Counter Intuitive: The Pitfalls of Accepting a Counter Offer

Picture it now…you go through the interview process with a new company and get to the offer stage. You’re excited, relieved, and ready for something new. The offer is an increase from your current company, which is also great news to you. Then you go to put in your two weeks notice only to have your manager come back with a high counter offer. Finally! The recognition you always deserved. It’s a tough decision, but the counter is so good and will change your lifestyle… how could you not take it.?

We’ve all heard a variety of success rates after receiving a counter offer. Ultimately, Forbes has found that 50%-80% of the time, people who accept a counter offer are no longer with their company 6 months later.

1. Damaging your reputation: Everyone wants to be wanted, that includes your employer. When you give your notice to your employer you are sending the message I want to leave. The counter might be an effort to keep you, but what’s to stop you from looking again.?
2. Your reasons for wanting to leave may still exist: As biggie always said, “mo’ money, mo’ problems”. If you were looking for anything other than a pay increase, chances are the counter offer won’t fix it. There’s a reason you didn’t get the raise before giving your notice, why did it take you leaving to get an increase?
3. You may miss out on new opportunities: There is something about starting with a new company or in a new role that opens up the door to all new possibilities. There was a reason you were originally accepting the offer with a new company.
4. Your company may be buying time: Since you already let the cat out of the bag, the company might be spending the extra money to keep you a little longer so they can find a replacement.?
5. It may not be about you: People get an emotional life from being countered. Why? Because they feel like they are getting the respect they deserve. That’s not always the case. It’s cheaper to keep an existing employee than it is to hire a new one, that doesn’t mean you are valued as much as it would be a hassle to replace you.
6. You will burn a bridge:? Typically, a counter offer happens after you have already accepted an offer with another company. Going back on your word can burn a bridge with the company you signed with. If you’re working with an agency recruiter, it can also make them look bad to their clients, so it’s likely they won’t want to work with you again. You never know who can impact your career in the future.

There are perhaps some instances where counter offers actually work out, but based on research and my experience, it’s not very common. My advice is always assume your current company is going to counter you, and make up your mind about the response to a counter before you receive it. If not, you might be accepting it for the wrong reason.