Submitted by peptalks93 t3_z8esly in personalfinance
OneAdvertising9821 t1_iybf21c wrote
Reply to comment by CBus-Eagle in Job offer and counter-offer by peptalks93
> 100% this. Accepting counter offers could easily breed contention with your current employer.
There are circumstances when it can make sense. If you're truely leaving for money only, and you have a good relationship with your org then it may make sense to entertain a counter offer.
CBus-Eagle t1_iybg3xm wrote
I don’t doubt what you’re saying and it may work out sometimes. But I’ve also seen someone accept an offer and his boss (my equal) give him lower than normal raises the next 3 years. The bosses comments during our annual performance calibration and merit increase discussions was that this associate already makes more than others in his pay grade so he taking some of his merit increase and giving it to others on his team to help “level” pay.
OneAdvertising9821 t1_iyd6fh7 wrote
My F500 company does that as a matter of policy. Your pay within the grade dictates your target merit percentage.
If you're on the high end of the range, your merit target might be 3%. If you're on the low end of the range, your merit target might be 4%.
CBus-Eagle t1_iyd8dam wrote
Where I work, we get a bucket of money (say 3% of current salaries for your team) and the leader divides it up as they see fit. Yes, our HR system provides guidelines given each associates salary grade and performance score, but each leader has the final decision. I work for a F100 company by the way.
OneAdvertising9821 t1_iyd913r wrote
Ours is similar, but the size of your "bucket" is in $USD and is the sumproduct of the base salary and target merit increase for each employee.
Where this gets interesting is multi-national teams. My employees in Chicago get paid a heck of a lot more than my employees in India, but it's all one bucket of funds to allocate. This creates an environment where it is much easier for low-COL employees to get large merit increases than for high-COL employees to get large merit increases.
Penguinis t1_iyci0gb wrote
>There are circumstances when it can make sense.
Except...there isn't really. If you're unhappy enough to entertain accepting another offer, be that for money or other reasons, you'll be unhappy again in that same role eventually. Accepting a counter-offer at best simply notifies the current employer you're willing to leave when something better comes along (and why would they bother investing more company resources on an employee who is now known to be looking to leave) and at worst gives them time to find your replacement on their terms.
I've seen this scenario play out many times, all roughly the same outcome, many times in my career.
OneAdvertising9821 t1_iycu62p wrote
Eh. I work for a F500 company. Why wouldn't someone leave if F500 Company B calls them up and offers +25% to do the same job somewhere else? That conversation is incredibly easy to have with your boss if you have a good relationship with your org.
Will they use this to replace you? I have never seen that happen. Technical roles in F500 companies are expensive to backfill.
Penguinis t1_iyd6vnd wrote
>I work for a F500 company
As have I in the past.
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>Will they use this to replace you? I have never seen that happen.
I have. Repeatedly.
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>That conversation is incredibly easy to have with your boss if you have a good relationship with your org.
Your boss has a boss who also most likely has a boss. These conversations don't stop with your boss. Even if your boss doesn't think it's a big deal, chances are good someone else higher up might have an issue with it. And when the time eventually comes to have those conversations about who to keep/let go...those people with reps are some of the first ones to be brought up in those conversations.
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>Technical roles in F500 companies are expensive to backfill.
No, not really. A lot of people want to work in them and budgets are usually larger and they can be more competitive in attracting talent. Smaller companies with smaller budgets/footprints actually tend to have a harder time attracting people due to the above mentioned issues.
Make no mistake, everyone is replaceable. F500 companies are not immune to bad management and the short comings of having people, and the baggage they come with, complicate the process.
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