Should you accept or reject a counter offer?

You’ve decided to look for a new job.  You’ve gone through several tough interviews and you’re excited to have been offered your dream role. You  hand in your resignation and then your employer makes you an enticing counter-offer, making you reconsider your resignation. What should you do?

I had a coaching client a couple of months ago who was in that situation. He’s been in his company for 1.5 years and he really enjoyed the job, however he felt he was being paid below the market rate and he also didn’t see opportunities to progress in the short-term. We worked on his interviewing technique, and soon enough, he landed a new job he was excited about.

But when he went in to resign, he immediately got a counter-offer and called me to discuss. I’d never tell someone what to do in a similar situation, but I’ve asked him a few questions about both jobs and offered my perspective.  He had an honest conversation with his Manager about what he is interested in and what this other company was going to give him the opportunity to do. He also mentioned the offer which was 20% higher.

In the end, he decided to stay since his current employer offered him a 15% increase and opportunity to take on additional projects.

He was also about to buy a house, so it’d make sense to stay in the job for longer. So far he is still there and happy, but counteroffers don’t always end up so well.

How do companies respond

I’ve seen companies using counteroffers very occasionally as a retention tool, especially if the employee resigning is particularly critical to the company or if their salary was below market level. Yet, most of the US companies I’ve worked for don’t like the practice of offering higher titles and salaries, just to maintain the status quo.

The reasons people start looking for a new job are often more to do with the fact they are not challenged enough or don’t get on with their boss. Those reasons won’t disappear if you come back to your desk with a higher salary.

As an employee, you can almost always get more money if you can get another job but from the employer’s perspective, you have to wonder about that employee's commitment.

If you get the counter offer though, before you make the decision which can impact your career for years to come, it’s important to weigh up both options carefully.

Which job will develop your skills and take your career in the direction you’d like to take it? How do you feel about each organisation and your direct manager in each company? Which job offers a higher compensation?

Here are some points to consider when you get a new offer and your current employer is keen for you to stay.

• A lot of sources online, e.g. this article from Hays prove that “people who accept a counter-offer have subsequently left their job anyway within twelve months. In fact, a great many are gone within three to six months.”
• Before making a decision on whether to accept a counter-offer from your current boss, get very clear on the reasons you’ve decided to resign. What did the new company offer you? Is it better money or a role with more responsibilities? It obviously must have been more attractive than your current role for you to resign in the first place. It might be a good idea to write a list with pros and cons of each job to help your decision-making process.
• Assess your career goals - is now a time to work super hard and push for that next promotion? Or maybe you need some breathing space and it’d be easier to stay in a job where you already have a good reputation, know how things work etc.  Maybe you’re about to get the mortgage - in which case, it’d be easier to stay with your current employer
• If you are leaving because you’re feeling under-appreciated, receiving a counter offer might come as a surprise. But why did you not get that pay rise until you’ve threatened to leave? Don’t be surprised if the company will only keep you on until they find a replacement. Your loyalty will always be questioned from now on. If your Manager did not think you deserved a pay rise before, why are they only offering if when you’re resigning? Most likely, it is only because they don’t want to deal the hassle of finding your replacement. Do you really want to work for the company who only recognises you once you hand in your notice?
• Will your company make the changes they are promising? Let’s suppose you’ve decided to resign for reasons other than money. Your Manager promises to sort out whatever problems have influenced your decision to leave. However - will it really happen? Is your boss normally keeping their promises or are they all talk and no action? Think about it before potentially accepting a counteroffer. If you decide to stay, get whatever they are promising you in writing, so you have something to reference.
• Since you’ve made your employer aware that you are unhappy, your commitment will always be in question. You may not be considered for promotions since they will question your loyalty and if times get tough, you might be the first one to fall victim to potential cutbacks. It will also be easy to become the person who’s always blamed when something goes wrong!

In my experience of exit interviews, the No. 1 reason people resign is for a better job opportunity - rarely just for a higher salary or more benefits. Everyone’s situation is different but think very carefully before you accept a counter-offer!

Have you ever accepted a counter-offer? Did it or did it not work out for you? Please let me know in the comments!

Author bio:

Margaret Buj is a talent acquisition professional and a Career & Interview Coach who specializes in helping professionals to get hired, promoted and paid more. She has 12 years of experience of recruiting for global technology and eCommerce companies across Europe & the US, and in the last 11 years, she's successfully coached hundreds of people to get the jobs and promotions they really wanted.

Recognized as one of LinkedIn UK's Power Profiles in HR, and with an award-winning blog, she's spoken at career events & conferences and has done training sessions or workshops in London, Monaco, Athens & Saudi Arabia.

Apart from mastering your interviewing skills, Margaret can help you in discovering your unique selling points and in creating a self-marketing strategy that enhances your reputation with a consistent online and offline brand presence. She's also been featured in Cosmopolitan magazine, interviewed for The Financial Times and Management Today, has written "Land that Job" e-Guide. Find out more and get her free interview resources at at www.interview-coach.co.uk