A sign of more prosperous times, but some points to be aware of
Whilst the rise of the counter offer is a sign of the market improving and becoming more candidate-led, it is littered with pot holes for both employers and employees.
As we all know only too well, recent economic challenges have had far reaching consequences for many in the property industry at all levels. With redundancies being rife, recruitment freezes and no graduate intakes there are now far fewer professionals at many levels. We are finding that in particular that there is a worrying decrease in the number of individuals with 6 years of experience or less – clearly this is down to companies not being able to recruit graduates due to a lack of work and/or confidence in the market and in some cases having to let junior people go.
Now that the market is showing some sustained signs of improvement and most companies have gained in confidence it’s a battle to coax individuals from a relatively small pool to leave the company they’ve worked with over the last few difficult years. And when individuals decide that in fact they are ready for a change, those companies will often break all of their own rules about salaries and bonuses in their bid to retain their talent and to avoid the considerable headache of trying to find a replacement.
If you are reading this and you’ve recently decided that it’s time to look at greener pastures, you are probably thinking “this is all well and good but why is it relevant to me I’ve decided it’s time for a move and that’s that”
We have seen so many instances where a candidate has said just that and then proceeded to accept a counter offer, it really is a much harder situation than anyone ever anticipates. Of course there are some situations where it would be seemingly impossible to turn down a counter-offer, it’s therefore important that you consider all of the options.
Let’s face it, counter-offers are always flattering. However, the reasons behind it being offered need to be addressed. Many employers will genuinely be sorry when their employee resigns and instinctively respond with promises of promotion, higher salaries, career progression, more exciting projects, better work/life balance and even guaranteed bonuses (sometimes slightly ironically referred to as “loyalty bonuses”). However you also need to think about the timing of these, as your company now has an unwanted vacancy that takes time and money to fill.
It is important that you think about the following points:
- When you started looking for a new position what were the reasons behind this? Have those reasons disappeared? Will staying in your current position resolve these issues or is it likely they will crop up again in the future?
- Your company now has to find a replacement, a process that costs time and money on training and developing a replacement for you. So when the counter-offer is presented, ask yourself the following question: is my current employer making me this offer because they have my best interests in mind or because it will be more convenient for them, for me to stay?
- If the counter-offer includes a higher salary or position, you need to ask yourself if you are simply getting your next raise or promotion in advance. You need to think about how you will progress after this, will you have to accept yet another job to get the raise or promotion you deserve after that? Why did they not offer you this promotion sooner?
- Statistics highly suggest that many of those who accept counter-offers leave within the year. Once you hand in your resignations your loyalty to the company may always be questioned and many employers assume that you will look again. You need to be aware that if you stay your relationship with your employer may change.
- Think about the new job. Just as there are reasons for leaving your current company, you have seen significant opportunities in this new company or you would not have considered moving. Just because you have received a counter-offer these opportunities do not disappear.
If you intend to seriously consider a counter-offer, be sure to ask your present employer to confirm all the details of the counter-offer in writing before making any final decision. Keep your potential new employer (or your recruitment consultant) fully informed of the discussions your current employer is having with you as well as your thought process. This is admittedly easier if you have a good recruitment consultant as they should be able to provide a sounding board for the internal battle that you are probably experiencing! If you do ultimately decide to take a counter offer, make sure that you leave things on good terms with the other company and whatever you do don’t try to prompt both companies to enter into a bidding war over you. It is very obvious when a candidate attempts this and not only does it irritate businesses but it could also leave you without either of the positions.
When you are ready to make that move, it is important that before resigning you should sign a contract of employment with your new employer. This will not only help to confirm your decision with your boss but also make the transition easier for you.
The next step is the resignation letter which needs to be handed directly to your boss. This helps you maintain the initiative and remain in control. If a better opportunity exists elsewhere then hopefully your boss will appreciate this and you can leave with an amicable departure. The property industry is after all a small world and you never know when your paths will cross again…
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@KDHAssociates 1:00 AM Jan 1st