Do you have an employee’s notice sitting on your desk? Are you about to lose a valued member of your team? Are you wondering what to do from here?
We understand having a valued employee hand in their notice can feel disheartening to say the least. No doubt you have spent a significant amount of time and energy investing in them over the years and have seen them develop into the professional they have become. You may be considering your options, asking yourself what is best, do you rehire someone else, or make a counter offer?
Wanting to keep your current employee can be incredibly tempting and therefore making a counter offer can seem like the easiest solution. After all, your employee already knows your team, your company and their role inside out. Well, research states that you will actually be worse off in the long run.
Believe it or not, 80% of candidates who accept a counter offer leave in 6 months and 90% of candidates will have left within 12 months. Generally speaking, if an employee is prepared to take on the application process elsewhere, they will have become disengaged with their work and not have the same commitment to the company they once had.
Often a counter offer of a salary increase (or other benefits) simply acts as a temporary fix by plastering over the cracks. It appears to solve all the problems and make them want to stay, but the issues which served as their motivators to leave are likely to still remain.
Research has also shown that 50% of candidates who have accepted a counter offer have begun job hunting again within 2 months. Therefore, it is more financially beneficial to you in the long term to rehire rather than make a counter offer of a higher salary – and then potentially still rehire!
In addition, you need to be aware of the effects this will have on your team. Having an employee who is now detached from their role, staff morale and productivity is inevitably going to take a hit. Are you prepared for this potential knock on effect? By not making a counter offer, you stay in control of your team and morale. If you do decide to make a counter offer, we would advise that you tread with caution as the statistics (and our experience) show it almost certainly never works.
If this blog sounds familiar and you are faced with needing to find a replacement, don’t worry. Cherry Professional understand the importance of your time and are on hand to help to refill any finance or office based roles. With almost 10 years experience of monitoring the local job market and finding the perfect talent for our clients, we know we can help you. After all, we did not become the highest rated employment agency in the East Midlands by chance!