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Did you know that counter-offers rarely work?

When an employee resigns, there is a reason.

According to SEEK, 41% of employees resign due to work conditions / working environment; 35% due to organisational changes / restructure; and 32% due to management / leadership in the business.

So, in the majority of cases, employees are not leaving because of money, even if they tell you that is the reason. They perhaps don't want confrontation at the end of their employment, and "money" is a nice, impersonal reason to be leaving.

While it can make the employee feel good to receive a counter-off, inevitably, even if they accept the counter-offer, they will leave within 6 months because the real reason they resigned in the first place still exists.

Instead of throwing money at an employee who has reached the decision to resign, organisations should invest in building cultures where people don't want to leave.

If you need assistance to identify the signs that your people are becoming disengaged, or to build a strategy and action plan to enhance your current culture, we are here to help.


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