Once practically unheard of, dealers are making counteroffers to keep key employees from leaving as the talent pool contracts.
Your service manager just informed you she found a new job. Within minutes of hearing the news you’ve terminated her employment and escorted her off the premises.
That was then. Now with a tight employment market you might take a different tact when an employee gives notice—a counteroffer.
This is a trend the recruiting firm Copier Careers has seen with greater frequency over the past six months whether it’s for sales rep, service tech, back-office, or C-level positions.
According to Paul Schwartz, Copier Careers’ president, “99% of the time in this channel when we found someone a new position or they found one on their own, this industry was notorious for terminating you the minute you gave notice. That was standard operating procedure for as long as I can remember.”
Things may be changing, but counteroffers come with a caveat.
“History has taught us that 80-90% of the people that receive counteroffers are not with the company six to 12 months later because the promises were hollow, the money issues didn’t resolve themselves, or because of resentment on the part of the employer,” said Schwartz. “Ultimately, there’s a target on [the employee’s] back because the company feels that they were held up.”
In the past, Copier Careers’ recruiters recommended candidates not accept counteroffers because the employer knows it’s going to be difficult to replace that individual and the counteroffer is sometimes a ploy to buy time while the employer figures out what to do next.
Schwartz believes this current trend reflects the employment market and shortage of skilled, trained individuals. It’s also not unusual for dealers not to have a Plan B should an employee give notice.
Based on the increasing number of counteroffers, Schwartz acknowledged maybe it’s time to question the reasons why Copier Careers tell candidates not to accept a counteroffer.
“Are they really valid anymore?” he questioned.
It may still be too soon to tell.
“It will be interesting to see how it pans out, six or eight or 12 months down the road if the candidate says they made me all these promises that things were going to change and they’re looking again or [the dealership] found a replacement and they’re out of the job,” said Jessica Crowley, business development manager, Copier Careers.
Copier Careers tracks more than 95,000 individuals working in the office technology industry in its applicant tracking system database.
“We know the industry has not been great at bringing on new people and it’s catching up with them,” opined Schwartz.
“There aren’t a lot of active candidates right now,” added Crowley.
For now, Copier Careers will continue to monitor this trend, a trend that has caught them by surprise.
“Things change rapidly in the industry, but it doesn’t change what we do that fast,” concluded Schwartz about what his firm is experiencing of late with this flood of counteroffers.
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