By Neil Patrick
These days if you want to get a pay rise, you've got to learn how to play hardball.
It may be tempting to think that in these times of recession and cutbacks, getting a pay rise is almost impossible.
Well there’s a new trend happening which I thought I’d tell you about in case you've not heard the news…
It’s called the counter-offer. And right now plenty of people are securing pay-rises of an average of 25% when they hand in their notice and their current employers are immediately offering them a pay rise to try and keep them.
Why is this happening?
Employers know how much it costs them to recruit a replacement. Moreover you've got experience of the organisation, and inevitably after they have secured a replacement for you, that new person is going to take time to get up to speed.
And if your contract means you have only got to give one month’s notice, or even three, it’s going to be a tall order for the hard pressed HR team to find and hire your replacement in that time frame. Your employer knows that this means lost productivity in the organisation and hence lower performance. That costs them directly and indirectly and so they’re willing to pay to keep you, instead of incurring the costs of replacing you.
How do I pull it off?
Of course, if you’re going to adopt this strategy, it’s a pretty risky tactic to threaten to resign when you don’t have another job offer with higher pay. If you don’t have this offer, your employer might just call your bluff and you’ll be left high and dry.
So you’ll need to have a better offer from another employer first. But if you've got a solid set of skills, this isn't necessarily so hard. Remember, employers like to hire people from the ranks of the employed, not the unemployed, so if you currently have a job, you’re in a strong position to go looking for and get other offers.
It’s not unusual to be asked for written evidence of a counter offer. If you've got one, don’t be pressured into showing this. You are under no obligation to do so, and it’s a legitimate tactic to say that you will only do this when you have written evidence of a counter offer.
Absolutely not. There are reports of verbal counter offers which are given in this situation which never actually materialise. An unscrupulous employer knows that if you accept a verbal counter offer and stay, your alternative offer will almost certainly have closed by the time you realise they have duped you.
Are there downsides and how do I counter them?
Yes there are potentially. In some cases, the counter offer may come with strings attached. For example you may have your targets increased and this could be to unrealistically high levels. If this is the case you’ll need to think hard about whether it’s realistic for you to achieve these revised levels of performance.
Some employers will interpret your tactics as revealing a lack of loyalty and commitment. Therefore you have to approach this with tact and no trace of bitterness. The best approach is to be pleasant, clear and honest about it. Don’t be tempted to go on about all the things you hate about your job or employer. This adds nothing constructive to the discussion. The more matter of fact you are about things, the more likely your employer will be willing to negotiate.
It’s a good idea too to demonstrate this by stating (regardless of whether this is true or not) that you were approached by a recruiter about the job, not that you went looking for it. This shows that you've not been actively disloyal - rather that you are just such hot property that everyone wants to get their hands on you!
It’s not just about the money
It’s a good idea to make other non-monetary demands at the same time. This might seem counter-intuitive, but here’s why. Let’s say you feel that you have been under-developed by your employer. It’s fair to point this out and ask what they will do in the next 12 months to help you develop your skills further. This sends an important message; instead of being seen as yet more cost, your employer is more likely to interpret this as evidence that you take your career and personal development seriously. And if you point out that your new offer includes more personal development opportunities, they’ll feel the need to be competitive in this area too.
Do I recommend this to everyone?
No I don’t. It’s a tactic that works for some and is happening more and more in today’s marketplace. But you should think hard before you adopt it. If you think your employer is going to renege on the deal or blacklist you, and you don’t really like your job that much, it’s probably safe to say, you don’t really want a counter-offer anyway.
On the other hand, keeping your networking alive and an eye out for potential openings is absolutely a good idea. Employer loyalty is thing of the past, so you shouldn't have too many conscience pangs about looking after number one.
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