Actuaries & Counteroffers: Worth the risk?

Actuaries & Counteroffers: Worth the risk?

Actuaries & Counteroffers: Worth the risk?

Actuarial employers do all they can to hire and keep good talent. In today’s competitive market, we have noticed that Actuaries seeking new employment are discussing counteroffers with their recruiters more frequently than ever before. As recruiters, we often ask, what is causing this? Is it because Actuaries feel loyal to their managers? Do they feel their skills are more valuable to their employer than ever before? Do they feel a counteroffer can be used as a tool to get them to the next level?

busy.jpgWe have laid out a few thinking points below which we hope will help make the process of considering an offer (internal or external) a bit easier and more intuitive.

Starting the Job Search

If a counteroffer is something you anticipate from your current employer at the time of giving notice, consider a few things as you begin your search for new employment. Talking through these points with your DW Simpson recruiter will also be beneficial.

  • Do your research and know your value in the market.
  • Consider talking with your manager to address your concerns/frustrations with your role/situation before you start interviewing.
  • Ask for that promotion or salary increase you have been waiting for. Don’t wait until you have another offer to use as leverage. This can be ill received by your employer.
  • Do the risks of considering a counteroffer outweigh the rewards?
  • Identify what your career goals are – short and long term. Will accepting a counteroffer from your current employer help you reach your goals in the near/long term?

Approaching the Offer Stage

As you near the end of your search and you have an offer in hand from a new employer, ask yourself, “Why was I looking to leave my current employer in the first place? Am I ready to have counteroffer discussions with my current employer should they come up?”

Consider the risks of considering a counteroffer:

  • Will your current employer be in a position to present you a counteroffer? Or, will they wish you luck and send you on your way? If this is the case, you have to be willing to take the new employers offer.
  • Will your employer view you as less loyal? Will you burn bridges?
  • If your current employer presents a counteroffer with more money, why did it take you giving notice for them to take this action? Will this increase in compensation affect your next annual increase/bonus?
  • You’ve now given your word that at one point you weren’t happy – is your employer now going to look at you and your work in a different way? Will they consider you a flight risk or will they have trust issues going forward?
  • While the counteroffer may address your short-term concerns, it may be just a quick fix. Statistics compiled by the National Employment Association confirm the fact that over 80% of people who accept a counteroffer aren’t with that same employer after 6 months’ time.
  • Your current employer’s motivations to present a counteroffer might be to benefit them more than to benefit the employee. It may cost the company more money (and time) to find your replacement than to dangle a carrot that will make you stay.

Julie-officeIn conclusion, employers want to keep good talent and counteroffers may play a role in that effort. However, for the employer, being able to tolerate some amount of turnover may be crucial to continue as a successful department and/or company. Dartmouth business professor Sydney Finkelstein writes that “managers who spawn new generations of talent within their industry know that they can’t hold on to employees forever. Instead, they know when it’s time to let go of someone stellar who’s moving onto something else.”

In a recent interview with Bloomberg Businessweek, Mark Weinberger (CEO at EY) said, “If you can keep [your employees], great. If you can’t, then hopefully they’re a great representative of you [your company], an ambassador of you [your company] out in their new jobs.”

As you are considering the next move in your career, arm yourself with as much information as possible and rely on your DW Simpson recruiter as a resource. At DW Simpson, we strive to be the best actuarial career advisors in the market, given our long-term and relationship driven approach, combined with numerous years in the industry.

Other Helpful Links

http://blog.specialcounsel.com/untagged/10-reasons-not-to-accept-a-counteroffer/

https://hbr.org/2016/07/setting-the-record-straight-using-an-outside-offer-to-get-a-raise

http://www.businessinsider.com/mark-weinberger-ey-expects-employees-to-leave-2016-8

About the Author


Julie Garwood joined DW Simpson Global Actuarial Recruitment in February, 2006. As a Manager and Recruiter, Julie enjoys the interpersonal aspects of keeping in touch with individuals throughout the evolution of their careers. Learning a person’s preferences both personally and professionally over time helps her to assist them in finding the job which makes the most sense for them at every step of their career.

One thought on “Actuaries & Counteroffers: Worth the risk?

  1. Patience Agu

    Hello and how are you?
    My name is Patience from South Africa.
    I need your Candid and professional advice. “PLEASE WHAT QUALIFICATIONS AND SKILLS DO I NEED TO ACQUIRE TO BECOME AN ACTUARY?”
    Presently, i have a B.Sc honour degree in Statistics, B.A Honour degree in Economics, and am about starting my Masters degree programme in Financial Economics at University of Johannesburg South Africa. I also intend to do some other analytical skill programme such as SAS, SQL .

    Please i need your professional guideline so as to ensure that i study the right courses to ensure that i attain my desired profession as an actuary. Expecting your career advice soonest.

    Thanks.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Jobs & News

Developments & Trends in Life Reinsurance

Developments & Trends in Life Reinsurance


By: Julie Garwood, Manager and KC Cho, Partner, DW Simpson As seen in the property and casualty reinsurance industry, low interest rates and alternative capital are making an impact in the life reinsurance market. The soft reinsurance market has been and continues […]

DW Simpson Welcomes Lisa Winding, Senior Recruiting Coordinator


Chicago, IL – April 4, 2017 – We are excited to announce that Lisa Winding is joining the DW Simpson family as Senior Recruiting Coordinator. In this key role, she will be a liaison between internal recruiting teams and DW Simpson’s clients […]

DW Simpson Global Actuarial & Analytics Recruitment Names Dave Benton Chief Human Resources Officer

DW Simpson Global Actuarial & Analytics Recruitment Names Dave Benton Chief Human Resources Officer


Chicago, IL – March 31, 2017 – DW Simpson Global Actuarial and Analytics Recruitment has promoted Partner Dave Benton to Chief Human Resources Officer. As DW Simpson’s CHRO, Benton will oversee all aspects of the company’s human resources management including performance management, […]

March Madness

March Madness


By: Bob Morand President and Managing Partner Originally published on Jan 1, 2014. March Madness is a special time of year. It’s Thursday morning, March 21st, and in a few hours the men’s annual NCAA basketball tournament/upset extravaganza is about to kick […]