Should you accept a counteroffer?
Congratulations: You managed to secure a great new job opportunity! But be warned: When you resign, you may be made a counteroffer. But will you accept?
What is a counteroffer?
A counteroffer is an offer made to an employee by his current employer when he announces that he has decided to leave the company. A counteroffer can take the form of, for example:
- A salary increase;
- More job responsibilities; or
- A possible promotion to a dream job or another department.
Career changes are tough, leaving you with anxieties about leaving the comfort of your current job and having to prove yourself again in an unknown environment. You could even compare resigning from a company with the break-up of a marriage or a strong long-term relationship.
Accepting a counteroffer doesn’t necessarily mean that you’ll stay at the company longer
According to national surveys of employees who accept counteroffers, between 50 and 80% voluntarily leave their employer within six months of accepting the counteroffer because of ‘unkept promises’ by the employer. The rest are either fired, retrenched, etc., within 12 months of accepting the counteroffer.
When you’re made a counteroffer, it can be difficult to think clearly. So, when you’re made a counteroffer, it is important to understand what the other party is really saying…
Counteroffers are typically made using some sort of flattery:
1. "You're too valuable to this firm. We need you." “The team needs you.”
2. "You can't desert the team/your friends and leave them hanging."
3. "We were just about to give you a promotion/raise, and it was confidential until now!"
4. "What did they offer you? Why are you leaving? What do you need in order to stay?"
5. "Why would you want to work for that company?"
6. "The president/CEO wants to meet with you before you make your final decision."
The person making the counteroffer may be sincere in their quest to make things right, but your manager may not have the authority to follow through. Don’t take promises at face value: Get your counteroffer in writing.
While counteroffers may be tempting, and even flattering, be aware of following:
- Will your loyalty be in question from now on? Will you ever be considered a team player again?
- If there are future staff cutbacks, will you be the first to go because of concerns about your loyalty?
- If you accept the counteroffer for more money, are you just giving your employer the time they need to locate, select and train your replacement?
- Will your career progress remain blocked if you accept the counteroffer?
- Will your responsibilities really be expanded?
- Will you have to report to a person you don't respect?
- Are you maybe just receiving next year's raise or bonus early?
- Is the counteroffer a ploy to avoid a short-term inconvenience to your employer?
- What are your realistic chances for promotions now that you have considered leaving?
- Where did the additional money or responsibility you'd get come from?
- Will you be limited in the future? Will you have to threaten to quit to get your next raise?
- Will your employer feel like they've been blackmailed?
- Will your team view you as a traitor?
Your colleagues may become resentful that you were given a raise or company perks because, as they see it, you blackmailed the company into making a counteroffer.
Weigh up the pros and cons of accepting a counteroffer before you do so
Accepting a counteroffer can have many negative consequences: As attractive as these may appear, they can greatly decrease your chances of achieving your career potential.
Before you decide to accept a counteroffer, take into account the core reasons why you decided to begin searching for another position:
- Was it because you wanted a prime parking spot?
- Or was it because your efforts weren’t valued?
- Was it because you wanted extended lunches?
- Or was it because you want to get home at a reasonable hour?
When all is said and done, are the perks that you are being offered sufficient to overcome your initial objections that motivated your search for another job to begin with?
Prepare for all the possible scenarios that may arise in your resignation meeting: Whether you decide to stay or make a clean break is up to you. Just be sure that your decision is an educated one.
