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Information Use in Counter-Offer Decisions: An Examination of Factors that Influence Management Counter-Offer Decisions

William MacKenzie (), Brian Klaas () and John McClendon ()

Journal of Labor Research, 2012, vol. 33, issue 3, 370-387

Abstract: We examine factors which influence manager assessments of employee value in response to outside employment offers. Data were collected from 312 managers on counter-offer decisions. We found the size of manager counter-offers increase as a result of the attractiveness of the outside offer, the presence of a neutral, third-party recommendation and when the recommending direct supervisor has an incentive to minimize compensation costs. Additionally, we found a significant interaction between offer attractiveness and third-party recommendation, where counter-offers made to employees with highly attractive offers increased more dramatically when a neutral manager recommended the employee in addition to the immediate supervisor. Copyright Springer Science+Business Media, LLC 2012

Keywords: Counter-offers; Compensation (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s12122-012-9140-2

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