Counteroffers are ineffective to retain staff?
One in three Singaporean companies doing so often
Whether you work in Japan or in Singapore, your boss would try to keep you stay in office when you submit a letter of resignation. (If you are valuable to your company!)
The management might offer you higher salary or better conditions for you to continue working.
The recent survey about counteroffers found these facts:
- 96% of Singaporean employers extend counteroffers to employees in a bid to retain employees.
- 59% have made a counteroffer to an employee who ended up leaving the company.
- The main reasons for making a counteroffer are: employees fitting in well with the company and team (60%), a desire to keep knowledge within the company (59%) and additional costs related to hiring (57%).
This was conducted by recruiter Robert Half, covering 100 chief financial officers and finance directors in Singapore.
Matthieu Imbert-Bouchard, Managing Director at Robert Half Singapore says that making such an offer is just delaying the inevitable.
"Even if the counteroffer is accepted, a higher salary does not always equal better performance and stronger loyalty. Employers would be better placed to withhold a counteroffer and immediately start the hiring process to replace them."
He advises that Singaporean employers need to take a proactive approach to their staff retention initiatives to avoid staff turnover, instead of reacting when an employee decides to resign.
Read more on the original articles here.