The Counteroffer - And why you should not accept it.

I was recently having coffee with an old friend who was seeking my advice on what to do with her next move in her career. She is pretty high up there in the marketing world - and I always look forward to our off-the-cuff professional conversations. She explained that she has received an offer from a competitor, and was about to tell her company she was leaving. Our conversation went as follows:

“Well, first of all congrats, but second of all have you considered what you would do if your current company provides you a counteroffer?”

Her coffee almost came out of her nose, and she continued to explain there were lay-off rumors and that although she loved her current company - the role at the new company would check all her boxes. And then she said, “And besides they would never offer me a counteroffer. Would they?”

“Well what if they did?” ?I replied.?

My friend slowly sipped her coffee, and stared at me blankly. She continued to explain that this wasn’t an option, they would never do something like that, but in the rare occurrence that they did she had no idea what she would do.?

I started having flashbacks of candidates in the past I’ve prepared for this question. Regardless of the state of your company, department, product and overall business the counteroffer is always a possibility. It’s been in my DNA to have this conversation with my candidates regardless of the state-of-the-state of their current role. The counteroffer is a real life thing, and I’m here to tell you why you should not offer it as a hiring manager, and more importantly - why as a candidate you should not accept it.?

As a candidate, if you have decided to put feelers out there for your next adventure - the reasons why you are looking to leave in the first place are not going to change. If you love your boss and you love your company but would like to see change in your actual day-to-day role - that is not going to change unless you apply for another position, whether it’s inside or outside of the company.?

The counteroffer from a business happens in crisis mode, and the benefits do nothing for either side of the equation. With acceptance, your company could potentially have in the back of their minds that you were trying to leave at one point, and you could now have a target on your back as an employee who was once looking. Additionally the rumored “statistic” out there is that 70% of people that accept a counter end up leaving anyways within 6 months after acceptance anyways. As a hiring manager that is a reason to roll up the sleeves and start the search for a replacement rather than dangle the bait of a counteroffer, because you most likely are going to restart the search anyways to replace this role.?

Once you as a candidate have accepted a new company’s offer it’s best to tell your employer,? and even more specifically your direct manager, as soon as possible that you are leaving. Don’t send an email. Don’t send a text. Don’t print a letter. Be an adult and have a sit down conversation over the phone or face-to-face (whatever your work location situationship allows you). Regardless of the industry, you do not want to burn bridges, however especially in technology because ultimately everyone knows everyone, or will one day. A great manager will tell you they are sad to see you go, but understand the need to progress and move on. They have also been in your shoes and should understand the bittersweetness of the situation: empathetic that you are sad to leave, but excited to start a new venture.?

Of course they are going to be freaking out internally and pondering about filling your soon to be vacant space, but you can assure them you will help in the search in your days left, as well as provide any referrals. This is of course dependent on your timeline and that of your employer.?

When an offer from a new company is about to emerge, I talk to my candidates quite candidly and I prepare them for the situation of a counteroffer happening at this stage. I inform them that when you tell your employer you are leaving, they often plead if there is anything they can do to keep you here. Although it may be flattering to you as the candidate, I recommend you have a response ready to go in the unlikely event a counter is presented, even if it's on the spot or promised to come soon.?

“I appreciate the consideration, however I have decided to continue my career in a different direction. I would like to keep the means open for conversations in the future, and hope we can partner or work together in the future.”

Keep the conversation open-ended, and never pinpoint the reason that you are leaving in the resignation conversation. That is a follow up conversation to be had, if they request it. This is a small world and we most likely come across everyone we worked with in the past, whether it’s a prospective employer, partner, employee or client.?

If they insist on providing you a counter, and you are solidly committed to your new position, role and company - kindly decline. I tend to recommend candidates to not now use this as bait to up their current new company offer because this could literally lead to leaving a bad taste in everyone’s mouth - or worse, a resending of an offer. It’s also in bad taste to waste everyone’s time if ultimately you already know they aren’t going to retain you regardless of the number they come up with.?

The counteroffer is a sticky conversation and overall situation for all parties involved. The fact is that they happen, and it is better to be prepared to receive one and know how to handle it - rather than be shell shocked, panic and make an uninformed decision.?

As an active candidate Knowing Your Worth and Being Your Biggest Champion are values that will always be a priority in making any career decisions. Stay tuned for our continued series on recruitment, training and development.

What additional advice do you have for candidates in a counteroffer situation? Feel free to comment below!

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