Counter Offers: The Risks of Trying to Keep Someone Who Has Decided to Leave

Counter Offers: The Risks of Trying to Keep Someone Who Has Decided to Leave

When employees resign, many employers resort to counteroffers in a last-ditch effort to retain departing employees. However, when someone has made the decision to leave, there are often deep-seated reasons behind that choice—reasons that may be too late to address or even beyond an organisation’s control.

Recognising the Decision

When an employee resigns, it is usually not a spur-of-the-moment decision. It often reflects months or even years of accumulated decision-making, which may have a wide range of contributing factors. Whether it’s a blocker in career progression, a change in team dynamics, or changes in personal circumstances, the decision to leave is typically rooted in factors that have been building over time.

Attempting to counter these decisions with a financial incentive or a promise of change may not tackle the core issues and may just delay the inevitable for both parties.

The Underlying Reasons

Employees who decide to leave do so for a variety of reasons. Some issues, like a stagnant career path or a mismatch in values with the organisation, are fundamental and cannot be fixed overnight, if at all. Others—such as personal circumstances or a desire for a new challenge—are completely outside the employer’s control. By the time the resignation is submitted, the cumulative weight of these factors often renders any counteroffer ineffective in truly addressing the employee’s concerns.

The Limits of Counter Offers

Counter-offers may provide a temporary reprieve, but they rarely resolve the underlying problems that prompted the resignation and in many cases, even those who have been successfully counter-offered end up leaving anyway.

Here are some of the risks:

  • Temporary Fixes: A salary bump or improved benefits might be appealing, but they rarely compensate for longstanding issues.
  • Too Late for Change: Once an employee has decided to leave, it often signifies that previous attempts to resolve these issues have failed. At that point, even the best counteroffer might come too late.
  • Beyond Control: Some factors, such as personal aspirations or a desire for a different work-life balance, simply cannot be rectified through workplace adjustments or financial incentives.

Eroding Trust and Long-Term Impact

When an organisation tries to pull someone back with a counter offer, it sends a mixed message. This reactive approach can erode trust—not just with the individual concerned, but also among remaining team members who may perceive the counter offer as a stopgap measure.

Furthermore, relying on counter offers sets a precedent that raises expectations among other employees. If the culture shifts towards the belief that resignations will always be met with concessions, it can destabilise the long-term organisational structure and undermine the credibility of management.

Focusing on What Can Be Controlled

Instead of resorting to counter offers as a quick fix, organisations should prioritise proactive strategies to address employee dissatisfaction before it escalates into resignations. This includes:

  • Ongoing Engagement: Regular feedback sessions and career development discussions can help identify issues early on.
  • Transparent Communication: Building an open dialogue can ensure that employees feel heard, reducing the build-up of unresolved concerns.
  • Cultural Improvements: Investing in a supportive, inclusive, and growth-oriented work environment can mitigate many of the underlying issues that drive employees away.

Conclusion

While counter offers might seem like an attractive option to retain a valued employee, they often fall short of addressing the deeper, more complex issues behind the decision to leave. Recognising that many resignations are the culmination of factors either too ingrained or beyond control is crucial. Rather than relying on reactive measures, organisations should focus on creating an environment that addresses these concerns proactively, ensuring that employees feel valued and supported long before the decision to leave ever arises.

CJPI Insights
CJPI Insights
CJPI Insights Editor
www.cjpi.com/insights

This post has been published by the CJPI Insights Editorial Team, compiling the best insights and research from our experts.

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