Counter Offering & Reasons Why Employees Leave
When an employee decides to leave a job, the first thing that comes to mind is usually money. However, the truth is that there are quite often more compelling reasons for leaving than a higher salary. In this article, we’ll look at why employees leave and why accepting a counteroffer from your former employer might not actually be the best option when you’ve chosen to move on.
Money Matters, But Company Culture Is King
While pay is an important factor to consider when it comes to your career, it is not always the primary motivator for leaving a job. A toxic workplace culture, according to a Harvard Business Review study, is the leading cause of employee dissatisfaction. Lack of communication, micromanagement, favouritism, and a lack of work-life balance are examples of such issues.
Employees who feel undervalued are also more likely to experience burnout, stress, and even health problems. While a pay raise may temporarily alleviate these problems, it does not address the underlying issues. And, if an employee is only there for the money, they may not be fully invested in their work, resulting in lower productivity and engagement.
I recently experienced this first-hand with a candidate who kept me hanging for 3 months, to then tell me he had received a counteroffer from his employer and was going to accept it. While it was a generous offer, I had to reiterate why he was applying for new roles in the first place. Unfortunately, he didn’t realise his worth and level of experience, and while he received a £20K salary increase offer, this would only be a temporary fix, and the underlying issue wasn’t going to be resolved. A recent survey from Robert Half, showed that 40% of workers who accepted counteroffers to keep them from leaving for another job said they regretted it.
Employees who ‘fish’ like this are not only wasting their own time and stunting their career potential but are also wasting both the valuable time of the recruitment company and the other employer – which just isn’t on! In fact, a recent article on thehrdirector.com, found that one third (34%) of those who accepted a counteroffer from an employer had left the organisation within six months, and three-quarters (74%) had left within a year. Employees aged under 35 will move on more quickly, with nearly half (47%) leaving within six months of accepting a counteroffer.
Real Reasons Why Employees Leave
Aside from poor company culture, there are also a number of other reasons why employees may decide to leave a job. These can include but are not limited to:
Lack of opportunities for career advancement: If an employee feels trapped in a dead-end job with no room for advancement, they may begin looking for other opportunities.
Poor management: An ineffective, unsupportive, or abusive manager can create a toxic work environment.
Workload and stress: Feeling overwhelmed and stressed at work can lead to burnout and a decline in mental health. A recent survey from Metlife UK, found that 61% of people surveyed had recently left or are actively planning to leave their jobs cite mental health as a reason. More than 10 million workers in the UK have called in sick because of feeling burnt out, potentially costing UK businesses more than £700m a year.
Job dissatisfaction: An employee may not enjoy their work or believe they are not making a significant contribution, which in my experience tends to leave you feeling flat and lacking in confidence.
Personal reasons: Life events such as relocating to a new city, commuting time or starting a family may prompt a decision to leave one’s job.
Values and cultural mindsets: Key areas for employers to focus on as part of their retention strategy to hold on to their best talent.
Work life balance: the option of hybrid working or converting to a 4-day working week has become a key factor for existing and new employees. Having that extra day to yourself makes a big difference to your working week.
Why You Should Think Twice About A Counteroffer
When an employee resigns, it’s actually quite common for their employer to make a counteroffer in an attempt to keep them. And if you’re actively looking for a new role, you should expect this to happen, especially if you’re a valuable part of the team. While this may seem like a good idea in the heat of the moment, there are several reasons why accepting a counteroffer may not be the best decision.
Firstly, it’s important to consider the reason why you decided to leave in the first place. If it’s due to issues such as company culture or poor management, a salary increase may not solve the problem. In fact, it can often lead to resentment from both sides and could damage your professional reputation.
Counter offering can also lead to problems between employees and employers further down the line too. Your manager or divisional director may consciously or subconsciously overlook you for a promotion or big project, as you have expressed that you’re not willing to commit to the company or stay in the role for the foreseeable. And this can have a negative impact on your career growth. Plus, it doesn’t do well for a positive workplace dynamic either, as they may see you as disloyal or untrustworthy.
Last but not least, you really need to think hard about what doors you may be closing for yourself by accepting a counteroffer from a current employer. While starting any new role can feel daunting at first, a new company, a new set of colleagues, and new challenges can help you develop in both your work and personal life. You may meet people who share the same interests as you and become lifelong friends. You may unlock opportunities to travel overseas or network with industry leaders. By staying stale in your career, you are doing yourself no favours, so be true to yourself and your goals and step outside your comfort zone.
