Reasons you shouldn’t make that counteroffer.


With digital transformation taking over, near constant disruption hitting all industries and the Future of Work becoming the new normal, competition for in demand talent has become pretty fierce. When a star employee leaves, it can be costly to replace them. So it can be tempting to make a counteroffer that they simply can’t refuse. Here are few reasons why you shouldn’t.

Firstly, an employee will never make the decision to leave a steady job lightly, and have more than likely been thinking about making this change for a while. There could be underlying reasons that don’t involve compensation, such as issues with the corporate culture or a manager. In this case, a counteroffer is a simply a band aid.

Second, you are taking a risk on an employee who has threatened to leave once. There is nothing stopping them from doing it again. Avoid putting yourself in a situation where you have to wonder if your star employee is going to jump ship at any moment.

Lastly, when an employee decides to take a counteroffer, it may actually be all about the money. Using another offer to manipulate a company into paying a higher salary (even if the candidate is worth it), speaks volumes about their character. You don’t want to be in a working relationship built on ultimatums.

Replacing top talent can be a pain in the neck, but it doesn’t have to be. The DAV Resource Centre is your go to when it comes to reducing time to hire and finding that niche talent.  I  +27 11 217 0000  I  +27 83 459 3656  I

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