What is a counter-offer and how to handle it if you receive one?

In recruitment, counter-offers are intended to make candidates reconsider their resignation and an employer’s bid to retain a high performing employee from leaving. Why do employers make counter-offers you ask? Well, there’s a number of reasons, but the main ones tend to be; minimising the costs of hiring and training a replacement, passing on extra workload to the team and maintaining employee morale and relationships.

80% of candidates who accept a counter offer from their current employer end up leaving within 6 months.

Firstly, there are pro's and con's with every situation, but there would’ve been a initial reason for handing in your resignation, so if you do receive an offer from your possible new employer that could be a better option for you. However, if your current employer tries to counter-offer that, think about why you wrote that resignation letter in the first place, it could be;

• The work environment – Was it stressful, toxic, high turnover, or not receiving enough support?
• Not having a good relationship with your manager – You may miss out on promotion or training opportunities if your manager feels you are not fully committed.
• If your employer is only counter-offering you, to save them money and time on training someone new, then it probably means they don’t value or appreciate you!

How does one handle a counter-offer you ask? Well, first off don’t accept or reject the offer straight away… have a think and here are some tips for dealing with one...

What are the terms of the offer? Speak to you current manager...

Is it because they appreciate you immensely or they just want to avoid high turnover costs? Make sure you ask for couple of days to think about it, to ensure you’re making the right decision.

If you’re going through a recruitment agency, speak to your consultant...

They would’ve been through this process with other candidates and will be able to give their professional opinion on the situation.

Compare the offer with your new job offer...

It’s not all about the money! If your current employer just offers you more money, your future career growth is just as important, if not more so, than short term financial gain.

Listen to your inner voice and make your decision...

The phrase ‘go with your gut’ or ‘trust your instinct’ are two very important bits of advice when finding a new job. If you’ve got a feeling, however big or small, that staying put isn’t the right thing to do, listen to it. Otherwise, it could cost you in the future! Once you’ve decided what you’re going to do, let your current employer and your Recruiter/new employer know as soon as possible.

In conclusion, counter-offers can be both beneficial and detrimental for both employers and employees. While they can help to retain talent and provide openings for career growth, the majority of them are only a short-term relief and can cause strain and trust issues in the workplace. Employers and employees should carefully consider the pros and cons of counter offers before making any decisions.