How To Handle a Counteroffer While Job Searching

When you think of the job search, there is another component you should consider besides the interview and offer: The counteroffer. It’s a?normal part of the process and one that is actually more expected by employers than you might think. The counteroffer, a return offer made by someone who has rejected an offer, is a way to continue the job-negotiation process and increase your chances of success.?

By Helen Harris

You are thrilled when you receive a phone call from the interview you had last week receiving a verbal offer.?

Everything the hiring manager says sounds great except for the salary, which is ten thousand dollars below your ideal amount. You’ve been in the job market for close to a year, so you’re hesitant to push back. However, you’ve done your research and this is below industry standard.?

Before you end the call, you first thank the hiring manager for her time and then inform her that the salary is below your desired range, but you’d like to know if it’s negotiable. You both agree to touch base in a couple of days with more specifics.?

Already armed with your research you consider the pros and cons of writing a counteroffer letter.?

Why You Should Consider a Counteroffer?

“Employers expect negotiations,” said Melanie Denny , personal branding consultant, international career speaker and award-winning resume expert. “They're not expecting you to just take the first offer. That said, of course, as long as there were no conversations indicating that the salary was non-negotiable.”?

So while it may seem incredibly risky to submit a counteroffer to a job offer you just received — if you know exactly what you want, have done the research and are ready to move forward with negotiation, it could be a very smart career move.?

And when it comes to research, Denny advises that you do it specifically on the industry you're in, the region you’re in, your skill level, credentials, education and training. She suggests that you make a list of all the things you value in a company before entering a negotiation.?

“There are also things to consider in a counteroffer such as culture fit, upward mobility, maybe more vacation time,” said Denny. “There's tons of things that you could also consider.”?

Denny notes that you should ask for a range with the lowest being the “walk away” number — meaning you will not compromise below that amount.?

When a Counteroffer Could Set a Bad Precedent?

While the premise of a counteroffer is to increase your pay, benefits and PTO and generally negotiate other terms, there are aspects to be wary of.?

For example, you’ve been offered a position that pays more than your current job. You submit your resignation, but your manager counters with a $10,000 salary increase in an effort to retain you. You decide to take the offer.?

What can go wrong?

Well, a lot actually. Starting with the fact that you wanted to leave the job in the first place because you were unhappy.?

"If you send a signal that you're unhappy, and if your boss personalizes your desire to leave, then staying doesn't make sense no matter what they offer you," Arlene Hirsch, a Chicago career counselor and author, told SHRM . "Your motives will be suspect from that point on."?

SHRM investigates the validity of extending counteroffers further, revealing that 57% of all employees who accept counteroffers change companies within the following 24 months. Ultimately, this presents the question of whether there is any long-term value associated with accepting counteroffers.?

The simple answer is that a counteroffer cannot fix workplace culture problems that may be bothering you. It may not address your needs, wants or desires for a workplace or career, and cannot guarantee that you’ll be happy in that same environment in five-plus years.?

If you are using a counteroffer as a band-aid for your career and workplace challenges, you’ll end up in the same position time and time again. And hiring managers agree. According to SHRM , 60% say that any employee can be replaced, and 45% say that they perceive counteroffers as a short-term cure for a long-term problem.

“Taking a counteroffer from an existing employer comes with risks,” said Lynne Williams, online career educator. “They may counteroffer a higher salary long enough to find a replacement for you because they may now view you as a flight risk, so to speak.”

What To Include in Your Counteroffer Letter

Before you even begin a counteroffer letter, Williams advises that you speak up when that initial salary is mentioned (most likely in a verbal offer).?

She recommends that you can ask if the salary is negotiable and if you can set up a time to talk in a couple of days to discuss the opportunity further.?

“You don't have to make a rash decision,” said Williams. “You might have a couple of potential offers pending, so you don't have to give them an immediate response. Take time to make a chart of pros and cons for the compensations and benefits, and also factor in your lifestyle. And above all, trust your gut.”?

If your intuition is telling you to counteroffer, Denny emphasizes the following aspects to include in your letter:?

• Gratitude: “Thank you so much for this opportunity …”?
• Excitement: “I’m excited for this new opportunity …”?
• Specificity: “I’m looking for one more week of PTO and a salary range of $75-$80,000. I hope we can come to an agreement.”?Be as specific as possible here.
• Transition: “I appreciate your offer, but I came to this decision based on market research …” Present your findings here (only as the data relates to the job, not personal costs and other external factors).?

Denny also states that if you do have multiple offers, you could consider offering that information in the letter, too — as it can be a great bargaining chip.?

A counteroffer is a negotiation, and negotiations can go on indefinitely (until someone gets annoyed). With this in mind, once you submit your counteroffer or if your current employer counters an offer you received from another employer, Denny advises to not let the process exceed two rounds.?

Williams adds that you have to be a cautious risk taker and determine how much is going to be too much during this delicate transaction. For instance, if an employer makes an offer, you counteroffer and they accept — and then you counteroffer again — this could be incredibly off-putting. The offer could then be rescinded.?

“That's why it's important to already know what you want,” said Denny. “Have it ready to go and know your non-negotiables. That way, when the time comes, there won’t be a whole lot to think about.”?

Top Takeaways?

How To Handle a Counteroffer While Job Searching

• Most employers expect negotiations.??
• If you know exactly what you want, are prepared with your research and ready to move forward with negotiation, a counteroffer could be a very smart career move.?
• If you do have multiple offers, you could consider offering that information in the letter, too — as it can be a great bargaining chip.?
• Do not let the counteroffer process exceed two rounds.?
• A counteroffer cannot fix workplace culture problems that may be bothering you. It may not address your needs, wants or desires for a workplace or career, and cannot guarantee that you’ll be happy in that same environment in the future.?