Counter Offers – “Mibbes Aye, Mibbes Naw”?

Counter offers. Hmmmm. Very tricky subject. In the immortal words of Sir Kenny Dalglish – “mibbes aye, mibbes naw”?

Maybe (or mibbes) the best place to start is why you were looking for a new opportunity. It is rare that people explore the market, happy in their current role, just for the fun of it. There are drivers. Some of the reasons may include financial, work related, family / personal reasons though the list of why people stay and leave roles would fill a sizeable book. Maybe many volumes. Those reasons are yours so let’s move on.

You made the decision and went for it. You prepared your shiny new CV, modestly telling the world how wonderful and eminently employable you are. Your CV was delivered to a thankful Hiring Manager’s inbox (direct or via your favourite Recruiter), and an interview and selection process ensued. Information was gathered both sides, then handshakes and happy smiles. The job is yours if you want it. Hurrah!

Now pause and remember how you got here. The searching, the conversations with recruiters, the hours of research, stolen conversations over lunch, the inevitable series of lame excuse days off for interviews, and the nerve-jangling wait for the decision. Finding a new role is never easy. An offer is hard won and well deserved. There is a commitment from a new employer to invest time and resources in you. Yes, you. They want you to be part of whatever comes next for them. This is no small thing. And never forget the reasons you wanted to pursue new opportunities in the first place.

Just do it!

OK, grown up pants on and time to resign. This is not easy, but you know why you are doing it. A good employer will respect your decision and work constructively to transition you out the business and end the employer / employee relationship on good terms. A good employer understands that people don’t stay forever and will seek new opportunities elsewhere. Maybe one day you will return with new skills and experiences. No bridges need be burned.

A very poor employer may react badly, throw the proverbial toys out of the pram. If this is the case, you most certainly made the right decision. Sometimes, however, your employer will be nice. Very, very nice. They will pour honey in your ear and promise you the moon and the stars if you stay. You are now in the grip of the dreaded counter offer.

It’s not you, it’s me …

Let’s be honest about it, counter offers are not about you.  The real reason for counter offers is convenience. As flattering as it may be, we are all replaceable. When you leave, if your job needs done, someone will do it. You are not the only person in the world capable of fulfilling your role. However, the hassle of finding and recruiting your replacement may be more than your current employer can be bothered to do. Easier to just throw some cash at you. The time, effort and cost involved in replacing you is the driver.

You’ve just earned a pay rise!

The common approach for the counter offer is more money (sometimes with a promotion) to reflect how much you are really appreciated and how much they don’t want to lose you. Sounds like a win? If your only motivation is to get more money and / or a promotion, you may think so. 

If the money was always available to give you a pay rise, why has the company never done it before? News travels fast in any office. You are the person who tried to leave and got a pay rise. Is everyone getting more money? If not, is that fair? A good employer will know that a short term fix to deal with your resignation leads to medium term problems with other employees. A good employer should have your performance under constant review and reward accordingly.

There may be other issues that your current employer may try to solve with immediate actions or promises for the future. Have all your reasons for leaving been dealt with? Does it matter, now that you have tendered your resignation has your relationship with your employer changed forever?

It’s all too emotional

A career move is a life-changing decision. Scary for some. This is where you immediately doubt yourself. You are experiencing new job anxiety. Your current employer is laying it on thick. You are now considering the many unknown quantities in accepting a new job. You may convince yourself that staying with your existing employer is a better deal.

The emotional hard sell is the toughest to deal with. It may be an appeal to your sense of loyalty. It may be an appeal to complete a project or product, telling you about all the terrible consequences if you leave work undone. 

The worst of all is the promise that things will be better in the future or that more money / promotion will be realised when it is possible. I’ve got news for you, it will never happen. 

Financial and emotional pressure can be a potent mix at a time when you are feeling new job anxiety. Be aware of these approaches and the reality behind them.

Oh no, say it is not so …

You should be skipping verily and merrily to your new employer. Instead, you accept the counter offer. Now you are in a role where you have been rewarded or promoted above your peers. You may be at the top, or above, your salary banding. What now? How do others feel about you? What happens when a promotion opportunity comes up in the future, or a juicy new project? Are they going to give it to the person who tried to leave? Do your peers resent you for staying and getting rewarded for it? Does your Manager resent the extra cash you have “forced” out of their budget? Oh, what a messy business!

Professionalism, or lack thereof, is an important consideration too. Hiring Managers have long memories. And they talk to each other. Your name will be mud. Bridge burned, a pariah in your industry. Remember, there has been time and effort both sides and commitments made. It reflects badly if you change your mind. OK, from time to time some significant life event means that circumstances change and you cannot take up a new post. This happens in the real world. However, your current employer giving you some sob story and throwing money at you doesn’t count. Think about your reputation.

What do the numbers say?

I’ve seen various statistics over the years on the evils of counter offers and the numbers are consistent. Below are some sample stats that I “borrowed” from another site. I take no credit for the research behind these and stand on the shoulders of others:

·       50% of candidates will be made a counter offer on resignation

·       57% of those people will accept the proposal

·       Of those 57%, half will have their CVs on the job boards again within 2mths

·       80% of people who accept-counter offers will leave within 6mths

·       90% will not make it beyond 12mths

·       40% of business and HR leaders believe that accepting a counter-offer can damage your career

·       80% of business leaders and 60% of HR leaders said they would trust candidates less who stay after a counter offer

·       Counter-offers don’t work out 95% of the time

If the many cautionary tales of missed opportunities and broken careers is not enough – if the thousands of web pages all saying the same thing about the evils of the counter offers is not enough – look at the numbers. Do you believe you will be in the happy 5%? Are the 5% happy, or simply stuck where they are after burning the bridge to greener pastures?

There may be the rare counter offer that works out well, and they all lived happily ever after. I hope there really is a pot of gold at the end of that rainbow. Based on my experience, when your employer makes a counter offer, be polite and thank them, but stick to your guns. 

You may think I didn’t give much consideration to “mibbes aye”, and you would be right, and for good reason. Counter offers very rarely work. I’ll go further, counter offers are poison. Good employers don’t do it. Good employers don’t have to. No mibbes about it, just say “NAW”!