Originally posted by ubabenefits.com.
Even though you already have a job, you’ve been interviewing with other companies and have now just been offered a position. This is the day you go to your supervisor or HR department and turn in your two weeks’ notice (you are a professional after all, you don’t just quit). But then, surprise, you get a counteroffer to stay.
While this still happens in approximately 20% of the largest U.S. markets, the stay-put counteroffer may be a dying trend in corporate America. In an article on Society for Human Resource Management’s website shrm.org titled, Stay-Put Counteroffers Can Backfire, CFOs Say, survey data shows that counteroffers can often have unintended consequences.
Furthermore, just offering more money to get an employee not to leave doesn’t address the root issue that made the person want to leave in the first place. Think about that. If an employee truly enjoyed his or her job, yet felt they were underpaid (grossly that is, I think everyone feels they’re underpaid to some degree), surely this employee would talk to their supervisor and ask for a raise rather than go through the effort of finding a new job that they may not like. Most likely, the employee doesn’t like several factors about their position. Plus, offering more money could reinforce the perception that they were always underpaid and, therefore, resent their supervisor and/or company even more.
Obviously, companies need to improve employee retention — especially when it comes to top talent — but that doesn’t mean they can just throw money at people and expect them to stay. Based on the survey in the article, most CFOs have already figured this out.