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In my 35 years of recruiting, I can’t remember a happy ending to a case where an individual resigned and then accepted a counter offer to stay at his or her current employer. Why is that? Counter offers usually don’t address the underlying reasons why people want to leave their current positions.

Individuals change jobs for a variety of reasons. Their current role may lack intellectual stimulation, career development or progression opportunities. He or she may lack a cultural fit with the manager or organization. Or the executive may be tired of a long commute or an intense travel schedule and want a better work-life balance. Compensation is usually the last reason people leave their current positions or not even a factor at all.

Compensation is usually the last reason people leave their current positions or not even a factor at all.

Ironically, counter offers are almost always only about money. Companies may match or even go beyond the new offer to try to convince the person to stay. However, most other “promises” to address the driving force behind the decision to leave are simply “false promises,” and the reasons the employee had for searching for new employment in the first place do not go away.

If the reason was cultural fit, the company will rarely change its organizational structure or culture for one person. Even if management sincerely wanted to, effecting organizational change is a challenge that takes a great deal of time and effort. If the reason was lack of intellectual stimulation or professional development opportunities, the company would have promoted the person before he or she resigned and on its own terms.

According to one 2018 survey, 58 percent of managers make counteroffers to retain employees who receive job offers from other employers. How long do employees who accept a counter offer stay with the company? “Less than two years,” was the average response, according to the same survey. Counter offers are nothing more than a quick fix—a band-aid that gives a company time to assess the situation and determine the best action to take. Ultimately, the end result is often the same: the person is replaced or leaves.

Counter offers are nothing more than a quick fix—a band-aid that gives a company time to assess the situation and determine the best action to take.

If you are the recipient of a counter offer, be aware and follow your gut. If your instinct is to leave for another opportunity, stick to your decision and go. Be excited to look ahead. Of course, resign with grace and always keep the door open, as we’ve written about before. Sideline any objections with a clear and confident explanation that covers where, when and why you are leaving. Once you make the announcement, you are basically past tense in the eyes of the organization, but you will always be remembered for how you left. Keep all bridges intact. Times have changed over the years; and it is now acceptable to return to a former employer in a more senior role after having gained additional experience elsewhere.

If you are the employer contemplating extending a counter offer, be sure to think through the long-term implications. If you really desire to retain the individual for the long term, how will a restructured role or compensation package effect the organization? Will it positively or negatively impact your succession planning process? Will it upset internal parity? Can you sincerely address the fundamental reasons that caused the person to resign in the first place? If not, then congratulate the individual and keep the lines of communication open. This way, if an opportunity presents itself at some point in the future for the person to be invited to come back, he or she may do just that.

Article updated September 30, 2019

Questions, we get questions. “What should I do?” “Who should our company hire?” “How should our company structure this position?”

The most important question of the week is not any of the above. Not surprisingly the question is “How can I help my son or daughter who is a recent college graduate get a job?” One recent report indicates that only 22% of college graduates have secured jobs this year. Although this is not our focus, much of the expertise that we use to recruit outstanding executive management is applicable to your son/daughter’s search. The following are a few brief recommendations.

1. The Mind Set. Finding a job is a full time job, especially in these tough times. Merely sending out three or four resumes a day will not suffice. You must act as if you have a job and you have to report to work at 8 am. The job’s location can be at a library or home office. The important thing is that you are not distracted by personal phone calls, household activities or friends. This is why the outplacement firms do well-not because they find you a job-but because they instill a discipline of going to an office where you devote eight hours a day to getting a job.

2. Have a good resume. I am always amazed at how many resumes we get that have spelling errors-and this happens with even with senior executives. Ask friends and your parent’s friends who are in the workforce for feedback on your resume.

3. Ask yourself these important questions: What do you want to do? What companies offer positions that would allow you to do this? What size company do you want to work for? What industry? What geographical location? Remember that many positions are not advertised and are found by word of mouth.

4. Once you have answered these questions, start researching. Look at business periodicals. I find the Houston Business Journal’s Book of Lists is an amazing resource because it lists a number of different types of companies-those that are growing the fastest, pay the most, are the nicest places to work etc. Most other major cities have these books. They are a good investment. Fortune, Forbes, Business Week and local papers also have articles that talk about notable companies.

5. Once you have found companies you would want to work for, write or email them a concise letter along with your resume. In writing the letter, do not address it to “Dear Sir or Madam” or “to head of Human Resources”. Do your research and find out the name of the President of the company, the head of human resources or the department in which you would want to work. Always use a middle initial and his or her exact title. That shows that you are detailed and resourceful.

6. The most important part of any job search for a college graduate or anyone looking for a job for that matter: Network, network, network. Do not be afraid to ask for help. If you went to a certain college, get lists of alums that may be working at companies you are interested in. If you are a member of a certain fraternity or sorority, see if you can find alums at those companies. People are usually happy to do a favor for someone they have something in common with. Use sites like LinkedIn to add your own contacts. The more contacts you have, you are connected to the contacts of those contacts. Remember also to return the favor. It is the law of karma….what you give comes back to you again and again.

7. If you are a parent, do not micromanage the process. Be supportive without asking “how many resumes did you send out today?”

In summary, getting a job is a numbers game. Do you have to make ten calls, or ten thousand calls? Assuming it is 10,000 calls, the faster and more disciplined you are, the faster you will get a job.

June 12, 2009
Follow Up to “The Most Asked Question of the Week”
Wrapping up last week’s blog by answering a few of the many questions we got to help the children of our clients who are graduating from college and who do not have jobs Thanks so much for your response to our first blog.

Hi, thank you very much for the suggestions you posted last week. They were suggestions that I was able to pass along to my daughter. How can my daughter find a headhunter to help her?

Posted by: Paula Finlay June 11, 2009

First, it is helpful to understand how headhunters are paid. They typically earn a percentage of the first year’s salary (usually 20-30%) of the candidate they place. There are not many headhunters that will find a new college graduate a job because the fee would be so low. As one of our bloggers mentioned in an earlier post, graduating engineers can sometimes find a headhunter to help them. But aside from that, I’m not a big fan of using headhunters to find you a job. I think it builds character when someone can go out and determine who they want to work for and try to get an introduction. Secondly, many corporations simply cannot afford to pay fees these days and given the huge number of people competing for the same jobs, they don’t have to. Thirdly, if you don’t know the headhunter well, you really don’t know how he or she is regarded by some companies. Better to represent yourself.

How much should I be willing to help my college graduate in his job search?

Posted by: Matt Conroy, June 11, 2009

Parents can help by looking at a resume and offering suggestions, if asked. In this economy, if the parent has contacts that will open doors, he or she should use them. Just don’t fall into the trap of being responsible for all of your child’s job leads. People who really do the work to find exciting companies that are hiring, get interviews and eventually jobs, will build a sense of self esteem that is important as one enters the business world. If your child does meet with your professional friends, make sure he or she writes thank you notes.

Loved reading your ideas last week but my son wants to know what else he can do.

Posted by: John Hurwitz, June 11, 2009

1. The government is spending a lot of money now. Search the internet to see if there are entry level jobs there.

2. Take some courses this summer at a local college to beef up your resume. For example, accounting is always good, in addition to marketing and computer science.

3. There are companies in remote parts of the country that are hiring, if you have any wanderlust, apply to them. One that comes to mind is Wal-Mart. Now Bentonville, Arkansas may not satisfy your need for wanderlust, but they are hiring. Some of the large credit card companies have operations in South Dakota.

4. Research the type of company you want to work for…forget saying “I just have to get a job”.

5. While you have the time, dare to dream about what would be the perfect company. Go to the library and research. Which are the best companies in Houston, Texas, and the US to work for? Do those companies resonate with you? If so, see if you have contacts there through alums, parents etc.

6. Volunteer a few hours a week. It will make you realize how lucky you are, allow you to meet new people, and provide a beneficial diversion to your job search challenges.

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We’ve had numerous opportunities over the years to conduct searches for executives who will be replacing a retiree, or soon-to-be retiree. The process of retiring can be awkward for both the retiree and the company. As is true with most things in life, there are no absolutes, and every organization must determine the best plan for everyone involved.

Not surprisingly, when exiting executives can’t wait to hit the door—whatever their reasons—it makes for a crisp transition. Conversely, when retiring executives don’t have a plan for their new life in retirement, or worse, they don’t want to retire, the change of control can be difficult for everyone, at both a professional and a very personal, emotional level.

Timing

No two clients handle the setting of an executive’s retirement timetable in the same way, and we hear strong opinions about timing formed through experience in the trenches.

Two weeks? Too fast. Executives tell us that there simply is not enough time to even learn what questions to ask, much less absorb the knowledge dump in that amount of time, even when those leaving remain available.

An extended transition, while seemingly well-intended, creates more problems than solutions.

Two quarters to two years? Too slow. Many times, an extended transition, while seemingly well-intended, creates more problems than solutions. For one, the retiring executives must continue to find ways to remain relevant to the organization and validate themselves and their (usually large) paychecks. Perhaps more critical is the impact such delays have on the troops who are uncertain about to whom to look for directives and leadership. Despite everyone’s best intentions, employees will most often pursue familiar routes of problem solving and communications until forced to do otherwise.

That said, a longer transition can help, especially when the outgoing executive is able to manage certain matters while the new executive deals with bigger issues, like getting up to speed on the organization, its business strategy, its people, and its potential needs.

Worst case? Undefined transition schedules that leave the organization in a state of limbo. A mandate for change can be made especially difficult when the creator of those policies and procedures is still around. If the trains are running on time, installing a new leader doesn’t imply wholesale change. Either way, the ambiguity creates a tightrope upon which the entire organization is perched, trying to balance potentially competing loyalties, questions about authority and chain of command, and employees’ uncertainty about their own future vis-à-vis the organization and their new manager.

Undefined transition schedules leave the organization in a state of limbo.

Just right. We have found some consensus indicating that a one- to two-month transition period is just right. This seems to allow for both the outgoing and incoming executives, and the people on their teams, to implement an effective, efficient, and respectful change of control that honors the contributions of those leaving while conferring credibility on the new leader.

Announcing the transition

How an organization handles the messaging of retiring executives and their replacements seems to play a significant role in how smoothly the transition occurs. One major corporate client begins planning at the highest levels six months before the selected retirement date, makes a formal announcement two months out, and then the retiree is gone. Some organizations prefer to ease the executive into retirement, being careful to not offend anyone or intimate anything less than a stellar performance by the retiree, and a longer overlap is often viewed as more appreciative of their contribution.

So much seems tied to the frequency with which an organization may deal with these situations. Generally speaking, larger organizations have standardized procedures and smaller organizations almost have to reinvent the wheel each time.

Consider the future

Interestingly, a couple of themes consistently surface as we speak to both outgoing and incoming executives: (1) treat people with respect, and (2) remember that this is just one piece of a continuing story.

They express it in various ways: what goes around comes around, karma, the Golden Rule. Call it what you will, the message is clear: We would be wise to remember that we will all be the retiree someday.