Is the counter-offer the best way to hang on to top performers?
More and more firms are making counter-offers to valued staff who are threatening resignation, but is this the best way to hang on to top performers?
Recent research by recruitment firm Robert Half has shown that nearly three-quarters (72%) of HR executives are concerned about losing their top performers this year. Nearly a quarter (23%) of executives surveyed confessed that they are increasingly resorting to counter-offers in order to hang on to their most valued staff. These findings would seem to suggest that while the general employment market remains sluggish, competition for high-performing staff remains high.
But is the counter-offer a viable retention solution? The research also showed that HR executives were concerned that the increasing use of counter-offers could result in a distortion of the company's pay structure, leading to perceptions of unfairness among staff and damaging morale. More than half the firms surveyed (53%) felt that counter-offers were ultimately unlikely to succeed, believing that staff who were unhappy would eventually leave anyway. Many employers also believed that it was more important to address the issues which were leading employees to consider resignation in the first place, and were considering introducing rewards and benefits to staff as incentives instead.
Acas offers training in all aspects of staff retention and can visit yourorganisationto help you understand what needs to be done to address issues related to pay  and then work with you to develop practical solutions.
Visit the Acas training and business solutions area for more information.