4% of employers consistently resort to counteroffers
More than half of New Zealand employers are considering counteroffering employees who decide to resign in an effort to retain their top talent, according to a recent survey conducted by Hays.
The survey revealed that while a mere 4% of employers consistently resort to counteroffers when an employee resigns, an additional 50% are open to this approach on a case-by-case basis.
David Trollope, the Managing Director of Hays in New Zealand, emphasized the competitive nature of today’s job market. He explained, “Employers are going to great lengths to keep their valued and high-performing staff. Many see counteroffers as a strategic tool to retain exceptional employees, which can pose challenges for hiring managers in securing top candidates, especially when tempting counteroffers are presented.”
Hays also advised employees who receive counteroffers upon resigning to reflect on the reasons behind their initial decision to leave and whether staying will address those concerns. Trollope noted, “People leave their jobs for various reasons, from seeking fresh challenges and career advancement to wanting to feel appreciated.”
According to Trollope, counteroffers can only achieve long-term success if employers proactively address the underlying issues that drove an employee to seek employment elsewhere. This entails more than merely offering a superficial new job title or a few extra perks. Employers should make substantial changes that inspire, engage, and advance an employee’s career.
“While counteroffers can be effective in certain situations, they should not be relied upon as a primary strategy”
For employers who frequently resort to counteroffers, Hays suggests a shift in approach. Trollope advised, “While counteroffers can be effective in certain situations, they should not be relied upon as a primary strategy. At best, they serve as a temporary fix. Instead, it’s crucial to identify the root causes of staff turnover within your organization and address them to minimize the risk of employees seeking opportunities elsewhere.”
Trollope proposed that fostering a culture of continuous upskilling, providing managerial training, and establishing clear paths for career advancement could enhance job satisfaction and reduce the likelihood of employees seeking new opportunities.
The research drew from a survey of nearly 4,000 respondents, including 1,904 New Zealand organizations and 2,048 New Zealand professionals.