Return of the Counteroffer

Thrilling news to all Recruiters, Clients and Candidates everywhere **insert side-eye emoji**. The market has completely changed and now suddenly, the counteroffer is back with a vengeance. Hurrah I hear you cry. So what does this really mean? Well let’s explain it.

So you’ve asked your Boss for a raise/better hours/progression/whatever you really desire and for whatever reason, it’s not happened. You get frustrated, decide that you need some leverage and start interviewing externally (which of course your Boss will have no idea why you’re suddenly taking time off at short notice for Dr’s/Dentist/Opticians or sudden family issues…).

You get a job offer and hand your notice in and your Boss then says “What? I’m shocked. I thought you were happy! Let’s discuss this before you make any hasty decisions.” Or something like that.

Anyway, BINGO!!! Everything you wanted suddenly appears as if your notice letter was a Genie in a Lamp.

The cold truth about a counteroffer is that it is usually nothing more than stall devices to give your employer more time to replace you. No matter what the company says – you’re a risk to them and they need a contingency plan.

Ask yourself this… if you were truly worth that counteroffer, why did you have to ask for change in your role to not get it to then have to go to interviews, take time off work and use holiday, hand your notice in and ruin the trust in order to get what you want? Why are they suddenly willing to offer you what you want? Because hiring is expensive. It takes time and money and it's cheaper to keep you for a short time.

You stay, accept the proposal and over the next few months you then find things aren’t the same. Like a cheating lover, your Boss/peers aren’t the same around you. They know you were unhappy but you're still here. They know you don’t love them anymore. Things become awkward, things just don’t feel right. Also the underlying reasons that you weren’t happy before start to creep in and suddenly you are miserable at work. That extra ￡5,000 isn't going to matter now is it?

You ultimately will leave (statistics show from Wall Street Journal that 93% of people leave within 18 months after accepting a counteroffer.) and they have the replacement already in the pipeline. Sorry!

So you have now ruined the relationship with your current employer, the Recruiter you may have used and the company where you turned down the job and have to start from scratch. Doesn’t seem worth it does it?

So what next?

Firstly this goes to the Managers.

Be honest with your employees. If you don't have the ability to give them what they want or they're not worth the proposal, tell them so. Trying to keep people because it's "the worst possible time", "you've already got one role and don't need another to fill" or that "they're your best employee and losing them will affect you/your team" is the wrong thing to do.

Recognise people's worth ahead of having this situation is important. Give praise, conduct monthly reviews, work on their personal development and reward where its due. With a proper plan in place, you and your employee will know what to expect, what's needed for their next promotion or pay-rise and in turn you'll have someone who is thankful for the transparency. Encourage feedback about yourself too in forums so that any thing your teams would like to be done differently, it'll enable your growth too.

And now for candidates.

Honesty is also the main thing. Have conversations with your Manager about your development and don't be afraid to ask for it. Give your Manager time too - they can't suddenly promote you or give you a pay-rise. They'll probably need approval or chance to explore what it is you are seeking.

If you decide to start interviewing, it should be because there is no possible opportunity in your current company to get what it is you want. That way when it comes down to that pesky counteroffer, you already know your worth. 

What are your thoughts on this?