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The Counter Offer – A Clients Perspective

Few clients will want to lose a valued member of staff and often paying them more seems like a cheap and time saving alternative to having to replace. However, the decision to counter offer should not be made without due consideration. Before we begin its important to take a look at the implications of losing a member of staff


During the notice period and the time it will take to train a new starter the quality and volume of work produced will inevitably drop. Can the business cope with this?


When someone leaves a business their peers are often effected which can have a negative impacts on team dynamic.

Peer Influence:

If someone decides to leave it’s because they are unhappy with an aspect of their current employment. In any business people talk and that negative feeling could easily spread and cause further problems.


When the employee leaves the business you potentially loose years of experience, be that industry specific, product specific, knowledge of company processes, role specific etc


It’s going to take time to recruit a replacement, sifting through C.V’s, interviewing people etc. How will this affect the business and indeed the person whose shoulders this falls on


Advertising costs, the increased salary cost (due to market conditions) to hire a more expensive replacement are the tangibles but often there are unseen costs, time for example.


Is your employee going to a competitor? How will that affect the business? Will you lose business because of this?


How does this affect the businesses image in the local market? If staff turnover is high it will make it harder to attract the best talent in the future.

It’s obvious that as a business you should have things in place to ensure you don’t get to the stage of an employee handing in their notice. If you do and you decide to counter offer be sure to find out the exact reasons and motivations behind the decision and try to offer ways to match / /improve those reasons and motivations to ensure the employee feels comfortable that things can change and staying is a real option. Remember it’s not all ways about the money!

Once you feel confident about the reasons and feel they can be successfully addressed work through the potential resolutions with the employee until you both feel comfortable that issues are resolved and solutions work for both parties.

As I mentioned in my last post a high percentage of employees that stay after a counter offer often leave within the first year so a structured review process is essential.

Whilst it often works to keep a member of staff that wishes to leave sometimes letting them go can be a positive situation so don’t be too quick to make that counter offer.