Counter-offers of up to 25% are becoming more common, but is it wise to accept one?

As a financial services professional in the Middle East you don't need telling again that times are tough currently. However, in certain positions, employers are so keen to keep hold of their staff that they're putting counter-offers of up to 25% on the table.

In the main, according to research by recruiters Robert Half, those in revenue-generating roles are more likely to have their current employer counter-offer if they secure a new position. Business development, sales and product management are all most likely to secure a significant pay rise from their current company if they receive a new job offer, says James Sayer, director of Robert Half UAE.

"This results from a fear on the part of the company that the loss of even one individual will have a direct and deeply felt impact on revenue," he says. "Another area where counteroffers are especially prevalent is within the regulatory sphere, specifically among money laundering reporting officers (MLROs)."

The question is whether it's particularly wise to accept a counter-offer from your current employer. Recruiters would argue that accepting more money from a company you tried to leave will only ever serve as a stop-gap measure. On the other hand, if leveraging your job offer to secure more money was your primary aim, then a counter-offer is an ideal outcome.

Robert Half's research shows that around 40% of HR managers it interviewed perceived counter-offers to be an effective measure.

"This suggests that remuneration is only part of the reason that employees leave their jobs. Career progression is also a prime consideration, as is maintaining a good work-life balance," says Sayer.