A look at some key Counter Offer stats. If your’re torn between whether to accept one or not, here’s the Counter Offer statistics in plain black and white.
Counter Offer Stats
Stat. 1
50% of people that resign receive a counter offer
Stat. 2
38% of hiring managers reported not making counter offers at all
Stat. 3
57% of people that receive a counter offer accept them
Stat. 4
50% who accept a counter offer look for a new role within 60 days
Stat. 5
80% that accept a counter offer leave within 6 months
Stat. 6
90% that accept a counter offer leave within 12 months
Stat. 7
Replacing a senior employee can cost up to 213% of their annual salary
Want an alternative perspective on counter offers?
Resigning can be like holding a metaphorical gun to your boss’s head!
Analysing these counter offer statistics
So there we have it, the counter offer statistics courtesy of Eclipse Software. Now lets get into them. It’s time to start analysing the stats.
50% of employees that resign receive a counter offer
It’s very flattering to receive a counter offer when you resign. It may make you feel more valued by your current employer. It may also put doubt in your mind about leaving them. In the past counter offers were only offered to Senior Executives. Perhaps that’s one of the reasons people feel more important to the business when counter offered.
The competition for talent is fierce. Companies are also trying to reduce their recruitment costs. The fact is recruiting, on-boarding and training new members of staff is one of the biggest investments companies make. The cost to productivity, and the affect to the bottom line whilst the position is vacant, through to the new employee being trained and fully up to speed, is considerable. As a result in recent years counter offers have increased, and continue to do so, for employees of all levels. These stats suggest 50% of employees will receive a counter offer when they resign.
This year we’ve seen a rise in registering vacancies, where the client has tried to recruit in-house, only to be left disappointed by the candidate not starting. Often only finding out they’ve accepted a counter offer, on the day they were due to start.
I’d suggest that the number of people receiving counter offers will continue to rise above 50%.
38% of hiring managers won’t make counter offers at all
Apparently this counter offer statistic is from data compiled back in 2014. The research article for this post suggested that they felt this figure is unlikely to have changed that much. I’m not so sure.
Having been in recruitment since 1999, I’ve seen a lot of changes over the years. Even going back to my first ten years I can think of at least one client who was adamant they’d never make a counter offer. In their words “when someone resigns they’ve spat on the (company name withheld for confidentiality) flag. Once they’ve done that there’s no turning back and they have to leave.”
Whilst perhaps I wouldn’t have phrased it quite like that, I agree with their sentiment. Lets be honest, the counter offer stats demonstrate that they rarely workout long term. However despite their strong beliefs, on one occasion, at least one that I know of, they went against their beliefs.
I know this because the client gave me the brief to replace one of their Business Development Managers. They’d resigned, but due to the customers the sales person was working with, and the revenue they would bring in, they were made a counter offer to keep them, and their sales revenue, in the business.
That’s going back to a time when recruiting people was far easier than it is today. I have no data to back this up, but in my opinion counter offers are increasing. Therefore the 38% that say they wont make counter offers at all, will decrease.
57% of people that receive a counter offer accept it
In an attempt to remain impartial I’m not going to get into this one. Whether you decide to accept, or decline, a counter offer is up to you. Whilst most articles and counter offer stats suggest you shouldn’t, there’s no statistic that says you should 100% never accept a counter offer.
The whole counter offer debate normally focuses on the final stages of the recruitment process. This stage is generally an emotional time and the best decisions are rarely made when we’re emotionally confused. Rather than wrestling with whether you should or shouldn’t accept a counter offer, I believe you should never put yourself in the situation of having the internal debate.
If you want me to expand, read my post – the truth about counter offers.
50% of people that accept a counter offer start looking for a new job within 60 days
The fact 50% of people that accept a counter offer, start looking for a new job within 60 days, demonstrates the short term affect of counter offers. The speed in which they’ve resigned, accepted a counter offer and are back on the job market within two months, is worrying.
Clearly somethings gone wrong, and gone wrong rapidly. Either these individuals have made an emotional, and wrong, decision to stay. Alternatively the company hasn’t delivered on the promises of their counter offer.
Either way both parties are back to square one.
The individuals will have almost certainly burnt a bridge with the company that had offered them a position.
Their current company obviously weren’t that committed to the employee when they made a counter offer. However they may have bought themselves some time to find a replacement.
Between 6 – 12 months the counter offer stats only get worse
It’s clear from these counter offer statistics that the odds are stacked against counter offers working out long term. Of those who accept a counter, 50% are looking for a new job within two months. 80% are back on the job market within six months, and 90% are within twelve months.
What’s not clear is whether after accepting a counter offer they start looking for a career move again because they want to, or because they have to.
If it’s their decision to look for a new position, it’s likely that the counter offer made, and accepted, hasn’t changed their issues with the company. Or their reasons for wanting to leave in the first place.
However, if they’re back on the job market because the counter offer was made to buy some time to find, and integrate a replacement, and now they’ve been given their notice and let go. Then as a result they’re entering their job search at a disadvantage, from when they were employed and had time to find the right career move.
It can cost up to 213% of a senior employees annual salary to replace them
From a commercial perspective it makes financial sense for a company to counter offer an employee who resigns. Even when they know it’s not likely to be a long term solution. When you know it can cost up to 213% of a senior employees annual salary to replace them, the comparatively small salary raise in your counter offer isn’t quite so flattering.
So there it is, the counter offer stats in black and white. Whatever you decide, should you accept a counter offer or not, I hope you make the right decision for you and your career.
If you’d like further careers advice, or to discuss your career aspirations and how we can help you achieve your goals, please get in touch.