Counter-Offers: Dancing with the Devil

If you haven’t noticed, there is a War on Talent right now in the WDC regional insurance sector. Insurance agency owners and HR departments are doing just about anything now to retain their top talent. Including offering counter-offers to departing employees. 

Some are offering “stay-on” bonuses, a new car, exotic vacations, promotions, and even the promise of future ownership to stick around!

Resist the temptation. Don’t do it. It will be the worst career move you’ll ever make. 

Against my advice, three of our own candidates took counter-offers after signing an offer letter with my clients earlier this year.

We counseled against taking a counter-offer, but they were so flattered they could not help themselves.

Both have been since terminated.  That promised ownership? Never materialized. The owner’s kid showed up three months later from UVA’s Darden School of Business.

That “new car?” That turned out to be the owner’s daughter’s car that she was going to trade in for a new one!

They have nowhere to turn now.  I won’t help them.  Can’t trust them.

Let me explain.  Why do most people change jobs? The top four reasons listed below. They are:

·         Bored/Not challenged: this is when burn-out starts to set in. Why am I doing this??

·         Professional Growth: this is usually the case with candidates working in small to medium size insurance agencies who have simply maxed out their potential. Stagnation sets in.

·         Work/Life Balance: the commute is too long or the firm is unwilling to allow a flex-time schedule. Or maybe their boss is simply working them too hard.

·         Underpaid: the owners have been stingy with their money; taking advantage of the employees over a period of time. Are they going to pay you back pay for all those years they underpaid you while they took European vacations?

So how does this change when a counter-offer is offered to you?

The answer is very simple: It doesn’t.

These reasons are simply not fixable. Counter-offers are based purely on emotion. It’s like getting jilted by a boyfriend or girlfriend.

It’s like returning home from vacation only to discover someone broke into your house and stole your color television.

For a brief period of time, you’ll dance with the devil to get them back. It’s true, right?

A Vice President told me a long time ago when I was fresh out of college, “Passion will get you to the top, but Emotion will get you to the bottom.”

Aside from the reasons stated above, we have found that six in ten people who accept counter-offers are no longer with the company within one year.

Why is this?

Because the first time you make a mistake; you’re out the door.

Why is that?

Because once you resign to work for someone else, you are no longer a trustworthy person. Just something to think about…