You have gone through the task of searching for a new role, interviewing and psyching yourself up to resign for a new challenge and then you get counter offered. Obviously it’s designed to tempt you to stay. Some companies have a hard rule on never counter-offering so don’t be offended if you don’t receive one.
The reason for the lack of counter offers in the market is that in up to 80% of occasions those who stay after a counter offer, then leave within 6 months. 9 out of 10 leave within a year.
It can buy a company time to find a replacement or finish a project but usually the reasons you were provoked to look don’t change, and the company culture, lack of appreciation or development opportunities remain the same. Any salary increase received quickly feels marginally and the search starts again. Many would advise you swerve a counter offer however you have to weigh up what’s right for you.
What is a counter-offer and what can it consist off?
A counter-offer is an offer made in response to employment offer your have received. It’s a last attempt to keep a high performing employee from leaving and it’s intended to make you reconsider your resignation. Typically promises a salary increase or promotion, or it could include a promise to support or finance further development or skills.
Employers use counter-offers to retain the employee’s knowledge of the company, customers and processes, to minimize the costs of hiring and training a replacement especially where they are working on an important project, and to avoid passing extra workload onto the rest of the team and of course to maintain employee morale and team relationships.
The main disadvantages of accepting the counter offer and staying:
❌If your main reason for leaving is the work culture. No amount of increased pay, improved job titles, or training opportunities is worth staying if the work environment is not right for you.
❌The only offer is an increase in salary. Your future career growth is as important, if not more so, than any short term financial gain.
❌ You do not have a good relationship with your manager or your team. Staying could mean you are passed over for promotions or training opportunities in the future if your manager feels you aren’t fully committed to a long-term career at the company.
❌The reason the employer is counter-offering is just to avoid the hassle of finding a replacement for you. If you feel that you’re being asked to stay just to cut down on hiring costs and not because they value you, it would be best to leave.
How to handle a counter-offer
Whatever your reasons are for resigning, avoid accepting or rejecting a counter-offer straight away. Here’s some tips for dealing with a counter-offer.
1️⃣ Speak to your manager and check out the terms and reasons of the offer
2️⃣Compare the offer with your new job offer. Consider if the new offer or the counter offer offers long term opportunities for your career and aligns with your aspirations.
3️⃣Speak to your Recruitment Consultant. They can help you think through and consider your options. They also might be able to get an increased offer on the table for you.
4️⃣Revisit your reasons for leaving and what would be best for you
5️⃣Listen to your gut and make a decision based on your values, priorities and current needs. Be confident in your decision and in updating all the parties once you have decided what to do.
