Why Counteroffers are a Horrible Retention Strategy (And What to Do Instead)
During a recent conversation I had with a colleague and VC powerhouse, I heard something that seriously blew my mind:
In just the last month, five accepted job offers with established start dates were on the table with their portfolio companies for VP’s of Sales. And they all blew up in the 11th hour due to counteroffers from the candidates’ current employers luring them to stay.
Each hiring company was left in disarray and scrambling to put the pieces back together while figuring out how to hire while recouping the lost time — and they were already struggling due to not having the right VP of Sales in place.
But guess what?
They’re not the only ones who will be feeling the repercussions of these dreaded counteroffers.
Know why?
Because counteroffers appear like shiny miracle workers on the surface, but more times than not, they spell D-O-O-M for employees and their employers alike, as you’ll learn in this guide.
I’m here to help and will be diving into why counteroffers are horrible for retention, what to do if you’re faced with this situation, and nine tips to help prevent them from striking.
Let’s jump into the brass tacks, shall we?!
The Cold Hard Stats On Counteroffers and Why They Rarely Work for Retention
I get it, with 15+ million (and counting) people quitting their jobs since April, it’s a tempting strategy.
Counteroffers are merely a fear-based reaction to an all too familiar situation that happens far more often than they should.
Either executives really can’t stand to lose their employees, or they’re only biding their time until they can hire someone to replace those that were ready to leave.
In the end, it really doesn’t matter why employers take this route for retention.
The counteroffer strategy rarely works.
