Whether the news of your soon-to-be ex-employee leaving represents a big blow for your company or a possible weight off your management team’s shoulders, the reality of employee turnover is and has always been an unavoidable part of business, come rain or come shine. But like all inevitabilities, how it is prepared for and dealt with determines what it brings for a company, and this rings true for any business looking to thrive in a market filled with unpredictability. 

So, if you’ve just had your talented and likeable senior team leader come and tell you they are leaving to go and work for a competitor, how do you react? Do you panic and wrack your brain for a way to make them reconsider their decision? Or do you perhaps treat the issue as something to avoid losing time and resources over, and wish them the best of luck as they depart for pastures new? 

 Do you make keeping them a priority, and should you even try? 

 If that individual is a big asset to the company – reliable, motivated, hard to replace (or expensive), and now planning a move to one of your biggest competitors (and perhaps with a time-sensitive caseload on their plate) you will be tempted to offer them the moon to stay. Additionally, the true cost of losing an employee can be prohibitive – hiring fees, recruiting time, onboarding and training – not to mention the nose-dive in morale for other employees who see a valued and talented colleague walking out the door. 

 But a word of warning. A counteroffer may not be the solution it initially appears, as all angles of the situation need to be looked at before going down that route.  

Why Employees Leave 

What you should be wary of when looking to convince the employee to reconsider their decision, is going into the conversation with a financial incentive in mind as your bargaining chip. Research states that 50% – 80% of employees that accept counteroffers end up leaving their employer within 6 months due to the same issues that led to their initial decision. The fact is that it’s rarely a salary issue that sees employees leave to take up another job offer, so the chances that an offer of increased salary will keep them at your company are slimmer than you might think.  

Rather than an issue of compensation, the following are the biggest reasons employees typically begin embarking on a search for pastures new: 

Lack Of Career Progression

If an employee feels they have climbed as far up the career ladder as they can with your business, they are going to start casting their net elsewhere to discover better opportunities. A survey last year conducted by Go1 discovered that 60% of employees that were found to consider leaving their job in 6-12 months’ time, cited a lack of career prospects as their main driver. When a promotion has long been deserved but is not forthcoming, employees will begin to look for it elsewhere.  

The same can be said for job satisfaction from a more micro perspective. When an employee’s work doesn’t provide the necessary stimulation for growth or progress that it should, it leads to the dangerous drops in work ethic that the resulting boredom brings. Perhaps your Sales Manager has been dealing with the same clients doing similar work for several years and yearns for a new challenge. Or your Administrator has been hoping for promotion to Team Leader for some time but hasn’t been successful. If an employee doesn’t feel stretched or challenged in their job, they become disinterested and disengaged. Then disinterest quickly transforms into boredom, and this eventually manifests in a search for something else to extend their capabilities. 

Poor Management 

People don’t quit their jobs; they quit their bosses, and this remains the case today for businesses across all sectors. Poor management practice can do a lot of damage, – killing employee morale and impacting engagement levels – and consequently make the work environment a barrier to, rather than a catalyst for employee success. A workplace that doesn’t encourage ‘out of the box’ thinking or is inflexible with its staff is not going to facilitate success on an individual or collective level, and this is especially the case with working professionals today, with whom working with an employer that shares and lives out similar values to theirs is now much more of an expectation than a luxury.  

Employees need to feel valued and respected. They need to look forward to coming to work and enjoying their job. Having these aspects of the work culture in place enables them their drive not only their own career progress but that of the business too. 

Better Work Life Balance 

Some things money just can’t buy, and this is one of them. Even in a period where flexibility and healthy work-life balance is high on the priority list of many employees. The nature of the work life involved in the many sectors and professional services – as well as the prevalent workaholic culture that pressures many into sacrificing their own well-being for their company’s success – inevitably drives many employees to look towards leaving a position to try to claw back some time for themselves and their family.  

Asking The Right Questions

The best way to approach the conversation is by asking a few questions to get a good indication of why your employee is considering leaving. Keeping them general to begin with is best, as not everyone will be willing to discuss their reasons for leaving a job.  

A simple “What’s go you thinking of leaving’’ followed by a question asking whether they’d like to discuss it is a good way to get the conversation started. Asking questions can help you understand the underlying issues that have gotten your employee to the point of seriously considering leaving. Ideally, discussing these concerns can help you identify problems that you have the ability to address and  retaining your employee. 

And, even if they remain unconvinced, you will at the very least have learned  from their experience and can make improvements for future employees. Regardless, by addressing the issue and doing your best to find a resolution, you have ensured that you’ve done everything you can to take appropriate action.  

Making Your Counteroffer 

If you intend to make a counteroffer, start by asking your employee the following questions:  

1. Do they enjoy working at your company
2. Can they envision a future there? 

 If the answer to both questions is yes it is worth considering a counteroffer. Begin by offering non-financial incentives to encourage them to stay, as we’ve already that these are unlikely to solve the issues at hand. Instead, consider the following alternatives:

• Foster a workplace culture that embraces diversity and inclusion. 
• Explore flexible working hours, including options such as flexitime for employees experiencing stress or other options, such as working from home. Employers who are more open to alternative working arrangements tend to be more respected by their teams and see better levels of staff retention. 
• Assign them a role that plays to their strengths. Is there an opportunity to move the employee into a position that better suits their skillset and ability? Is there a project/case they could lead on which would challenge them? 
• Provide mentoring opportunities – a great mentor can provide invaluable insight, support and guidance to an employee who is struggling with their career. 
• Address management issues promptly, as there’s no excuse for poor behaviour in the workplace at any level. Bullying, harassment or just downright rude bosses or staff need to be dealt with ruthlessly. 
• Consider hiring additional staff to alleviate workload pressures. If workload overwhelm is the issue, then a temporary or permanent staff addition can reduce pressure on current employees, and lead to an increase in productivity, as well as fewer absences due to stress. 
• Establish a clear progression pathway. Everyone wants to feel they can achieve their career ambitions through their work and see tangible progress.  
• Develop an employee development plan that shows a clear training, development and progression route for each employee. This will give individuals something to aim for and ensure they are more likely to stay and grow with your company. Remember that taking tangible actions is crucial for the success of your counteroffer.  

Potential Pitfalls To Be Mindful Of 

Even more important to consider than the pros of a counteroffer are the potential drawbacks involved. The following should be considered before proceeding:  

• Could offering a salary increase create imbalance across the team?  
• Will other team members pressure for a salary rise when word gets out – and if so, can you manage expectations? 
• Will you get a reputation in the market for overpaying that could lead to unsuitable candidates clamouring to join your business for the wrong reasons? 
• Can you even afford an increased financial offer in the first place? 
• Is there a real chance of the employee taking your offer for granted? Could they continue performing at previous levels or become complacent, even arrogant, because they got their way?

Moving Forward

Whatever the outcome, you may want to consider ways to improve staff retention going forward; improving company culture, opening lines of communication to provide transparency and most importantly, valuing your employees. Using conversations around why an employee wants to leave can be a strategic opportunity to reflect and make improvements internally. 

As a Manager of Leader in the business, you should always be on alert for the signs that key individuals may be a ‘flight-risk’. In today’s changing labour market, issues like disengagement, burnout, and even “quiet quitting” are becoming increasingly common. But if you can recognise these signs ahead of time, there are still things you can do to re-ignite your staff’s passion for your company and prevent them from seeking other employment options…hopefully long before the conversation around resignation and counteroffers is even on the table. 

Moving On? 

If despite reasonable negotiation, the employee still intends to leave, it is best to agree to part ways amicably and wish them well. Remember, life is about change. If it’s time for them to move on, let them resign gracefully. Don’t be tempted to behave childishly – that will only get the rest of your team thinking about starting their own covert job hunt. 

 Instead, consider celebrating their contribution with a kind Thank You gesture. That’s the best way to build trust and successfully manage your remaining team. 

About Clayton Recruitment

Clayton Recruitment has been partnering with organisations across the country since 1989 and during that time has built up an excellent reputation for trust and reliability.

With specialist divisions covering Commercial, Financial, and Engineering appointments, on a permanent basis.

If you are building your existing team or looking for your next career move, we can help. And, if you are currently employed, you can be assured of complete confidentiality, professionalism, and honesty throughout the process – as standard.

Click here to speak to one of our experienced specialists or call 01772 259121 for more information on how our exceptional recruitment experience can help your career aspirations.

Attracting and hiring the most suitable candidates for your business is becoming an increasingly complex process across many sectors, particularly with the much-documented ‘skills-shortage’ to content with. And, in the age of the “Great Resignation” when indicatively hundreds of thousands of people are ‘on the move’ according to the Labour Force Survey, the great talent paradox facing HR and hiring professionals is actually in filling their vacancies – easier said than done in a post-pandemic market where active jobseekers have grown more discerning about where, how, and when they want to work.

This shift has meant, by proxy, today’s top talent has endless opportunities for employment, not just from local businesses, but global teams hiring remote employees.

Yet a much documented skills-short market, and a seemingly permanent loss of talent from the labour force means that even despite more flexibility from employers, future employees need to feel ‘wowed’ to have their heads turned.

To thrive in this competitive landscape, business leaders need to know how to create the most compelling job offers, in order to stand out to the most suitable candidates.

The question is, as employee preferences and priorities continue to evolve, how do you ensure your job offer has the right impact? Here are some of the top strategies you can use to improve your chances of your candidates saying “yes”.

1. Revisit and Asses Your Company Culture

Culture is growing increasingly important to today’s professional candidates. 46% of employees say company culture is vital to inform their decision of which business to work for. Top performers are consistently attracted to organisations that share their personal values, ethics, and priorities.

What’s more, many of the best candidates in the market today want to see evidence they’re going to be employed in a purpose-led job with genuine meaning. Assessing your company culture and how you highlight your values to your candidates is an important step in making your offer more compelling. Ask yourself what kind of values you highlight in your job descriptions, your business website, and even the reviews and testimonials shared by existing employees.

Does your business reward teamwork and innovation? Do you have a strong focus on Diversity, Equity, and Inclusion, to ensure everyone feels aligned in your workforce? Making a company ‘culture’ tangible isn’t easy, but should run through the DNA of your business, including any externally facing communications and collateral where possible.

2. Refine Your EVP

After you’ve ensured you’re communicating your company’s ‘culture’ through self-written messages as well as social proof through employee testimonials, it’s time to start looking at your Employee Value Proposition (EVP). Your EVP is essentially everything you offer your candidates that sets you apart from other employers in the specific practice area and/or region in which you operate.

While there’s more to a good EVP than salary, it’s worth making sure you’re paying your employees what they deserve. Research the typical pay rates for the kind of jobs you’re trying to fill, and make sure you take the value of your candidate’s knowledge, skills, and experience into account.

Recruiters in particular have a wealth of knowledge here and can offer pragmatic guidance on salary averages based on the specific role(s) you are hiring for, and how these can (and do) vary by region.

Beyond a competitive pay package, you can also improve your EVP by looking at your wider benefit offerings, flexible working patterns, and more.

Once you’ve defined your EVP, make sure it stands out wherever you’re going to be interacting with candidates. Share information about your benefits and opportunities on your website, and discuss options with potential talent during the interview process (a great way to test how they land and would be received by potential new hires).

3. Focus on Empathy and Flexibility

In the last couple of years, the priorities of many active jobseekers have evolved in a few key areas. Perhaps the most important factors most are looking for today, are empathy, and flexibility. Demonstrating empathy as an employer shows individuals that you respect their needs, and want to contribute to their general good health and wellbeing.

Creating wellness initiatives designed to keep employees healthy and happy is a great way to make your job offer more appealing to all kinds of candidates. Share information on your website and social channels about mental health days you’ve offered for your staff, or the on-site support you offer for the personal needs of your employees.

From a flexibility perspective, think about how you can adapt to the new working styles of top candidates. Many of today’s professionals are looking for opportunities to work from home, even part-time, to give them a better sense of work/life balance – while others also relish the chance to collaborate in an office environment. Are you able to tap into these needs?

You could even go a step further and experiment with concepts like the four-day work week (a pilot of which is running in the UK at the moment) to give your employees the potential of longer, more rejuvenating weekends. One great way to show empathy and flexibility at the same time is to ask your candidates about their specific needs during the interview process.

4. Demonstrate Opportunities for Growth

Today’s jobseekers want to know there’s a future in any company they’re going to be working for. According to Gallup, 59% of millennials prioritise opportunities to learn and grow when deciding which jobs to apply for.

Making sure your candidates are aware of the opportunities they’ll have to grow in your business will make your job offer more compelling. You can discuss the promotion paths you’ve offered in the past with your candidates during the interview, and outline the training and educational opportunities offered within your job description.

You might even let your possible hires know about the onboarding process you’ll use to welcome them into your organisation, during which you can both work together to outline a path for progression through the company.

It’s also helpful to share information about the development opportunities you offer online. Videos and written testimonials from employees who have achieved their personal and professional goals with your business can make a huge impact.

5. Work with a Specialist Recruiter

Finally, if you really want to ensure your job offers pack a punch (and are accepted!), it’s worth investing in some specialist support. A sector and/or regional specialist will know exactly what it takes to align the right candidates with the correct employers from day one. They can help you to seek out people who are actively looking for the benefits, and culture you offer, and already have a bird’s eye view of general market conditions and who else is hiring in your sector.

Recruiters can save you time by sorting through your job applications and eliminating anyone who might not fit well with your company. They can also provide advice on how you can position yourself to your candidates when you’re writing job descriptions and conducting interviews.

With a specialist recruiter, you can boost your chances of a “yes” when you need it most by building a pipeline of suitable candidates, all carefully chosen to match your business needs – as well as support with the crucial ‘offer management’ stage between both parties for a successful resolution for all.

About Clayton Recruitment

Clayton Recruitment has been partnering with organisations across the country since 1989, and during that time has built up an excellent reputation for trust and reliability.

With specialist divisions covering Commercial, Financial, Marketing and Engineering appointments, on a permanent basis.

Whether you are looking for your next career move, or your next hire as a business owner of HR professional – we can help. Call us on 01772 259 121.