Counter Offers - are they insulting?

[Job Media]

I just read some secondhand blog commentary this morning suggesting that counter offers (offering someone more money when they are about to leave) are insulting, and signify that the company only cares when it's almost too late.

I can see the point in this argument, but it assumes there is only one scenario and that the employee is being underpaid.

What are your experiences or views regarding counter offers?

[Cottoneyes]

I got a counter offer when leaving my last role, I did feel a bit offended by it as that organisation had not listened to any of my concerns, and after saying I was leaving for work / life balance, paying me more to continue with 14 hour days was not an option I wanted from them. It just re-inforced my opinion that the management had no idea of being able to listen to their employees.

I had a counter offer of a new role (and more money with it) in my first job I left, I did think long and hard about that one and didn't feel insulted at all (I was leaving to further my career)

In my HR experience, I believe that most counter offers that only include money and have been accepted, have ended up in the employee getting a larger payout within 6 months when they have left anyway.

[Moz]

As a recruiter I have been thwarted many times by counter offers and in most cases the employees are still with those companies 1-2 years later, by which time any smart employer would have a contingency/succession plan in place.

That said, I have seen some huge counter offers, sometimes because the employee was being grossly underpaid, but in other cases the offers have been way over market rates. I suspect the company probably realised how hard it would be to replace the individual and how long it would take for a replacement to come up to speed. The two combined can add up to a lot of money, then there's the lost productivity to consider.