Counter offers: Are they worth it?

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While employers like Facebook, Google and Twitter regularly attempt to outbid competitors by offering million-dollar carrots to retain staff, making a counter offer may not be worth it according to new research.

In a recent survey conducted by Launch Recruitment, it was found that of more than 4,000 professionals who participated, 70% reported actively looking for new opportunities in 2012. The results were quantified by dividing the respondents according to their level of seniority, and it was found that from entry level employees to senior staff, remuneration ranked last among their reasons for moving elsewhere.

Why do people quit? 

  CxO / GM / senior Mid level Individual contributor 
Ranked top Company culture (32%) Career progression (23%) Career progression (26%) 
Ranked 2nd Career progression (17%) Work / life balance (22%) Work / life balance (23%)
Ranked 3rd Work / life balance (16%) Company culture (19%)  Company culture (18%)
Remuneration 5th (7%) 4th (16%) 4th (17%) 

While retention remains a top priority and challenge in the year ahead, Rebecca Wallace, managing director at Launch Recruitment, said making a counter offer is only a short-term solution.

The results also revealed that the more senior the position of the departing employee, the less important remuneration is to them, and the less likely a counter offer will work at all.

Because remuneration ranks relatively low compared to other areas of importance, Wallace said organisations need to get more creative in how employees are recruited and retained.

So what’s going to make people stay this year?

Why do people stay ?    
  GenY GenX Babyboomers
Ranked 1st Career progression (39%) Company culture (25.5%) Company culture (28%)
Ranked 2nd Work / life balance (18%) Career progression (25%) Work / life balance (20%)
Ranked 3rd Company culture (17%) Work / life balance (21%) Career progression (15%)
Remuneration 4th (14%) 4th (18%) 5th (10%) 

Source: Launch Recruitment


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