Over 40% of people are likely to accept a counter offer…. Really?

Over 40% of people are likely to accept a counter offer…. Really?

August 05 2022

Live recruitment market data to help you make decisions

 

A 60 second snapshot to take the temperature of professionals in FinTech, Financial Services & DeFi – delivering data and insight to help you make decisions.

 

We work with clients who will never make a counter offer and those who will do what they can to retain key talent. In our experience, counter offers typically are a short term fix and may retain for a period of time but not medium to long term.

 

Regardless of your opinion on making counter offers, the data suggests there is a reasonable chance of retaining someone if you simply match a competing offer and make some changes to someone’s role. Overall, 43% of people polled would definitely accept or strongly consider a counter offer with some interesting variances between functions and levels…

 

As always, our polls cover all levels and both technology and non technology roles. We received 880 responses across FinTech, Traditional Financial Services and DeFi and our results are broken down into:

 

  • Executive (VP, Director, Head of Function, CXO, etc.)
  • Non Technology (operations, corporate services, sales, risk, compliance, etc. below Executive Level)
  • Technology (all areas of technology from build to test below Executive Level)

 

This week we asked:

 

If a counter offer was matching my new offer with a change in aspects of my job, I would....?”

 

The Results

 

 

By Sector/Level

 

 

Key take aways?

 

  1. The most likely group to accept a counter offer is more junior non technology staff – 52% compared to a 43% average
  2. Women are slightly more likely than men to accept a counter offer but show a stronger bias toward uncertainty – 24% of men voted ‘No Chance’ compared to 13% of women
  3. Executive and Technology staff are least likely to stay with both voting 23% ‘No Chance’

 

What can you do?

 

  1. Counter offers are clearly reactionary – if you find you are a business that make a lot of counter offers, what is the root cause of this?
  2. Our poll last week showed over 60% of employees are likely to look for an internal opportunity before making a move which would suggest that if a business was more proactive about presenting opportunities, retention would improve and counter offers would not be as much of a requirement
  3. From our experience, there are a cohort of people who will look to get an external offer just to receive a counter offer – encourage employees to be open and communicate in advance of starting to look externally
  4. Benchmark often – we don’t produce salary surveys as the information is normally outdated by the time it is published but we regularly benchmark roles for clients and always happy to support
  5. When benchmarking, it is really important to consider the replacement cost – ie: if you were hiring externally for someone with a given level of experience, what would it cost (including time and cost of recruitment and training!)
  6. Finally, what is your policy around counter offers and how does that play out? Are you known as a company which typically make counter offers, if so, does that impact how staff act – the opposite is also true…

 

We are asking weekly questions to our pool of professionals to give you live market info to help making decisions.

 

Check out our recent surveys including:

 

 

If we can help solve any of your talent headaches – get in touch – [email protected]

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