About Me

Colleen Gillis has been recruiting many years, working with national corporate organizations as well as small independent operations. Her expertise on the hiring climate in Canada, best candidate pratices, and employment standards have been a valuable resorce for candidates searching for the next step in their career.

Friday, May 07, 2010

Counter-Offers

Let's examine the idea of counter-offers.

If you're a shinning example of the perfect employee, at some point, you're going to quietly explore your options in the hospitality market. Perhaps you'll contact a recruiter so as to ensure your interest is kept confidential - always a good choice! But what if this exploring leads to a first interview, then a working interview, and then a third? And in due time, you receive an extremely attractive job offer. Do you accept straight away and cheerily return to your current employer with a letter of resignation?

You might be surprised when your boss reads this resignation and implores you to postpone a final decision for a day or two. In a mere few hours, this executive returns and presents you with an even more attractive counter-offer. "We simply can't afford to lose you," your boss explains.

Who knew? And more importantly - what do you do now?

Before you start wishing you had such "problems", let me mention that because of marketplace demands, it's primarily highly qualified managers and executives that are more likely to face this particular conundrum.

There are many legitimate reasons to leave a position for greener pastures...perhaps the company has executed it's expansion plans a couple years ago and is now in maintenance mode, with no fresh challenges on the horizon. Or perhaps a training budget has been slashed to bits - thwartying your intention of upgrading your skills. Or perhaps you just learned the $15,000 yearly bonus you were counting on isn't likely to materialize. Bummer.

So, hence the passive career search for new positions....the terrifc offer....and impending resignation where your boss says, "Tell me what's wrong here, and I'll fix it. But you have to promise to stay. And by the way, here's more money."

Perhaps you should accept the offer, but that won't rectify all problems. Think about your reasons for wanting to leave in the first place. Let's review the situation and consider the following worst-case scenarios that might play out if you decide to stay with your employer.

You're action can change the culture of your organization.

A resignation is the business equivalent of holding your boss at gunpoint: "Give me what I want, or I'm history." The counter-offer is the equivalent of your boss handing over cash, a promotion, less travel or more time off, and putting your gun back into its holster.

But the incident isn't over. In fact, it may never be. You have upset an apple cart and provoked a panic-buy. Those apples can never be stacked the same way, and everything, including the company's pecking order, is now different. Passive aggression and veiled hostility might arise later from some unexpected sources.

If co-workers hear of your new title and/or perks, a new dynamic will develop. You won't exactly be the most popular guy or gal on campus. However minor your perks, don't underestimate how little it takes to make co-workers angry; inequality within the ranks is lethal. If you decide to stay where you are because it is familiar, you might be surprised. By accepting the counteroffer's perks, that familiar office dynamic will become foreign.

You'll raise the stakes.

Your acceptance of a counteroffer will change expectation levels - both for your boss and for yourself.

After bestowing rewards, it is human nature for your boss to expect more from you. You'll be held to a higher performance standard, which you might also hold yourself because of guilt from stirring up muddy waters. Your every misstep will be scrutinized, and every minor error in judgment will be magnified. In other words, you'll earn every penny of that increased salary and every minute of that family leave time with your blood, sweat and tears.

You won't be trusted.

You're no longer a team player, but someone who, first and foremost, looks out for No. 1. You've already stated in effect, "I don't really want to be here." Because you've broken the loyalty oath and held your employer hostage, you'll be henceforth viewed as less than committed. Your allegiance also will be compromised in your own mind; something about the job just won't feel "right."

Perceived lack of loyalty in addition to co-worker resentment and an employer's feelings of disempowerment could lead to a short-lived position. I've witnessed many workers who've happily accepted counter-offers in winter only to leave by the next summer. Unfortunately, upon leaving this upheaval, the employee no longer will receive a good solid reference. S/he more than likely will receive a two-word negative response, if any.

Accepting a counter-offer isn't always a bad decision, but as a professional recruiter, I'd be remiss if I didn't urge a very close look at the possible pitfalls. My ultimate goal is seeing candidates happy and successful in permanent placements, whatever and wherever those might be. So I'd also encourage a talk with the boss before you start shopping around, rather than after. Address your misgivings and dissatisfactions early; give him a fair chance to rectify them. It's quite possible that nothing will change - but be assured that you haven't wasted your time.

You've called the boss' attention to the situation in an honest, straightforward way. You've acted with integrity while gaining the assurance of knowing how much you're truly valued - without jeopardizing your career, your economic stability or your positive relationships with peers. And without pulling out the verbal equivalent of an Uzi.

What's more, if you ultimately decide to leave the company for a warmer climate, your boss will be able to accept this and not be suprised.

2 comments:

  1. I agree with this philosophy and have lived by it for years with excellent outcomes. Honesty and openness is always the best practice.

    ReplyDelete
  2. Yes, in life in general, a good practice by which to measure your actions!

    ReplyDelete