Frantic ‘tug of wars’ between employers desperate to retain staff and companies wanting new talent are causing a rise in the number of ‘buy-back’ packages being offered to high-flyers, say recruitment experts.

John Wakeford, managing director of search and selection company Hitchenor Wakeford says executives must beware of the effect that extended haggling can have on career prospects.

A ‘buy-back’ package is where an existing employer offers an improved package to match the new offer received by the employee. Packages include share options, tax-free bonus payments and equity in the business.

“These unseemly human auctions can deflect the candidate’s attention from some of the more important underlying issues,” says Wakeford.

“Usually these include such non-monetary factors as seeking to increase their breadth of experience, or working for a more dynamic and ambitious organisation.”