Back Office Staffing Solutions Survey Shows Accepting Counteroffers Leads to Better Employer-Employee Relationships

Payroll and Compensation ManagementBack-office softwareNews

By HRTech News Desk Last updated Oct 27, 2021

A Survey of 2061 Full-Time USA Employees Reveals That a Majority of Employees Who Receive a Counteroffer Accept It and It Has Lead To a Better Relationship With Their Employer

It turns out that accepting a counteroffer is not the kiss of death. 38% of respondents say they have received a counter offer at work and of those who received them 73% actually accepted it, according to Back Office Staffing Solutions Employee Counteroffer Survey. In fact, 94% of those surveyed say their relationship post-counteroffer with their employer was either the same or better, with 59% stating that the relationship was either better or much better. Only 5.5% claimed that it was either worse or much worse.

Additionally, after accepting a counteroffer, they ended up staying with their employer for an extra 3.5 years on average. Given that the average tenure per the BLS in the USA is 4.1 years, accepting a counteroffer does not seem to decrease ones’ tenure. “Many websites and blogs, without any viable sources or substantiation, have long claimed that accepting a counteroffer almost surely leads to a quick exit. A common claim is that 50% of candidates who accept a counteroffer end up leaving within 6 months”, says Neil Lebovits, CEO of Back Office Staffing Solutions. “Some claim that 80% of candidates who accept a counteroffer will leave within 12 months, and that 50% of them are back on the job market after two months” A majority of claims source a non-existent article a few decades ago in the Wall Street Journal. Lebovits goes on to say that “If you try to find this article on the internet, you will never find it nor any published study that shows any of these things to be true. It was also discovered that the vast majority of employees are more than happy to receive a counteroffer, with 83% saying they would either likely or very likely entertain one. On top of this 38% of employees surveyed say that have received a counteroffer at some point.

Tenure varied by age group, with those 18-29 year old averaging 32 months, outlasting the national average according the Bureau of Labor and Statistics. Those aged 30-44 averaged 34 months and those 45-60 averaged 45.4 months. There was no statistical difference between males and females and all questions surveyed.

As the President of a $1 Billion fortune 500 division executive recruiting firm with thousands of employees, Lebovits gave out many counteroffers over 20 years. “Almost all of them worked out great. I never questioned their “loyalty”, nor held it against them. Afterall, I saw the light and understood where they were coming from”

However, taking a counteroffer is not always the best career move, says Lebovits, who was also an executive recruiter for 20 years. “Afterall, most employees give notice for a reason. Very often, a counteroffer does not address the main reasons why they wanted to leave in the first place. The survey shows that accepting a counteroffer does not seem to increase longevity, so it’s quite possible that they are giving up a faster trajectory elsewhere. Often change is good for an employee and gives them a new sense of excitement and motivation. Before even interviewing, one should anticipate that a counteroffer is coming and should truly understand their main motivation for leaving in the first place. Does the employer truly see their true potential? If the counteroffer comes in the form of compensation, it’s critical to realize that money was most likely not the main motivator for them wanting to make a career change and won’t help the core issue. If money is their main motivator, then they should first have a candid discussion with their employer and address that issue head on. If one does stay on, at least they don’t have to worry about being show the door and can feel comfortable that their relationship might be better, at least for a few years only.

[To share your insights with us, please write to sghosh@martechseries.com]