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Counter Offers in 2022
Mark Smith: We are now joined by Kirsten Garrett to get us there though, Kirsten's put together a quick video. Let's roll the tape. Thanks, Jacob.
[Video plays]
Kirsten Garrett: More counter offers have been made in 2021 and 2022 in the last decade. Even though retaining a high performer who has just resigned may seem like a good idea at the time, over 89 percent of counter-offered employees who accept and decide to stay in their organization leave in subsequent months, as their resignation often highlights issues relating to their job as well as to the running of the organization. It is important to remember applying what we call a band-aid solution to the situation won't overcome the more ingrained issues at hand. To make a counteroffer successful in the long term, organizations and hiring managers need to dig deeper and identify the real issues at heart.
From a recruitment perspective, identifying candidates at a higher risk of accepting a counteroffer, communication is key. Connecting at every stage of the process from phone screen to interviews to the role brief, to feedback on the interviews and job offer, hiring managers need to communicate with their candidates to ensure they haven't changed their minds along the way.
When you are recruiting, you need to build an employee value proposition which outlines benefits your business offers, progression opportunities, examples of careers forged across the business, and personalize all this for the candidate. Personalize your attraction strategy to each candidate and be ensured to include elements of diversity, equity, and inclusion, training and development, leadership style, and support and trust from management. In addition to remuneration and flexibility, these factors feature high on the list of what matters most to job seeker.
[End of video]
Mark Smith: So, very serious in your video. Can I just say, yes, that was very early this morning. I jumped in front of the camera. So thanks for putting that out there. Counteroffers, it's a big deal at the moment. So, what's your experience with counteroffers right now?
Kirsten Garrett: I'm going to actually put my hand on my heart and say, most candidates that we are putting job offers out to are being counter-offered in their current employer. And there's no rhyme or reason as to the level of candidate, the industries they're working in, or even how long they've been with a business. You'd usually expect someone who's been there a long time to maybe be a more highly valued employee, therefore the loss is going to be harder to fill that gap, that intellectual capital that's going to walk out the door. There's no rhyme or reason, and it's even happening in our temporary and contract market. As you know, I focus on the perm side. Candidates are coming in with a list of requirements, an arm and a leg law. They want answers from their potential employer. They're asking for things in addition to just the usual, the money and the flexibility. They're taken as a given. They want to know what you're going to do for their career. They want an interesting one in today's market, and we're seeing it here in the CBD. Candidates want to know what companies are doing to encourage people to come back into the office. Why is it worth my while to come and work in the office instead of just ticking along from home as I have been for the last two years? It's a very, very interesting market, and most jobs we are mentally preparing for a counteroffer.
Mark Smith: And so, what advice then do you have for a candidate, say, that gets a counteroffer? What's the best way?
Kirsten Garrett: This sounds counter-intuitive because I'm there to make placements, but I would actually encourage every candidate or job seeker in the market. If you are thinking about making a career move and a job move, talk to your current manager, open the lines of communication before they go into the market because, as I said in my video, counteroffers don't tend to have the staying power that maybe moving to a new opportunity does. In a couple of months' time, you're going to, something's going to be niggling. So, talk to your managers, talk to your HR departments, find out what's there for you, address any issues you might have, address the reasons why you're looking. It could be as simple as I'm looking for a $20,000 salary increase. And in this market, to any job seeker, if that's your sole reason for leaving a business, talk to your employer. They will give it to you.
Mark Smith: Yeah. And if they don't, well then go into the market because then you've already sorted that out and you know that you don't have to even — yeah, absolutely. But talk to your managers.
[Video plays]
Kirsten Garrett: More counter offers have been made in 2021 and 2022 in the last decade. Even though retaining a high performer who has just resigned may seem like a good idea at the time, over 89 percent of counter-offered employees who accept and decide to stay in their organization leave in subsequent months, as their resignation often highlights issues relating to their job as well as to the running of the organization. It is important to remember applying what we call a band-aid solution to the situation won't overcome the more ingrained issues at hand. To make a counteroffer successful in the long term, organizations and hiring managers need to dig deeper and identify the real issues at heart.
From a recruitment perspective, identifying candidates at a higher risk of accepting a counteroffer, communication is key. Connecting at every stage of the process from phone screen to interviews to the role brief, to feedback on the interviews and job offer, hiring managers need to communicate with their candidates to ensure they haven't changed their minds along the way.
When you are recruiting, you need to build an employee value proposition which outlines benefits your business offers, progression opportunities, examples of careers forged across the business, and personalize all this for the candidate. Personalize your attraction strategy to each candidate and be ensured to include elements of diversity, equity, and inclusion, training and development, leadership style, and support and trust from management. In addition to remuneration and flexibility, these factors feature high on the list of what matters most to job seeker.
[End of video]
Mark Smith: So, very serious in your video. Can I just say, yes, that was very early this morning. I jumped in front of the camera. So thanks for putting that out there. Counteroffers, it's a big deal at the moment. So, what's your experience with counteroffers right now?
Kirsten Garrett: I'm going to actually put my hand on my heart and say, most candidates that we are putting job offers out to are being counter-offered in their current employer. And there's no rhyme or reason as to the level of candidate, the industries they're working in, or even how long they've been with a business. You'd usually expect someone who's been there a long time to maybe be a more highly valued employee, therefore the loss is going to be harder to fill that gap, that intellectual capital that's going to walk out the door. There's no rhyme or reason, and it's even happening in our temporary and contract market. As you know, I focus on the perm side. Candidates are coming in with a list of requirements, an arm and a leg law. They want answers from their potential employer. They're asking for things in addition to just the usual, the money and the flexibility. They're taken as a given. They want to know what you're going to do for their career. They want an interesting one in today's market, and we're seeing it here in the CBD. Candidates want to know what companies are doing to encourage people to come back into the office. Why is it worth my while to come and work in the office instead of just ticking along from home as I have been for the last two years? It's a very, very interesting market, and most jobs we are mentally preparing for a counteroffer.
Mark Smith: And so, what advice then do you have for a candidate, say, that gets a counteroffer? What's the best way?
Kirsten Garrett: This sounds counter-intuitive because I'm there to make placements, but I would actually encourage every candidate or job seeker in the market. If you are thinking about making a career move and a job move, talk to your current manager, open the lines of communication before they go into the market because, as I said in my video, counteroffers don't tend to have the staying power that maybe moving to a new opportunity does. In a couple of months' time, you're going to, something's going to be niggling. So, talk to your managers, talk to your HR departments, find out what's there for you, address any issues you might have, address the reasons why you're looking. It could be as simple as I'm looking for a $20,000 salary increase. And in this market, to any job seeker, if that's your sole reason for leaving a business, talk to your employer. They will give it to you.
Mark Smith: Yeah. And if they don't, well then go into the market because then you've already sorted that out and you know that you don't have to even — yeah, absolutely. But talk to your managers.
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Featuring Kirsten Garrett
Season One
Join Mark Smith and people2people team as we bring you all of the hottest job opportunities across Australia. This week, we are joined by Kirsten Garret to take a look at counter offers in 2022 and how to successfully manage them. We will also take a look at some of our urgent jobs across Australia in Fill Jobs Friday.
About our speaker
Kirsten, having enjoyed a working relationship since 1999 with the directors of people2people, joined on people2people’s inception in February 2005. With twenty years’ recruitment experience, Kirsten specialises in the accounting and finance sector. Kirsten’s client are from a broad range of commercial and professional services businesses.
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