Opportunity Vs. Money

martomcg

I'm currently working as an engineer and went for an interview for a software job last week. I was offered the job and went to give my notice to my employer. He has since come back to me with an offer of more money and a permanent contract.

I enjoy working where I am but I also see this new place as a great opportunity. I'm really on the fence about what I'll do! And I have to make the decision tomorrow!

Any thoughts?

Eoin

I really have to try and find where I read this, but apparently most people who accept a counter offer after resigning end up leaving within a year anyway.

Apart from the money and temp contract, were you really happy where you were? Are there opportunities where you are? Will you be doing the same work that you've been looking to move away from? Is the increase enough for you to forget about moving into software for a while?

Irish_Elect_Eng

A Random Selection of References

Managing a Counter Offer.

"And if you find yourself being tempted, remember this: national statistics show that 89% of all employees who accept a counter offer leave within the next 6 months."

Why You and Your Candidates Should Never Accept a Counteroffer

1. The current employer is attempting to cover their tush. When you quit they lose money. When you quit the manager looks bad. Better to keep you on board until they can find a replacement. If that happens your pink slip will follow in short order.
2. You become a fidelity risk to your current employer. You’ve threatened to quit once. It’s only a matter of time before you do it again, and smart companies won’t allow themselves to be put into this situation. You will never be perceived the same to them once you’ve threatened to quit and decided to stay.
3. Any situation which causes an employee to seek outside offers is suspect. For example, if money is your issue why does it take a full court press for your employer to realize they need to pay you more? If you’re worth more money now, why weren’t you worth it 15 minutes earlier?
4. The reasons for you wanting to quit will still remain, even if they are temporarily shaded.
5. Quality, well-run companies won’t give counteroffers…ever! How would you feel if one of your employees forced you into something? ”If you don’t X, then I’m quitting.” I know I’d be angry. I’d be more than angry. If they don’t like working for you then they should go.

It’s Never the Same Again

• The current employer gains back its staffer may seem to be the big winner. Initially, it may appear to lose ground because of the pay increase or promotion it extends. However, these costs are minimal compared to the loss of momentum on a project or the expense of recruiting a replacement.
  
• Still, winning back an employee is only a short-term fix, and the move may ultimately cause worse personnel issues. First, the company’s relationship with the employee is never the same. Most employees who accept counteroffers leave within six to 12 months, merely deferring their inevitable replacement.
  
• “We know the person is mentally ‘out-the-door’ and it’s probable that he or she will leave in the not-too-distant future anyway,” says a Dallas-based former partner of a Big-Five consulting firm. “We never quite trust them, and immediately begin contingency planning for a replacement-on our timeframe.”
  
• Second, the line of previously loyal employees threatening to leave to gain a raise begins forming at the door. “If someone isn’t committed to being here, it compromises our team and causes broad, negative ramifications far greater than losing that person,” the former partner says. Ultimately, the integrity of the employer, manger and indecisive recruit can all be irreversibly damaged.[/URL]

Eoin

"And if you find yourself being tempted, remember this: national statistics show that 89% of all employees who accept a counter offer leave within the next 6 months."

Wow, didn't think the figure was that high, or that the time frame was so short!

Edit - though I'm not sure how those "national statistics" could be compiled, now I think about it

martomcg

Eoin wrote: »

I really have to try and find where I read this, but apparently most people who accept a counter offer after resigning end up leaving within a year anyway.

Apart from the money and temp contract, were you really happy where you were? Are there opportunities where you are? Will you be doing the same work that you've been looking to move away from? Is the increase enough for you to forget about moving into software for a while?

the main reason i was applying for other roles was due to the temporary nature of my current contract. I enjoy working where I am but I do think that theres more chance for growth in the new company. Its a multinational with 2000 employees/operates in 14 countries and i'd be doing software testing instead of engineering/project management work so they're pretty different!

I've qualifications in both software and engineering and only graduated last year.

Its very interesting to see the info on people leaving after counter offers

Irish_Elect_Eng

Eoin wrote: »

Wow, didn't think the figure was that high, or that the time frame was so short!

Edit - though I'm not sure how those "national statistics" could be compiled, now I think about it

Hmmm....I agree the base data looks a bit vague....

There does seem to be some hard data in severaly Hays surveys thought.

DON"T BOTHER - THE DEAL IS DONE

Almost half of all employers counter offer resigning staff but the majority of these attempts are unsuccessful, according to a survey by specialist recruiter Hays.

Of 1,700 employers surveyed for the annual Hays Salary Survey, 48 percent said they counter offer staff. But 80 percent of counter-offered staff still left the business within 12 months - 30 percent left as planned despite the counter offer, 42 percent stayed less than 3 months and 8 percent stayed between 3 and 12 months. Just 20 percent of those counter offered remained with the business longer than 12 months.

“As the skills shortage continues, employers will increase their efforts to attract, retain and reward quality staff,” said Nick Deligiannis, director of Hays. “So in cases where an employee with skills in demand resigns, many employers understandably try to counter offer them.

“But this is rarely a successful retention strategy because the employee already has several other offers on the table. They’ve applied for and seriously considered other vacancies so their decision to leave the company was made long ago.

“Even if a counter offer is accepted, we still caution concern as the original motivation for looking for another role remains, often leading to another resignation. This motivation will not be solved simply through counter-offering a slight increase in salary. Unless the issues are addressed, the employee is likely to still seek a better offer elsewhere.

“For those employees considering a counter offer, we would advise you to reflect on the reasons you looked for a new role initially and gain commitment from your employer to tackle these issues before accepting the offer.

“Despite the fact that the success of counter offers as a retention strategy is rare, we would not be surprised to see an increase in counter offers in the next twelve months as employers continue to attempt to retain their valued skills,” Nick said.

beazee

Left the previous place for a job outside Dublin (moving with family), more suited to my qualifications with bigger responsibility.

Counter offer was almost 15% increase (matching what other job offered). This made me wonder why has this happen only now when i handed them my resignation. All looked fine - no need to move, matched salary.

But still - the reasons I looked for another job were valid.

Six months later recession hit (2/3 orders coming from building contractors), 1/3 of the staff was made redundant, the rest took 20% decrease. If I'd stay there I'll be first one to went off the gate.

Moving job+home was the best decision I could make. End of probation period brought another 16% increase. Happy.

Mr. Loverman

martomcg wrote: »

the main reason i was applying for other roles was due to the temporary nature of my current contract

martomcg wrote: »

I enjoy working where I am

martomcg wrote: »

He has since come back to me with an offer of more money and a permanent contract.

If you like your current job and the main reason for leaving is now gone, I would be inclined to stay.

The multinational could be hell. I've worked for 4 multinationals and 2 out of the 4 have been completely ****ed.

Rossin

martomcg wrote: »

i'd be doing software testing instead of engineering/project management work so they're pretty different!

i wouldve guessed engineering/project management would be a lot better position than someone doing software testing??

Mr. Loverman

Rossin wrote: »

i wouldve guessed engineering/project management would be a lot better position than someone doing software testing??

QA tends to pay just as well or better.

martomcg

Mr. Loverman wrote: »

QA tends to pay just as well or better.

Right well i've decided to opt for the new job and reject the counter offer. Theres much more room to grow in the new company!

I think I was always going to take it but i just had to get my head around making such a big decision!