The downside to clients and candidates engaging in counter offers has been discussed for many years. Today, with businesses looking leaner and the employment market continuing to tighten, we are seeing more and more counter-offers. Hence, I want to underscore the consequences that results from making or accepting a counter-offer.

Three reasons not to give a counter offer:
The numbers do not lie. Depending on your sources, eighty to ninety percent of the candidates who accept counter-offers either have left, were fired or are attempting to leave again within six to twelve months of accepting the counter-offer. The odds are stacked against you. Your employee will most likely continue to look for a new job and potentially poison your culture. Wish them well and thank them for their contribution.

What message are you sending are you sending your employees? Threaten to quit and get a raise. You have demonstrated little faith in the remaining team members or in your ability to recruit and fill the role. You appear desperate.

Relationships. Relationships are built on trust. The trust between you and the employee has taken a big blow. Not to mention the effects on the rest of the company. Your relationship with this employee will forever be plagued by F.U.D. (Fear, Uncertainty and Doubt). F.U.D. and success are mutually exclusive.

Companies are doing more and more with fewer employees. Couple this with the scarcity of talent and a counter-offer can be tempting for an employer. The allure of the counter offer is like a mirage in the desert – a desperate situation where the lack of talent is represented by the desert and the mirage is the false sense of a solution. Avoid the situation entirely by spending more time listening to your team, give them the resources they need to succeed and recognize them for their good work.

Next post…Three reasons not to accept a counter-offer.