As an executive recruiter, you might not be surprised if I told you recruiters often tell candidates that accepting a counter-offer is the “road to ruin.”

However, you might be surprised if I told you that accepting a counter-offer isn’t always a certain path to doom.

There are certain instances in which extending and accepting a counter-offer can be a win-win situation for both company and candidate. Although these instances are not plentiful, they do occur, and being able to recognize them will set you apart from your competition.

Counter-productive counter-offers
Let’s get a couple of things out of the way. First, there are no hard and fast rules to making counter-offers work. There are too many variables involved, both on the company side and the candidate side. Second, let’s briefly discuss when extending a counter-offer is counter-productive and ultimately, futile.

If the employee was actively looking for a position and receives an offer from another company, then a counter-offer is not in your best interests. In short, you should let the employee leave. They were looking for one of two reasons, and maybe for both of them:

• Money—If this was the case, then a counter-offer might persuade them to stay . . . for now. But the same scenario will play itself out in 12 to 18 months, and the rest of your team might play the same game. This kind of escalating situation could wreak havoc with your budget, not to mention team chemistry and company culture.
• Something other than money—If this was the reason, then obviously money isn’t going to remedy the situation. The reason the employee wants to leave could be tied to any number of things—perceived lack of mobility, no passion for their work, a desire to change career paths, etc.

Motivation is crucial
It may seem as though counter-offers are a no-win situation, but as I mentioned previously, that’s not always the case. For example, if an employee was recruited or the opportunity somehow fell into their lap (as opposed to them actively looking for one), then a counter-offer just might be appropriate and more importantly, effective. Remember, motivation is crucial. If they’re not motivated to leave, then they just might not.

In such a case, the opportunity exists for you to make certain adjustments or boost a salary without negatively affecting the entire system. Do some investigating and find out what led to the interview and how happy the employee was before the interview. It’s possible that they don’t have their heart set on leaving.

It’s important to remember that counter-offers should be made only if a win-win situation is achievable. If only you’re “winning” or only they’re “winning,” then there won’t be a happy ending for anybody. Don’t stop somebody from leaving or hold them back just to make your team look good. Eventually, they’ll resent you. And always keep in mind the big picture. Don’t make a counter-offer that could jeopardize the long-term health, well-being, and productivity of your team.

Countering the counter-offer
Now, the best way to avoid this situation altogether is to construct a cohesive, highly structured, and effective retention program, one that starts the very moment they accept your offer of employment. By fully engaging your employees with such a program, you dramatically reduce the chances that you’ll have to eventually extend a counter-offer.

In short, keep your people challenged, make them feel appreciated, and compensate them in a competitive fashion. By doing so, you’ll create the best win-win situation possible—one in which you never have to deal with counter-offers in the first place.

Anybody who’s ever made the decision to leave their current employer for another opportunity knows that there’s a point where you’re comfortable with the decision you’ve made and you’re ready to move on.

But then your boss extends a counter-offer . . . and talks about how important you are to the company . . . and now you’re not so sure.

What’s your next move?

It makes sense if . . .
As a general rule, counter-offers are not to be accepted. There are a number of reasons for this. First, doing so might breed resentment with the other employees in the organization. Second, the fact that you were about to leave automatically brings your loyalty into question with upper management. Third, if staff has to be trimmed later on, your name might be one of the first ones brought up in conversation. After all, you were planning to leave, anyway . . .

And what’s the real reason they want to keep you around? Is it because you’re such a valuable employee? Or is it because they need you to finish a project before you go? If so, then once that project is finished, your term of employment may be, as well.

Despite all of the reasons to not accept a counter-offer, though, there are some instances in which it might make sense to do so. I’ve listed three such instances below:

• When your family isn’t excited about the change you’re about to make. Family should come first. If you’re on the fence, the family isn’t behind you, and the counter-offer looks good and safe (more on this below), then stay put.
• If you weren’t looking when the opportunity found you, the new job is good but not great, and the only difference is the money. If the only real difference is cash, and you’re happy where you are, then perhaps you should stay. Go only if the counter-offer is bigger than the other company’s offer, not if it simply matches it. If they want you, they can pay.
• If they offer to fire your boss (if that person is the source of the problem) and promote you. I have never actually heard of this happening, but often people tell me that this would keep them with their employer. Really! People say this to me. It never happens, but if it does, stay put.

‘The Road to Ruin’
If your situation does not resemble the three I’ve outlined above . . . then get out! In 1979, the publisher of The Fordyce Letter, the number-one newsletter in the recruiting industry, wrote an article for The Wall Street Journal titled “Counter-offer: the Road to Ruin.” In that article, he outlined how most companies make counter-offers only to fire the employees later once they had a replacement hired. He also listed other reasons why counter-offers are risky (some of which I mentioned above), such as the team resenting your perceived special treatment and the management questioning your loyalty.

While it’s true that a great deal has changed in the last 29 years, and when the article was written, the points it made were true most of the time. Now they’re true much of the time, but not always. Accepting a counter-offer is slightly more risky than taking a new position because with a counter-offer, you received something by forcing your employer’s hand—and people don’t like that.

In the new position, the company officials made the offer they wanted to make, not one they were forced to make. Which one sounds safer . . . and wiser?

If you have any questions about this topic, please send me an email at brg@charterinternet.com. And if you’re currently engaged in a job search or are interested in advancing the scope of your career, be sure to send me your resume. I’d be happy to discuss your career goals and ambitions, including ways in which I can help you to achieve them. Any exchange of information, including resumes, will be kept in total confidence and handled in a discreet fashion.

At The Animal Science Monitor, we’re big advocates of continuous training and improvement, which is one reason we promote industry conferences and conventions on a regular basis within the pages of our newsletter.  One such event that’s upcoming is the Mid-Atlantic Nutrition Conference.

This conference, scheduled for Wednesday, March 26 and Thursday, March 27, will be held at the Holiday-Inn Select in Timonium, Md.  Among those attending this event will be students, professional nutritionists, consultants, government officials, university scientists, allied industry personnel, farmers, and ranchers.

Our own Dan Simmons will be attending the MANC again this year.  If you’re planning to attend, make sure that Dan is one of the people you seek out and talk with.  He’d be happy to talk with you about the job market, your career aspirations or your suggestions for The Animal Science Monitor.

Training and certification
Networking is just one of the reasons to attend a conference.  Another is the fact that training opportunities that abound at such an event.  For example, at the Mid-Atlantic Nutrition Conference, the following opportunities will be available:

• On the first day, a general session features current nutrition issues will be held
• On the second day, educational concurrent sessions concerning equine, dairy, and poultry nutrition will be presented.
• Internationally recognized researchers will give presentations on various equine, dairy, and poultry nutrition issues.

The conference was formerly known as the Maryland Nutrition Conference.  According to its official Web site, the event is “recognized as the premier educational event for the animal nutrition industry.  Local, national, and international nutritionists share new, innovative, and practical research being conducted at universities, in industry, and at government institutions.”

By attending this conference, you can also add to your certification.  The meeting qualifies as 20 CEUs through the American Registry of Professional Animal Scientists (ARPAS) and as 12 CEUs through the Maryland State Board of Veterinary Examiners. 

Dan’s looking forward to seeing you
If you’re in the region, this is definitely an event you should consider attending.  The deadline for registering is Monday, March 17.  The registration cost to attend the two-day event is $100.  However, one-day registration is available for $65 on Thursday, March 27 only.

For more information about the conference, or to sign up for the event, visit http://www.manc.umd.edu or call Kelly Brannan at (301) 405-8746.
 
And don’t forget to meet with Dan while you’re there.  In fact, email him in advance of the event at dan@consearch.com to let him know you’ll be in attendance.  He’s looking forward to seeing you there.

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