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  • Counteroffers

    By Dean Dad July 13, 2009 9:37 pm

    I don’t do counteroffers.

    That’s not just a quirk of mine; my college doesn’t do them. It’s a policy I’m happy to follow.

    The question comes up whenever somebody respected on campus gets an offer elsewhere. People always seem a little surprised when the answer to “so-and-so got another offer – what are you going to do?” is something like “wish hir the best.” But it is, and that seems right to me.

    Admittedly, a position like this is easier to sustain at a community college than it would be at a Harvard. At the tippity-top of the prestige hierarchy, there may be good reasons to give Superstar Professor whatever she wants. Superstar Professor brings name value for recruitment, donor interest, and/or metric tons of grant money; a certain amount of groveling may make sense. But at this level, that’s not how the world works. While some professors here are more respected internally and in the local community than others, nobody really comes here to study under so-and-so. Our faculty don’t bring in the mega-grants, and for the most part, we wouldn’t have the infrastructure to support them if they did. That’s not our mission.

    (To be fair, the policy isn’t limited to faculty. We don’t do counteroffers for administrators or staff, either.)

    Good arguments exist for counteroffers. The one I find almost persuasive is the one that notes, correctly, that salary raises here are incremental and pretty much across-the-board. (The exception is promotion bumps -- going from Assistant to Associate Professor, say.) That means that if the salary you accepted when you took the job wasn’t much, then it may never be. Some people prove to be worth far more than the usual salary scale pays them, and they know it, but all else being equal, they’d rather not leave. In a system without counteroffers, their only option for a meaningful pay increase is to leave.

    That’s a problem, but it’s a problem with across-the-board salary increments. Introducing counteroffers trades a small problem for a much bigger problem. At a really basic level, you’re encouraging people to try to leave. Incentives matter. When you reward ‘disloyalty’ over ‘performance,’ it isn’t hard to figure out which way people’s energies will move. If you want to keep the best performers, pay for performance. That’s not the same thing.

    I’ve read that the average length of stay after accepting a counteroffer is 18 months. I don’t know if it’s true, but it sounds right. In my own experience, job searches (other than coming out of grad school) haven’t been entirely about money. People will tolerate relatively low pay if they like the job. (If that weren’t true, the entire adjunct workforce would have quit years ago.) If somebody is looking, it’s because s/he wants out. I’m okay with that – sometimes ‘out’ is the best option all around. Although the academic blogosphere is quick to sniff sinister motives whenever somebody trots out the ‘f’ word, there really is such a thing as a bad fit. If someone wants to find a better fit for hirself, I say, go right ahead. Someone who never quite clicks at college A can succeed wildly at college B. Context matters.

    In my single days, I learned early on that there’s no point in trying to argue your way out of getting dumped. To me, that’s what a counteroffer amounts to. It’s an attempt to postpone the inevitable through a palliative that doesn’t address the real issues. At most, it’s a mutually-unsatisfying stall. But unlike the dating analogy, counteroffers affect more than the parties directly involved. When there’s a contractual pay scale, counteroffers can sabotage it. Other employees quickly get the message, and system-gaming becomes a full-time job. Loyalty is punished, performance ignored, and internal equity simply forgotten in the stampede. Not worth it.

    Is there an argument for counteroffers at the cc level that’s actually persuasive? Am I missing it?

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Comments on Counteroffers

  • Posted by Miller McPherson on July 14, 2009 at 5:15am EDT
  • I guess I'm curious. Are you really arguing that nobody at your institution is worth more than they are getting? Or is it that you think that outside offers are not related to anything worth compensating? I don't have any experience in community colleges, but your position seems to me to suggest that faculty are interchangeable cogs in your machine, none more important than the next.

    I read over and over on this web site about the alienation and discouragement of faculty in these positions, and I can't help but wonder whether one reason for the problem is this clear attempt to suppress the effects of a labor market for faculty in these positions.

  • Reply to Miller
  • Posted by James Morgan , Associate Professor on July 14, 2009 at 8:00am EDT
  • To a large extent, given the mission of a CC, faculty are largely interchangeable cogs in the machine - as are administrators.
    If a faculty members wants to boost his/her income, they can engage in grants, additional duties (online course development for example) or if they have actuall real-world skills, they can do PT work. At quite a few (most) schools there's a bit of "resentment" between the liberal arts crowd and the "skills" crowd because a programmer, an architect, a nurse, a construction manager can all moonlight fairly easily vs. a rhetoric, english or history teacher - who would all run screaming to the college president at the thought of someone with a CIS doctorate being "worth" more than they were.

  • Posted by CG on July 14, 2009 at 8:15am EDT
  • “wish hir the best”? Please,...

  • An offer he can't refuse.
  • Posted by Lil Johnny on July 14, 2009 at 8:30am EDT
  • Unfortunately, changing institutions and resume building is the only way to build salary nowadays. Thus, the workforce has become much more transient. Every one is replaceable. But let's look at this from an economic and performance perspective.

    If we lose a person several things will happen.

    1. The instituion will have to spend thousands of dollars to advertise for the position.

    2. The instituion will waste numerous man hours searching for a replacement. The instituion may be unsuccessful in their initial search and may have to advertise and review applications a second time... or maybe even a third time.

    3. The instituion may end up hiring a person who will cost much more in salary than the great person they let go. And to top it off, this new person may be a poor performer.

    4. The instituion will spend numerous man hours orienting and working with the new employee. It may take years before the new employee reaches the level of productivity that the former employee (the one we did not make the counter offer for) had reached.

    This would be a no-brainer if we truly viewed the time and energy we spent on replacing and training people as money down the drain. Wouldn't it be economically wise to simply pay your GOOD/GREAT people 4-5 thousand more a year than to go through all of that? Making a counter offer may actually save the instituion a lot of time, headaches and money. It may keep productivity higher and certainly increases stability. Will this person we retain by offering them more money to stay eventually leave? Probably. But you have probably saved the instituion time and money for 2-3 years.

    If the worker who has an offer to go somewhere else is not a good or great performer, and/or is way overpaid, let them go. Hope to replace them with somebody cheaper and/or better.

  • Yes, but . . .
  • Posted by Erinna , Director of Unglamorous but Important Thing at A Big One on July 14, 2009 at 9:00am EDT
  • I don't know about the CC so much (just as a student many moons ago), but I think my situation might be comparable: I'm a just-tenured faculty member who administers Very Unglamorous but Important Program (VUIP) at Big Research U. Normally, it takes multiple faculty members to run a VUIP, but on my way to tenure I've proven that I can keep it humming by my onesies without losing my mind, people are (mostly) happy and increased effectiveness is documented to everyone's satisfaction.

    Increasingly, however, I've received interest from other schools who wanted their very own one-woman VUIP. This year, I shared this interest with my admin and them that I didn't want to leave, but I would for a spousal hire. My school kindly counteroffered, and I will continue to run the VUIP for another five years, much to the satisfaction of my administration, staff and faculty colleagues.

    (At which point they will need to figure something else out, b/c I'll be SO done with the massive admin gig. Unless, of course, they want to buy me a pony. I've always wanted a pony.)

    So the moral: it's not only Big Fancy Scholar who gets the counteroffer. It's also the unfancy-ish core administrators who are unusually efficient. And I wonder if that would hold true for a CC, even if the Star Scholar value does not.

    And thanks for yet another interesting column DD. I hope you write a book on this stuff some day!

    Erinna

  • CC's and Business as Usual
  • Posted by Janos , Professor - ex Associate Dean at COD on July 14, 2009 at 10:00am EDT
  • Unfortunately, my recent experience with my world of CC's is that people are interchangeable, regardless of their effort, strengths, and contributions. The world of CC administration is filled (not entirely, but certainly largely at the top) with people who have bad ideas about "business models" and forget that the primary product of any college is education. The net result is that people are not valued, extra work is not valued, and all of the benefits these people (faculty, staff, or admin) bring to students and the community are simply dismissed. The thought is something like "I can get someone younger and cheaper so if you want to leave, cya!" A little consumer anthropology shows that, unless you use a McDonald's style business model, this is no way to run a railroad, or a college. SO sadly, DD's experiences are right on the mark.

  • raises
  • Posted by ezry on July 14, 2009 at 10:30am EDT
  • As a third-generation university prof, I've always been intrigued by tales of "the business world" where one can supposedly go to someone else, present compelling evidence, and ask for a raise -- and occasionally have that request granted.

    No individual scheming and threats of desertion to get an outside offer, no system-wide merit-raise program that involves hundreds of person-hours a year to rank all employees so that some of them get $250 more salary next year than others, no holding one's nose and taking on an admin position one intends to loathe and/or ignore in order to secure a bonus/salary bump, no lowering of standards and applying for the bigger grant from the ethically skeevy grantor rather than the one that best matches one's research. (Not that scheming, desertion, loathing, and skeeviness don't go on in "the business world," just that there seems sometimes to be at least one other alternative for receiving a pay raise.) I'm not about to trade my situation for a corporate cubicle -- it's just been a situation of interest to me, like wondering about thirsty camels or how they make the plastic container surrounding my new utility knife so impervious that I need a utility knife to open it.

  • Who decides on "above and beyond"?
  • Posted by Beth on July 14, 2009 at 11:00am EDT
  • I work in an institution where a (now former) administrator promoted his drinking buddies, calling them the best and the brightest. It will take years for the institution to recover...the faculty, the staff, and the budget....

    Everyone who works hard likes the idea of merit pay and, like defining pornography, know excellence when they see it...but everyone sees it a little differently.

    I want to know I am paid fairly, and whether or not I drink beers with the VP on Friday night has nothing to do with my job performance.

    Some people work hard, and some don't. If you don't feel appreciated, go somewhere else. We are ALL replaceable, although perhaps not by someone as dedicated or hardworking or intelligent.

  • Yeah, I think you're missing something.
  • Posted by error-prone on July 14, 2009 at 12:00pm EDT
  • Lil Johnny makes several key points. Also

    Your system of inadequate, across-the-board raises is what creates the situation in which, to get a decent raise, a person has to (threaten to) leave. Rather than creating or rewarding loyalty, you're merely exploiting it. Moving is expensive, and your policy relies on those costs to pressure employees to stay with you under less-than-ideal conditions. Because of those costs, a counteroffer can be the preferable choice even if it does not even meet the original offer.
    You have experience with people who accepted counteroffers to stay and then left a year or two later. In some of those cases the counteroffer was a mistake, because you didn't know that the person was simply unhappy there, regardless of the salary. You should have talked to them more about what they were dissatisfied with. But in some or perhaps all of those cases, the person left partly because of the resentment your salary policy *creates* by forcing a person to choose between working for an inadequate salary or leaving for another position in order to get a decent raise. Take some responsibility for the working conditions at your institution. Don't simply label people who leave or think about leaving as disloyal; give them something to be loyal to.

  • Re: An offer he can't refuse.
  • Posted by Phil on July 14, 2009 at 4:15pm EDT
  • "The instituion may end up hiring a person who will cost much more in salary than the great person they let go."

    Oh come on. They will just hire a part-timer at one fifth the cost. They love waving goodbye to full-timers.

  • Yes, you're missing something
  • Posted by Superdude on July 14, 2009 at 4:15pm EDT
  • From what I know (reading this site daily and talking to friends who teach at a local CC), CCs treat their faculty as disposable and interchangeable. Perhaps, to some extent, they are, as cost seems to be the over-riding concern rather than quality. (Yes, I'm on the faculty at a university, and yes, it's true I hold CCs in low esteem, but it's a fact that the quality of instruction is worse).

    I would argue here, though, that your faculty are not disposable or interchangeable. If you want to run a good institution, hiring and keeping good people is key. One way to keep them is to make counteroffers. Another, complimentary, way is to keep them off the market in the first place. Counteroffers can actually help here, since it's a way to reward high-performers. Let's face it, salaries in higher ed are very rarely linked to performance. This is very demoralizing to good faculty members. Any opportunity to remedy this should be seized by administrators.

  • counter-offers ...
  • Posted by delo , assistant professor at university of the pacific on July 14, 2009 at 9:15pm EDT
  • when i was a cc administrator, the salary for each position i applied for was advertised in advance; this was typically accompanied by a statement regarding placement on the schedule (ie, that placement is based on experience; no one is usually placed above the third level, etc.). i always felt my salary was fair & reflected what was advertised; in addition, in our state, the salaries are public information so it would be very easy for administrators to see if some were being paid differently...

    on the other side of the issue, i recall offering people positions only to have them leverage that offer for a better offer at their current college -- those of us trying to fill positions generally didn't feel great about the time & energy we had invested in a candidate who wasn't seriously considering working with us.

    so i guess i'm with the dean; i don't think counter offers are helpful. i do think, though, that salaries should be included with job announcements (perhaps not for the presidents) so applicants can make informed decisions in the beginning of the process.

  • Whoa!
  • Posted by community college ceo on July 14, 2009 at 11:15pm EDT
  • I take great exception to the previous poster who stated that instruction at community colleges was inferior to 4 year universities. My community college faculty are bright, engaged and engaging professors, current in both pedagogy and in their content areas. I have not seen the level of commitment to students that I see here on a daily basis, but more importantly, I did not see that same level of commitment on any 4 year campus with which I've become familiar. There is an absence of academic jealousy and backbiting and a strong ethic of collaboration and support--for each other, for students, and for working with administrators. God bless community college faculty! Every student should be so lucky as to have classes taught by them.

  • Re: An offer he can't refuse.
  • Posted by James Morgan , Associate Professor on July 15, 2009 at 10:15am EDT
  • Your take on the costs of replacing someone are well put - but in 18 months, you're going to incur them anyway. That, or the person was never going to leave in the first place. ;)

  • Possibly but not necessarily
  • Posted by sibyl on July 15, 2009 at 1:30pm EDT
  • It seems to me that you can make a perfectly rational and non-degrading argument for no-counter-offer, thus: Our salaries are established by a certain state agency, or bargained collectively by a union, or indexed to seniority without respect for field or previous record of accomplishment. There is no provision for a counter-offer in our system.

    If the starting salary for all new assistant professors at Dean Dad's CC were $500,000, I doubt very much that people would complain that the no-counter-offer policy was inhumane and degrading. There are lots of ways that institutions mistreat employees. The fact that counter-offers are not made is not necessarily an infallible index of mistreatment.

  • Posted on July 16, 2009 at 12:00pm EDT
  • I was struck by the repeated use of "disloyal" and "loyalty" in DD's post, especially juxtaposed with his comments about no one being irreplaceable. Looking around and seeing what others are willing to pay for the same job is not disloyal. Getting outside offers as a faculty member is no different than a college doing a full search and considering giving the full-time slot to an outside hire over an adjunct who's been working there for years. Match or don't match an outside offer, but don't use words like loyalty.

  • Posted on July 22, 2009 at 11:15pm EDT
  • <i>Your take on the costs of replacing someone are well put - but in 18 months, you're going to incur them anyway.</i> Well, you're always going to incur those costs eventually, because eventually everyone leaves their job. The point is how often the institution incurs those costs per full-time faculty line. If you retain more faculty by making counter offers, then you replace people less often, which saves money. For example, you get to amortize the cost of orienting a faculty over, say, 7 years, rather than the 5 it would have been without a counteroffer. Ignoring ethical concerns for the sake of argument, the question is whether the savings from increased retention enough make up the cost of the higher salary itself.