When it comes to counteroffers, the negotiating tactic is often used for retaining talent, according to a new study.
Careers website LiveCareer recently explored the world of employee counteroffers where they found that nearly 70% of workplaces extend counteroffers to employees. Counteroffers are often seen as a temporary fix for a long-term solution. One Robert Half director recently said that soon after an employee accepts a counteroffer, they’re likely to quit. Either way, it’s an important piece of the workplace and companies are using it to their advantage.
Fifty-seven percent of hiring managers said they extend counteroffers to retain talent, while nearly half (49.1%) said they use it to retain an employee’s job knowledge.
Often times a counteroffer is used to save time by hiring a replacement or even in some cases where it’s seen as a way to save the company money by not having to hire a replacement.
But what about remotely?
For workers doing their jobs at home (or even during the COVID-19 pandemic), 35% of hiring managers said they made a counteroffer to remote employees. While it was once a belief that remote working was the death of a business, the new normal has changed that belief. Although this survey doesn’t take into consideration the ongoing pandemic, nearly 40% of hiring managers said working remotely doesn’t have a good or bad influence on an employee’s chance of receiving a counteroffer. About 30% of managers said it actually increases the chances of receiving one.
Some of the most common elements of a counteroffer include a 10% raise (35%), more vacation time (31%), 5% raise (29%), and role transition (29%).