Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Tessa Sourceley (00:00):
Welcome to the
Deep Dive.
We're here to sift through thenoise and bring you the really
essential insights.
That's right.
Today, we're digging intosomething pretty complex,
actually.
It's the world of executivecounteroffers.
And specifically, we're lookingat Japan's talent market, which
has its own unique wrinkles.
Chase Stratton (00:19):
Absolutely.
It's a fascinating area.
Tessa Sourceley (00:21):
So the big
question is, is accepting a
counteroffer a smart move, likeproof of your value?
Or is it often, well, more of aprofessional trap?
Chase Stratton (00:31):
And that's
really our mission for this deep
dive, isn't it?
We're going to unpack thepsychology behind it, the
strategies involved, andcrucially, the pitfalls.
We've got some great sources todraw on.
Right.
So this isn't just theoretical.
We're aiming to give you, ourlisteners, some really crucial,
actionable insights.
Whether you're thinking about acareer move yourself.
Tessa Sourceley (00:51):
Or maybe you're
on the other side trying to
keep your top people.
Chase Stratton (00:53):
Exactly.
It's relevant either way inthis competitive landscape.
Tessa Sourceley (00:57):
Okay, so let's
jump in.
Our sources are showingsomething pretty significant.
Companies in Japan are usingcounter offers more and more.
Chase Stratton (01:05):
Yeah, it's a
definite trend.
Tessa Sourceley (01:07):
It's not just
happening now and then.
It feels like it's becoming astandard tactic almost.
What does that actually tell usabout how they're thinking
about talent retention rightnow?
Chase Stratton (01:17):
Well, it's quite
telling, I think.
It's just many firms areperhaps valuing talent
reactively.
Tessa Sourceley (01:24):
Reactively, how
Chase Stratton (01:25):
so?
Meaning they only really showhow much they value someone when
that person is about to walkout the door.
Tessa Sourceley (01:31):
Oh, okay.
Instead of proactivelyinvesting in them all along.
Chase Stratton (01:35):
Precisely.
Instead of consistentdevelopment, recognition, fair
pay, you know, the things thatkeep people happy in the first
place.
Tessa Sourceley (01:42):
So this trend
might actually signal a bit of a
disconnect in their overalltalent strategy.
Chase Stratton (01:46):
I think so.
It's like the cost of replacingsomeone only hits home as a
retention tool right at the lastminute.
It suggests talent is scarce.
Tessa Sourceley (01:55):
Right.
Chase Stratton (01:55):
Definitely.
And the immediate fix theyreach for is often just a
short-term problem.
financial one.
It doesn't always address theunderlying reasons why the
person wanted to leave.
Tessa Sourceley (02:05):
That makes
sense to really get into the
nitty gritty of this.
Our sources have a well, areally compelling case study.
Let's talk about Mr.
Tanaka.
Chase Stratton (02:14):
Yes, Mr.
Tanaka, a good example.
Tessa Sourceley (02:16):
He's described
as this highly sought after
bilingual executive working at abig traditional Japanese
company.
Right.
And after a lot of carefulsearching, he lands what looks
like his dream job, a C.
F.O.
role at a foreign startup.
It's fast growing.
That's promising.
Exactly.
And it wasn't just about moremoney, though.
That was part of it.
(02:37):
The big draw was the leadershipaspect, a chance to make a real
tangible impact.
Chase Stratton (02:41):
Which can be
harder in more traditional
structures sometimes.
Tessa Sourceley (02:44):
Precisely.
That was a key driver for himwanting to leave his current
setup.
Chase Stratton (02:48):
OK, so he's got
the offer.
He's excited.
Tessa Sourceley (02:50):
Yeah, he's
ready for this new chapter.
So he goes in and tenders hisresignation.
And what happened?
Chase Stratton (02:56):
Yes.
Panic.
Tessa Sourceley (02:58):
Pretty much.
His current company describedas a traditional Japanese
kiretsu, you know, one of thoseinterconnected corporate
Chase Stratton (03:06):
groups.
Very established structure.
Tessa Sourceley (03:08):
They react with
considerable alarm.
His direct boss, someone herespected, and the head of HR,
they pull him into these urgentmeetings and they lay it on
thick.
A really compellingcounteroffer.
Chase Stratton (03:22):
Okay, what did
it include?
Tessa Sourceley (03:23):
A big salary
bump, for one.
A shiny new title, though.
Interestingly...
A bit vaguely defined.
Chase Stratton (03:30):
Ah, vague title.
Red flag number one.
Maybe.
Tessa Sourceley (03:33):
Maybe.
And this big promise, you know,you'll be a key player in the
company's future.
That kind of thing.
Chase Stratton (03:38):
Right.
The classic appeal.
And this is where it getsreally tough for someone like
Mr.
Tanaka, especially in Japan.
How so?
There's this huge internalconflict.
He felt loyalty, sure.
But also this really strongcultural obligation.
It's called giri.
Tessa Sourceley (03:51):
Giri?
Chase Stratton (03:51):
Yeah.
It's like a sense of duty orsocial obligation, particularly
towards mentors or the group.
It weighs heavily.
Tessa Sourceley (03:57):
Okay.
Chase Stratton (03:58):
And even though
his recruiter apparently warned
him quite clearly aboutsomething called the boomerang
effect.
Tessa Sourceley (04:03):
We'll come back
to that.
Chase Stratton (04:04):
That cultural
weight, that feeling of Geary,
it made him hesitate.
He wavered.
And, well, ultimately, heaccepted the counteroffer.
Tessa Sourceley (04:13):
Uh-oh.
And the outcome.
Was it a smooth sailing fromthere?
Chase Stratton (04:19):
Sadly, no.
Not at all.
The sources say that just sixmonths later, Mr.
Tanaka was deeply unhappy.
Tessa Sourceley (04:25):
Really?
Yeah.
What went wrong?
A
Chase Stratton (04:28):
new title.
Mostly symbolic.
His promised newresponsibilities, they never
really materialized, remainedundefined.
Tessa Sourceley (04:35):
And those key
projects.
Chase Stratton (04:36):
They end up
going to someone else, a more
senior colleague.
The trust essentially wasbroken.
Tessa Sourceley (04:41):
With his
bosses.
Chase Stratton (04:42):
Yeah.
They started seeing him asdisloyal.
You know, someone who hadalready tried to leave.
Yeah.
A potential flight risk.
Tessa Sourceley (04:47):
And his
colleagues.
Chase Stratton (04:48):
They were wary
too.
So he found himself stuck.
Basically in the same situationhe wanted to escape.
Well, worse.
Tessa Sourceley (04:54):
How worse?
Chase Stratton (04:55):
Because now he
had this reputation, right?
As someone who rocked the boat,someone who looked out for
himself, maybe.
Tessa Sourceley (05:00):
Oh, dear.
So what happened in the end?
Chase Stratton (05:02):
Within a year,
he was job hunting again.
But this time, it was harder.
Tessa Sourceley (05:06):
Why harder?
Chase Stratton (05:07):
Because he had
that boomerang on his resume,
that accepted-then-leftsituation.
It makes hiring managerscautious.
Tessa Sourceley (05:14):
Wow.
That really illustrates thepotential trap, doesn't it?
Chase Stratton (05:19):
Perfectly.
And...
You mentioned the boomerangeffect his recruiter warned
about.
Tessa Sourceley (05:23):
Right.
What exactly is that and howcommon is it?
Chase Stratton (05:26):
Well, Mr.
Tanaka's story isn't unique,unfortunately.
There's actually data on this.
A Robert Walters Japan surveyfrom 2021 found that nearly
half, 47% of professionals inJapan who accept a counteroffer
end up leaving that companywithin a year anyway.
Tessa Sourceley (05:42):
Nearly half
within a year.
That's huge.
Chase Stratton (05:44):
It is.
And get this, 27%, so more thana quarter, leave within just
six months.
Tessa Sourceley (05:49):
Wow.
So why?
What's the main reason theystill leave after accepting more
money or a new title?
Chase Stratton (05:54):
The primary
reason, according to the
sources, is simple.
The original problems weren'tsolved.
Tessa Sourceley (06:00):
Ah, the things
that made them want to leave in
the first place.
Chase Stratton (06:02):
Exactly.
Lack of growth.
bad management, companyculture, whatever it was, a pay
rise, doesn't magically fixthose fundamental issues.
The counteroffer just delayedthe inevitable, really.
Tessa Sourceley (06:13):
That statistic
is really striking.
It makes you wonder about thecompanies making these offers,
too.
Are they just, I don't know,throwing money at the problem
without fixing the root cause?
Chase Stratton (06:23):
Often it seems
that way.
Or perhaps they can't easilyfix the root cause.
And maybe there's also apsychological element once that
trust is breached, like with Mr.
Tanaka.
It's hard to go back.
Tessa Sourceley (06:33):
You mentioned
the cultural obligation, Geary,
earlier.
Is there more to it culturallyin Japan, like broader values
that make saying no to acounteroffer, especially from a
boss, so difficult, more so thanmaybe in the West?
Chase Stratton (06:47):
Yes, definitely.
This brings us to the conceptof wa-wa.
Tessa Sourceley (06:52):
Wa-wa.
Chase Stratton (06:52):
Harmony.
It's a hugely important valuein traditional Japanese
corporate culture.
Maintaining group harmony isparamount.
Tessa Sourceley (07:00):
And resigning
disrupts the harmony.
Chase Stratton (07:01):
Exactly.
It's often perceived that way.
Sometimes even see as a kind ofbetrayal of the group's
collective effort.
Tessa Sourceley (07:07):
Okay.
Chase Stratton (07:08):
So when a
company makes a counteroffer,
it's often framed implicitly orexplicitly as a way to restore
that harmony.
Stay with us.
Don't disrupt things.
Tessa Sourceley (07:16):
So it appeals
directly to that ingrained sense
of duty and belonging.
Chase Stratton (07:20):
Precisely.
which makes rejecting thecounteroffer feel much more
emotionally loaded, much moredifficult than in, say, many
Western cultures whereindividual career ambition is
often viewed more neutrally oreven positively.
Tessa Sourceley (07:35):
That's a really
interesting cultural layer.
And something else our sourcestouched on was a shift in how
departures are handled.
Historically, there was more ofa ritual.
Chase Stratton (07:44):
That's right.
There was often a tradition,especially for long-serving
executives, of, well...
honoring their departure.
Think farewell parties, maybespecial bonuses,
Tessa Sourceley (07:54):
a sort of
dignified send off,
acknowledging theircontribution.
Chase Stratton (07:57):
Exactly.
It reinforced a sense of mutualrespect even as the person
moved on.
But that seems to be changing.
Tessa Sourceley (08:03):
How so?
Being replaced by
Chase Stratton (08:05):
these more
aggressive, financially driven
counter offers.
The focus shifts from honoringpast contributions to just
trying to buy back the employeeright at the exit door.
Tessa Sourceley (08:15):
And what's the
impact of that shift, do you
think, on how employees feel?
Chase Stratton (08:19):
Well, it can
make executives feel less like
valued members of the team, lesslike professionals whose
history matters.
And more like?
More like a commodity.
An asset whose value is onlyreally acknowledged or paid for
when they threaten to leave.
Tessa Sourceley (08:33):
Which could
actually damage loyalty in the
long run, ironically.
Chase Stratton (08:37):
Paradoxically,
yes.
It can erode the very loyaltythe company is trying to secure.
It highlights the struggle manytraditional Japanese companies
have adapting to a more fluidglobal talent market while still
operating within these deeplyingrained cultural norms around
harmony and avoidingconfrontation.
Tessa Sourceley (08:56):
Speaking of
unique cultural phenomena.
I found this fascinating.
Our sources mention resignationconcierge services in Japan.
Chase Stratton (09:04):
Yes, those are
quite something.
Tessa Sourceley (09:07):
What exactly
are they and what does their
existence tell us?
Chase Stratton (09:10):
They really
underscore the societal pressure
and frankly, the difficultymany people feel about having
that direct resignationconversation.
Tessa Sourceley (09:16):
So what do they
do?
Chase Stratton (09:17):
These are third
party companies.
You pay them a fee.
Tessa Sourceley (09:19):
Right.
Chase Stratton (09:20):
And they handle
the entire resignation process
for you.
They'll make the call to yourboss, deal with the paperwork,
essentially manage theawkwardness and potential
emotional fallout.
Tessa Sourceley (09:29):
Wow.
Someone else quits for you.
Chase Stratton (09:31):
Essentially,
yes.
Now, it's typically used moreby sort of lower level or
younger employees who find theconfrontation particularly
daunting.
Tessa Sourceley (09:39):
But the fact
they even exist.
Chase Stratton (09:41):
Exactly.
It speaks volumes about howchallenging and stressful the
act of resigning can be in thatcultural context where
disrupting the wah, the harmony,is such a big deal.
It's a market solution to avery specific cultural pain
point.
Tessa Sourceley (09:57):
Given all of
this, the boomerang effect, the
cultural pressures, the vaguepromises, it really sounds like
the executive recruiter's rolebecomes incredibly important
here.
Chase Stratton (10:07):
Absolutely
crucial.
They're not just finding you ajob.
In this scenario, they actalmost as a strategic advisor,
even a cultural interpretersometimes.
Tessa Sourceley (10:15):
How so?
Chase Stratton (10:16):
They're the ones
who can help you see past the
immediate allure of thecounteroffer, the money, the
title, and focus on the biggerpicture.
Tessa Sourceley (10:22):
The hidden
risks like what happened to Mr.
Tanaka?
Chase Stratton (10:24):
Exactly.
The potential damage to trust,the unresolved issues.
The recruiter's job is to keepyou anchored to your long-term
career goals, the reasons youstarted looking in the first
place.
Tessa Sourceley (10:34):
They provide
that objective viewpoint when
things get emotional orconfusing.
Chase Stratton (10:37):
Precisely.
That external perspective isinvaluable when you're caught
between loyalty, obligation, anda potentially better future
elsewhere.
Tessa Sourceley (10:47):
Okay, so let's
bring this home for our
listeners.
If you find yourself in thissituation facing a counteroffer,
what are the practical steps?
How should you handle it?
Chase Stratton (10:56):
Right.
This is key, whether you're theexecutive, the recruiter
involved, or even a managerworried about losing someone.
Tessa Sourceley (11:03):
What's the
first step?
Chase Stratton (11:04):
Before you even
respond, take a breath and go
back to basics.
Why did you start looking for anew job?
Make a list if you need to.
Tessa Sourceley (11:12):
Reconnect with
those original motivations.
Chase Stratton (11:14):
Yes.
Then look squarely at thecounteroffer.
Ask yourself honestly.
Will this actually fix thoseunderlying issues?
Is a bit more money or a fuzzytitle going to change the
workload, the management style,the lack of opportunity,
whatever it was?
Tessa Sourceley (11:28):
Be realistic
about whether the core problems
will remain.
Chase Stratton (11:30):
Exactly.
And consider the trust factorwe talked about.
How will your relationship withyour current bosses change,
knowing you are ready to leave?
What about your reputationinternally?
Tessa Sourceley (11:41):
So, assuming
you decide the counteroffer
doesn't change the fundamentals,how do you decline gracefully?
Chase Stratton (11:47):
Politely.
but firmly.
Thank them for the offer,acknowledge their confidence in
you, but reiterate that you'recommitted to the new opportunity
you've accepted.
Keep it professional.
Absolutely.
Maintain a professionaldemeanor throughout your notice
period.
Don't burn bridges.
Remember, the goal here is yourlong-term career satisfaction
(12:07):
and growth.
Tessa Sourceley (12:08):
Not just a
temporary fix or a short-term
cash injection.
Chase Stratton (12:12):
Precisely.
Focus on the long game.
Tessa Sourceley (12:14):
Okay, so
wrapping this up then.
The core message seems clear.
That counteroffer, while itmight feel validating, even
flattering in the moment.
Chase Stratton (12:22):
Very tempting,
yes.
It
Tessa Sourceley (12:23):
often just
papers over the cracks.
It doesn't solve the realproblems.
And it can lead to some seriouscareer pitfalls down the line.
Chase Stratton (12:29):
Especially as
we've seen in a market with the
unique cultural nuances ofJapan.
The risks are often higher thanthey first appear.
Tessa Sourceley (12:37):
A potential
minefield, indeed.
Chase Stratton (12:39):
So maybe a final
thought to leave you with,
based on everything we'vediscussed today.
Tessa Sourceley (12:43):
Okay.
Chase Stratton (12:43):
How might you,
personally...
Redefine what loyalty means inyour career.
Is it just about sticking withyour current company, perhaps
out of obligation or comfort?
Or could loyalty also meanbeing loyal to your own
long-term professional growth,your aspirations, your
well-being?
Even if that means making achange, something to think about
(13:04):
beyond just the immediatefinancials or the cultural
expectations.