Over half of New Zealand employers consider counteroffering resigning staff as they look to retain their strong performers, according to survey research from Hays.

The Hays survey showed that while 4% of employers always counteroffer resigning staff, another 50% do so depending on the individual.

“In today’s market, employers are pulling out all the stops to retain valued and productive staff,” said David Trollope, Managing Director of Hays in New Zealand. “Many use counteroffers as a tool to fight for highly regarded employees. This can make it difficult for hiring managers to secure top candidates, especially when a counteroffer is made that’s hard to refuse.”

Hays added that employees who received a counteroffer after resigning should consider why they decided to leave and if these issues will be solved if they stay.

“People leave jobs for a range of reasons, from a lack of new challenges to career advancement and a desire to feel valued,” said Trollope.

According to Trollope, counteroffers are only successful long-term when an employer actively addresses the reasons that drove an employee to accept another job. Rather than offering a ‘hollow new job title’ or a few additional benefits, for example, they must make real change that motivates, engages and develops an employee’s career.

For employers who regularly counteroffer, Hays suggests a new approach. “While counteroffers do work sometimes, don’t rely on them,” Trollope added. “At best they are a stopgap solution. Instead, understand the drivers of staff turnover in your organisation and fix the underlying issues to minimise the risk of employees looking elsewhere.”

“Perhaps fostering a culture of continuous upskilling, training your managers and crafting clear promotional pathways, for example, could improve job satisfaction and reduce the risk of employees leaving.”

The research was based on a survey of almost 4,000, consisting of 1,904 New Zealand organisations and 2,048 New Zealand professionals.