candidate market all good talent is employed. Candidates are not actively looking around. When a recruiter brings a candidate to the table to consider your role/company, the candidate is now curious and of  the mindset to potentially explore other opportunities. Candidates are ultra-selective in a hot job market and if it’s taking four weeks to go through due diligence to make an offer then the candidate will be gone. Companies making job offers within a week at the outset are successfully acquiring talent.

Atarid has been providing experienced, qualified property management industry professionals to employers nationally for 10+ years.  For a confidential discussion Contact Atarid