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| Never Accept a Counter Offer! It is the Road to Career Ruin |
- "This couldn't be happening at a worse time."
- "You are one of my best people. If I let you quit now, it'll wreak havoc on the morale of the department."
- "I've already got one opening in my department, I don't need another right now."
- "This will probably screw up the entire vacation schedule."
- "I'm working as hard as I can, and I don't need to do your work, too."
- "My review is coming up and this will make me look bad."
- "Maybe I can keep you on until I find a suitable replacement."
- "I'm really shocked. I thought you were as happy with us as we are with you. Let's discuss it before you make your final decision."
- "Aw, gee, I've been meaning to tell you about the great plans we have for you, but it's been confidential until now."
- “The directors/executives has you in mind for some exciting and expanding responsibilities."
- “Your raise was schedule to go into effect next few months, but we'll make it effective immediately."
- "You're going to work for who?"
- "You're too valuable, and we need you."
- "You can't desert the team/your friends and leave them hanging (guilt trip)."
- "What did they offer, why were you leaving and what do you need to stay?"
- "Why would you want to work for that company?"
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| Before you succumb to a tempting counteroffer, consider these universal truths: |
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Any situation in which an employee is forced to get an outside offer before the present employer will suggest a raise, promotion or better working conditions, is suspect.
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No matter what the company says when making its counteroffer, you will always be considered a risk. Having once demonstrated your lack of loyalty (for whatever reason), you will lose your status as a "team player" and your place in the inner circle.
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Counteroffers are usually nothing more than stall devices to give your employer time to replace you.
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YOUR REASONS FOR WANTING TO LEAVE STILL EXIST. Conditions are just made a bit more tolerable in the short term because of the raise, promotion or promises made to keep you.
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Counteroffers are only made in response to a threat to quit. Will you have to bring in an offer and threaten to quit every time you deserve better working conditions?
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| Decent and well-managed companies don't make counteroffers? EVER! |
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Their policies are fair and equitable. They will not be subjected to "counteroffer intimidation" or what they perceive as blackmail. If the urge to accept a counteroffer hits you, keep on cleaning out your desk as you count your blessings.
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| Counters usually take the form of: |
More money;
Promotion/more responsibility;
Modified reporting structure;
Promise of above or future considerations, and/or;
Disparaging remarks about the new company or job (Guilt trips). |
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THINK ABOUT IT. IF YOU ARE WORTH "X" YESTERDAY, WHY ARE THEY SUDDENLY WILLING TO PAY YOU "X + Y" TODAY, when you were not expecting a raise for some time?
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| The negative ramifications to accepting a counter-offer are numerous. |
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Where did the money or responsibility come from?
Was it your next raise-just early?
Will you be limited in the future?
Will you have to threaten to quit to get your next raise, or might your (cheaper)
replacement be sought out ASAP?
After the dust settles from this upheaval, you'll be in the same old rut. In fact, statistics indicate that more than 80% of those accepting counter-offers leave, or are terminated, within 6-12 months anyway.
In our search practice, although counter-offer acceptances are discouraged, 50% of those who did succumb had re-initiated their job search within 90 days.
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LOOK AT THE TWO OPPORTUNITIES, YOUR OLD JOB AND THE NEW POSITION, AS IF YOU WERE UNEMPLOYED.
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Which holds the most real potential? Probably the new one or you'd not have accepted it in the first place.
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| Salary Talk Made Easy ! |
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We deal with hundreds of candidates on a daily basis and find that a great number of them are totally confused about their salary structures. When asked how much they earn, almost all candidates can tell you what they take home, but very few know the difference between Total Cost to Company, Gross, Basic or Cash Package.
To ensure that you are not short changed when accepting a job offer, it is very important to have a clear understanding of the various salary terms used. Only then can one make an educated decision on one's future.
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| Terms used by management and HR personnel when talking salaries: |
| Basic Salary: |
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Your "Basic Salary" is the amount of salary you get before any additional benefits such as medical aid, pension, and allowances are added to your salary. It is also more commonly called your basic pay. Your basic salary is the section of your salary that is fixed every month. Excluded from this would also be overtime pay and any bonus or 13th cheque.
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| Gross Salary: |
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When employers refers to you "Gross Salary" this is the amount of salary you get after adding all your benefits and allowances to your salary and before deducting any tax. This is typically made up of the following components: Basic salary; Candidate contribution to Medical Aid, Pension/Provident fund, Group life etc, Allowances such as Travel, Entertainment, Computer, Cell phone, etc and Overtime and bonus for the specific period.
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| Nett Salary: |
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Your "Nett Salary" is what is left of your salary after deductions have been made for PAYE (tax), UIF etc. This is also the amount that is typically paid into your bank account on a monthly basis. Other deductions such as loan or bond re-payments are typically deducted after the Nett salary is calculated. In this instance your salary paid into your bank account would be you nett salary less these repayments. Nett salary is also referred to as "take home pay", i.e. That amount of money that you take home every month.
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| Cost to Company: |
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Companies use the term "Cost to Company" to calculate the total cost to them to employ you as an employee. I.e. what are all the costs associated with your employment contract. Cost to Company typically include the following: Gross salary; Company contributions to Medical, Pension/Provident, UIF, SDL , Group Insurance etc, 13th Cheque and Bonuses; Use of company property such as Car, petrol card, Computer/Notebook, software etc, Cost of any loans, bursaries and intrest free or low interest loans; Costs of any expenses paid on your behalf such as insurance & telephone at home etc and Costs of share options & incentive schemes etc.
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| On Target Earnings - (OTE): |
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“OTE" as a means of salary is typically used where a candidate works in a sales-related job and the salary on offer includes a commission portion. Here companies pay a basic salary and then commission on sales generated for the company. The commission typically kicks in only once the person has made a predetermined sales target. Once the target is made, the individual will then get commission on the sales above the target figure. There are many variations on the way the commission is calculated and almost every company has its own commission structures.
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