Counteroffers

For every candidate who receives an offer of employment from a competitive company, there is the possibility of a counteroffer from their present employer. While the offer may be flattering, acceptance of a counteroffer can be career suicide. In today's market where skilled labor is in short supply, it is much easier for a company to try to keep someone there, than to train someone new. Studies have shown that when employees do accept counteroffers, typically 90% of the time they leave their job less than six months later. Counteroffers can have a devastating effect. Counteroffers can come in one or all of the following categories:

Money
If an employee accepts a counteroffer for more money, the same conditions that caused him to begin his search in the first place will still exist. If he was dissatisfied with some aspect of his job or working conditions, he still will be. The only difference is he will be dissatisfied at a higher rate of pay. Although money is always a motivating factor; it is not usually the only one nor even the most important. A company that routinely underpays its employees will continue to do so.

Promises
Companies may make promises to keep an employee. Typically a manager will know what motivates the people in his department and will use this knowledge to entice one to stay who may be thinking of "straying." The promises may be of an impending promotion or leading a special project in the future. Unfortunately, if the employee believes the promise and chooses to stay, he will probably be back on the market in a few months when the promise fails to materialize.

Guilt
Guilt is used when companies realize that their employee can be manipulated by calling his loyalty in question. The employer may cite his own unselfish efforts in training the employee, the indispensability of the employee or the difficulties resulting from the employee leaving.

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