With salaries expected to increase by an average of 5% across the following year, businesses are increasingly fighting back with counteroffers as they try to retain talent.
But offering a higher salary in the form of a counteroffer doesn’t tend to fix the real problem, it just delays the inevitable.
Almost a third (29%) of employers believe counteroffers as unsuccessful in retaining employees any longer than 12 months.
In the short term a higher salary as part of a counteroffer may retain an employee, but they may be lacking something else in their role.
Whether it’s job stability, employee appreciation or company culture, looking elsewhere for job opportunities is usually a sign of a bigger problem!
Not only can counteroffers fail to fix the problem, but they can also cause bigger tensions and inequalities amongst other employees.
Therefore, operating with your employees in mind is very important!