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MENLO PARK, Calif., June 9, 2015 /PRNewswire/ -- Although employee retention concerns continue to mount, a new survey suggests counteroffers aren't the answer when it comes to keeping the best and brightest. In new research from global staffing firm Robert Half, nearly eight in 10 (78 percent) chief financial officers (CFOs) said they don't extend counteroffers to keep employees from leaving.
One reason may be because this tactic can have a ripple effect. Among the 21 percent of CFOs surveyed who do make counteroffers, roughly one-third (34 percent) said doing so necessitated raises for other employees in the department.
The survey was developed by Robert Half, the world's first and largest specialized staffing firm, and conducted by an independent research firm. It is based on interviews with more than 2,200 CFOs at companies in more than 20 of the largest U.S. markets.
CFOs were asked, "Do you ever extend counteroffers to employees to keep them from leaving for another job?" Their responses:
|
Yes |
21% |
|
No |
78% |
|
Don't know |
1% |
|
100% |
CFOs who said they'd extended counteroffers were subsequently asked, "When you have extended a counteroffer to keep an employee from leaving for another job, did you also increase the salaries of any other employees in your department?" Their responses:
|
Yes |
34% |
|
No |
63% |
|
Don't know |
3% |
|
100% |
View an infographic highlighting the survey results.
"Counteroffers are not an effective retention tool," said Paul McDonald, senior executive director for Robert Half. "Offering more money to someone to prevent him or her from quitting doesn't typically solve the issue that prompted that person to resign in the first place. It can, however, upset the company's salary structure, prompt loyalty concerns and foster resentment among the rest of the team who may feel that they, too, must threaten to quit to receive a raise."
McDonald added businesses must regularly review their compensation levels, particularly in today's job market. "Waiting until an employee quits is too late to think about whether the salaries you offer are strong enough. Employees' frustration over their salaries could fester into a bigger problem of feeling undervalued and unappreciated, which more money via a counteroffer won't be able to remedy."
About Robert Half
Founded in 1948, Robert Half is the world's first and largest specialized staffing firm. The company has more than 340 staffing locations worldwide and offers online job search services on its divisional websites, all of which can be accessed at roberthalf.com. Additional career and management advice is available on the Robert Half blog.
SOURCE Robert Half