If an employee hands in their notice unexpectedly, it can be a complete shock. They may be a team member that always excels or brings something extra to the team. You might be filled with sadness or worry about the thought of them leaving.
Is this the point when you should give a counter offer? Could you offer them a higher salary or the same salary that they have been offered elsewhere? If they clearly state that their reason for leaving is the money, should you offer them more money and give a counteroffer?
There are loads of evidence and studies out there that show it costs more money to recruit new talent that retain existing talent. By offering more money you could feel that you are saving money as you don’t need to recruit and train new talent. However, how long will that talent stay?
Here at Point Recruitment, our experienced recruitment consultants would definitely recommend that you think twice before rushing to make a counter offer.
Research shows that 80% of employees will leave a business within 6 months of accepting the counter offer. Further to this, a huge 90% of candidates will leave within 12 months of accepting the counter offer.
The thing with a counter offer is that it is a short-term fix. The candidate isn’t happy. While the pay rise may satisfy them for now, they will soon be looking again as they’ll remember it’s not just about the money. There was a reason they were looking elsewhere.
A candidate resigning on good terms is brilliant for your business. You can find out why they want to leave. Take the time to complete an exit interview where you find out what they liked, loved and disliked about work. You can then use this insight and feedback to improve the workplace for other employees and new candidates. You don’t have enough time to make it better for this candidate, but you can make it better for others.
Have you had an employee resign and quickly need to find another candidate to take their place? Call us now. We will take the time to understand your vacancy and find the best candidate to suit the job role and the company culture.