Should I accept a counter-offer from my current employer? Short answer: “bad idea”. Here’s why.
If you’re thinking about making a move to a new job, be prepared for a counter-offer from your existing employer. Don’t necessarily be flattered, because it’s simple economics: it’s cheaper and easier for them to give you a raise. But don’t be surprised if you leave within a year, or they “eliminate your position.”
Study after study have shown that over 90% of those who accepted a counter-offer were gone from that job within a year. Why? It’s not pretty.
At this point you may be thinking, “Ok, you’re a recruiter, so you don’t want me to stay.” Actually, we discourage people from talking to us about a new job unless they are serious. We start the discussions about counter-offers with our candidates right up front, because we represent top talent, and top talent will almost always receive a counter-offer.
There are probably several reasons you decided to leave your job. Perhaps you don’t like the culture, or the company’s leadership, the people you work with, the commute, or perhaps you believe your opportunities for advancement will better be found elsewhere. You’ve thought it over and already decided that you wish to move on. But a counteroffer typically only addresses compensation– not the other issues you’ve already identified. Our experience has shows that for the vast majority of people who accept a counteroffer, they remain dissatisfied. About half are gone within 12 months, as noted below. So ask yourself: will you will experience long term happiness and personal satisfaction at another job that is more suited to you than your current role?
While counteroffers are appealing, you ask yourself– “Is this advancing my career? Am I going to be able to grow here?” You should ask yourself, “What’s the highest position I could achieve if I stay?” If you’re happy with your answers, then perhaps you should stay.
So why did people end up leaving after all? It’s almost always one of these three reasons:
Reason one: Working conditions, treatment by their boss, low pay, lack of vision, working conditions didn’t change.
Reason two: Their resignation raised red flags with their boss and upper management.
Reason three: Their company brought in someone new for them to train- then guess what happened.
Unfortunately, we have seen time and time again that your loyalty will be questioned from this point forward. This is is why we coach candidates from the very start, “Don’t start talking to recruiters (including us!) unless you’re serious. If you tender your resignation, expect a counter offer!”
When it comes time for promotions, don’t be surprised if you’re not the one chosen for the new role. We’ve seen too many situations where people were given a counteroffer, then later replaced, or had their job eliminated. Sounds pretty heartless– but it happens all the time.
People will often turn in their resignation when their current position does not fit the picture they had for their career or life goals. There is no point in investing time and energy into something you do not want to be doing for the rest of your life.
Many (if not most) people leave their jobs because they realize that they’re not really valued or appreciated. If the counteroffer your given provides more money, a new title, bigger office space– it should in most cases be a clear signal that you were being taken for granted to some degree. If it takes your resignation in order for them to communicate their appreciation for you and your efforts, consider that their values and integrity may not be aligning with yours.
So before you accept a counteroffer, think carefully about why you wanted to quit in the first place. Is the job or company you’re with isn’t helping you get to where you want to go?
More money is not going to improve your improve working conditions. A counteroffer may give you hope of better working conditions along with a higher salary, but remember, the vast majority of those who accept counteroffers are usually gone within 12 months. Hoping that things will improve really isn’t a good life or career strategy.
It may be a long time before you get another raise. A very long time. As noted above, if only way to get a raise in your current job was for you to tender your resignation, then you shouldn’t be surprised if future raises are difficult to obtain.
Since most counteroffers involve a pay raise, ask yourself if higher salary if it is the main reason you tendered your resignation. Perhaps you should research (using a salary guide or speaking with an experienced recruiter in your industry) and find out what others are earning. If you were not earning what you should have been before the counteroffer, ask yourself the realistic question regarding future raises with this company and why it took your tending your resignation before they valued you enough to provide more compensation.
How do I decline a counteroffer? Be polite, be direct and be professional. Tell them that you’re appreciative, but that you’ve decided to move on. Thank them for their leadership and example, if appropriate. But be nice. We have a sample resignation letter we can provide- brief, polite and to the point.
As noted above, there are a lot of reasons why companies provide counteroffers, and unfortunately, very few of those are because they’ve decided that you’re underpaid and underappreciated. We suggest you think carefully before accepting. Choose carefully, and make up your own mind. We hope you found this helpful!
