Counter offer: What are the Disadvantages for the Company?

Pablo is a good employee and fulfills his tasks and the goals established by the company. However, he got a new position in the market and asked for the resignation.

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Paul is a good employee and fulfills his tasks and the goals established by the company. However, he got a new position and asked for the resignation. What does the company have to do to try to retain it? A counteroffer With an increase in salary, Paul will be able to continue working with you.

Paul is a fictional character, but the situation is quite common in many companies. If you consider the costs and difficulties of replacing an important professional in the company’s organizational chart, the counteroffer may seem quite advantageous. However, it can bring disadvantages too.

The counteroffer is a global habit

The counteroffer when an employee resigns is a practice adopted by 71% of companies globally, according to recruitment company Robert Half, which consulted 1,000 human resources (HR) managers in eight countries.

It is practiced mainly for fear of losing talent, according to another study by the same consultancy, which indicates that 86% of HR directors in Brazil and Chile are concerned about this problem.

This fear is based on the shortage of trained professionals. “We note the lack of specialized labor and that is why companies have to preserve the best available resources,” says Isis Borge, division manager at Robert Half.

But why then do you only act when a good collaborator resigns? The counteroffer of a salary increase may not be enough, as Fernando Mantovani, Robert Half’s director of operations, points out.

“Even if you accept the offer, the professional tends to leave in the short term, because what led him to request the resignation is almost never just compensation. The other reasons for dissatisfaction continue.”

He explains.

The career plan is an efficient retention tool. “When you have a talent, the company must make clear its career projection within the organization. Many times, the employee does not have a high salary, but remains motivated due to other benefits, “he adds.

Disadvantages and risks of the counteroffer for the company

Find out below some of the possible pitfalls of a counter offer to the employee who requested the resignation, according to Robert Half.

  • Some bosses are not willing to forgive “the fact that the employee thought about accepting an offer from another company and that can generate doubts in relation to their commitment”.
  • Employees who accept a counteroffer usually leave, voluntarily or not, a year later, since the reasons that led to seeking a new job still persist. The salary increase may have been a palliative for the situation, but the other conditions continue.
  • Counteroffers also affect the reputation of the professional, both with the current company and with the potential. The current boss may believe that the search for a new opportunity was a letter used to negotiate the salary and get a promotion.
  • It is common for the company to make many promises of improvements, but it is also common that the same promises are not fulfilled and in the short term the professional is frustrated.

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