The sudden rise of the counter-offer

As economy improves, employers should be prepared for restless employees
By Gary Huggins
|Canadian HR Reporter|Last Updated: 05/06/2011

Counter-offers, which virtually disappeared during the economic downturn, are back with a vengeance as companies desperately try to retain employees who have been offered positions at other organizations.

But this is not a positive trend — employers are overpaying with counter-offers and, in some cases, making ad hoc promotions and organizational shifts in an attempt to hold on to staff.

Before the economic crisis, companies considered it their mandate to help employees manage their careers through training and career planning because this was good for the bottom line.