Accepting a counteroffer? Think twice.
by Ashley Richards of Kaye/Bassman International, Inc. May 9, 2014
As recruiters, we are trained to ask a very important question after discovering a person wants to make a job change. “Is there anything they can do to convince you to stay?” Nine times out of ten, the answer is, “No, there is nothing they can do to keep me.”
So I am always a bit baffled when a candidate accepts a counteroffer. There is something significantly wrong with getting what you deserve, only after you’ve turned in your resignation. You shouldn’t have to wait until you quit to be recognized for your accomplishments, to get promoted or to get a raise.
At the end of the day, all anyone really has is their word. Going back on that says a lot about an individual. The construction industry is much smaller than anyone realizes. Word travels incredibly fast. You’re burning a bridge with one company, and possibly other competitors that you are not aware of yet.
Three years ago, companies couldn’t afford to make counteroffers. Today, companies can’t afford NOT to make them. Companies don’t make counteroffers for you, they make them for themselves. That extra couple thousand dollars that the company throws at an employee in an attempt to keep them, is simply a Band-Aid until they can find their replacement.
Most people don’t realize how much it costs a company to have a position empty and to hire someone new. It is considerably cheaper to keep someone in their position. Employees have a direct correlation to the company’s revenue. No matter what your position is, you are contributing to the profit in some way, shape or form. Companies don’t have a list of people that they could hire as someone’s replacement. That means that they would have to pay to post the job on several career sites or hire a recruiter. In order to find the right candidate, this process can take anywhere from six weeks to several months. Then, when it comes to hiring a new employee, costs are far more expensive than you would assume. According to both REGUS and Inc., it can cost a company up to one hundred and fifty percent of that position’s annual salary. This includes search fees, insurance costs, taxes, and training. Not to mention the hours of ramp up time it will take to get a new employee up to spend and acclimated to the company’s systems and procedures.
So before you decide to start interviewing with other companies, make a list of the pros and cons of your current position and company. If the negatives far outweigh the positives, you need to begin your job search immediately. But if the opposite is true, do yourself a favor and stay put. Schedule a meeting with your manager to discuss your value and the things you’d like to change.
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