In this episode, we dive deep into the tricky world of counteroffers. Should an employer offer one to retain a resigning employee? And if you’re the employee, should you ever accept? The data and real-world experiences say no. We explore both sides of the coin—what happens when managers make counteroffers, and why employees often regret accepting them. Tune in to find out how counteroffers affect trust, morale, and long-term satisfaction, and why both employers and employees are better off avoiding them. If you’re navigating a resignation or trying to retain top talent, this episode is for you!
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• 7 min
The Counteroffer Dilemma: Why Neither Employers Nor Employees Should Say Yes
IT Staffing Insights
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In this podcast episode, listeners will gain key insights into the dynamics and pitfalls of counteroffers from both an employer's and employee's perspective. Here's a breakdown of the key learnings:
For Employers:
- Broken Trust: Listeners will learn that when an employee hands in their resignation, it signals a deeper shift in the relationship. Offering a counteroffer may seem like a solution, but it doesn't resolve the underlying breach of trust. Employers should understand that an employee's readiness to leave can't be undone with just a financial incentive.
- Surface-Level Fix: The episode emphasizes that salary is rarely the core reason an employee decides to leave. Managers will discover that counteroffers often only address symptoms like pay, without solving deeper issues like lack of growth opportunities or dissatisfaction with management or company culture.
- Negative Impact on Morale: Employers will learn about the risks of creating a precedent where employees believe they need to resign or threaten to resign to receive better offers, which can foster resentment and a transactional atmosphere within the company.
- Perception of Leadership: The podcast highlights how relying on counteroffers reflects poorly on leadership. Employers will understand that strong leaders are proactive in offering development and growth opportunities before an employee reaches the point of resignation.
For Employees:
- Long-Term Outcomes: Listeners will discover that accepting a counteroffer often leads to short-term satisfaction, but research shows that up to 90% of employees who accept counteroffers leave within a year. The root causes of dissatisfaction typically remain unresolved.
- Trust and Motivation: Employees will learn how accepting a counteroffer can erode trust in both directions. They may question why they weren’t offered better pay or a promotion sooner, while employers may view them as disloyal or likely to leave again.
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