Thursday, March 13, 2008

Counter Offers

Counter Offers

For those who haven't had the pleasure of experiencing a counter offer, it is one of the most common scenarios played out today to keep an existing employee from leaving for a new employer. Counter offers come in all shapes and sizes - ranging from offers of more money to title promotions, to leased cars and other benefits.
The idea is basic: companies entice departing employees by offering ups and extras. They often tempt the individual with an offer of a promotion, or prey upon their insecurity (ex. fear of the unknown, feelings of guilt, etc.) by making a more emotional appeal. The conversation can open with anything from, "How much will it take to get you to stay?" to "We haven't given you the recognition you deserve, please give us another chance." The present employer will then come up with promises that are seemingly lined with gold. Are they? And furthermore, should employers use them?
In a survey done by the Wall Street Journal, over 50 percent of individuals receiving counter-offers after turning in their resignations accepted them. Within eighteen months, 93 percent of those accepting counter offers had left, some voluntarily and some fired. All of the remaining 7 percent were actively seeking new employment. All in all, the reasons the employee had for searching for new employment in the first place do not go away just because they received more money or a promotion.
Given these alarming statistics, many companies have policies against making counter offers. A national survey recently conducted by The HR Team, Inc. of human resources executives (at companies with more than 50 employees) found that less than 20 percent of respondents even make counter offers. For the minority that does make counter offers, the criteria is dependent upon: the employee's contribution to the company, the value of the employee, the skills of the employee, the position, and the employee's previous performance.

Leave your employer on a positive note. Your moving on does not have to be a time for long faces. After all, you have just won an opportunity to advance, an opportunity for which you owe your employer sincere thanks. Thank your colleagues, too, for their help in preparing you to move onward and upward.

If you have given your best to the job, you will be missed – especially by those inconvenienced by your leaving! Let them know that you intend to assist them in whatever ways you can. By showing your boss and firm due respect, you encourage future support you may someday need.

When you resign, keep your conversations simple and concise. The more you say, the more questions you may have to answer. Avoid lengthy discussion about your new opportunity with your old employer. Typically, your resignation creates extra work for others.

Chances are, your boss will be caught off-guard by your resignation, and will not be able to listen clearly to your explanations due to concerns about the sudden challenge your leaving presents. Because your boss is losing as valued employee, he or she may express negative opinions about your new firm or position. This will only confuse you. You may find yourself having to justify your personal goals and decisions or absorb the personal frustrations of others. If you’re dealing with volatile or vindictive personalities, it may be best to avoid revealing where you will be going.

If you feel you may face a hostile atmosphere, resign at the end of your workday so that you are no longer on company time and are in control of your schedule. Try to schedule any discussions for the following morning when everyone can face your departure after time to absorb and reflect on the news. If you have to defend yourself at this first meeting, or if things begin to get out of control, ask to re-schedule the meeting for a more appropriate time.

Hope this information helps you in your steps toward your new Career change.

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