Counter-offers lose their teeth.
The results from our latest workplace study, ‘A Longer Term View: Looking beyond the current crisis’, tells us that 90% of banking and financial services employees are turning down counter-offers when they find a new job. In the current climate of uncertainty, it seems employees are ignoring promises of increased rewards and instead looking for stability and career progression.
The figures reveal a shifting attitude towards career planning amongst City professionals. It seems promises of high wage packets are no longer enough to retain the best talent
Employees are ignoring promises of increased rewards and instead looking for stability and career progression
Previously relied upon as a key tool in the war for talent, counter-offers have seen many of the biggest employers monopolise the best talent in the industry for some time. Around 40% of employees in banking and financial services give counter offers to valued employees if they’re offered a role by a different company, while an additional 47% specifically target their very top talent with counter-offers.
However, it seems the tactic is fast losing its effectiveness. The ability of some employers to offer attractive counter offers is dwindling, and those that are offered are invariably being turned down. Even if the counter-offer is accepted, many commentators believe eight out of ten people will leave within six to twelve months anyway.
Alison Burgin, executive director at Badenoch & Clark, comments: “These figures mark a distinct step-change in how City workers are approaching the job market. Previously, money was the key motivator when looking for new roles. In that atmosphere, counter-offers were often successful - they appealed directly to the reason employees were leaving. However, with employees now looking at other roles as a means to finding security and a clearer career progression, employers need to re-tune their retention policies accordingly.
“The key is in finding out why your people are leaving, especially if it’s someone that is recognised as one of your top performers. Simply throwing a counter offer at someone and expecting them to stay will not work any more – you need to recognise some of the softer elements and address them directly if you hope to hold on to your top people.”
Download the key findings:
A Longer Term View: Looking beyond the current crisis
(PDF 330KB)
About the research
The research quoted above comes from a Badenoch & Clark report entitled ‘A Longer Term View: Looking beyond the current crisis’. It is based on responses received from over 900 financial services professionals, gathered through telephone and face to face interviews. The research covered employees as well as line managers across a broad range of financial services sectors, businesses and levels of seniority in both London and Scotland.
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