Counter Offers - The Truth Behind
When you accept a new job offer and hand in your notice, it’s possible that your current employer will make a counter offer to incentivize you to stay. This typically comes in the form of an increased salary and benefits package and is often a substantial increase in your current remuneration. Often counter offers are delivered alongside emotional leverage about your value to the team and your time spent there. Perhaps your manager will insinuate that elusive promotion was, in fact, imminent or that the team would struggle without your expertise. While many of these comments could be genuine, a good business that values its staff would have made you feel appreciated before you felt the push to leave.
In today’s competitive job market, counter offers are becoming more common as companies strive to keep their valuable talent. However, in many cases, the counter offer benefits the company more than the employee. Accepting a counter offer can seem appealing if it means a higher salary at your current firm; however, 70 to 80 percent of people who accept counteroffers either leave or are let go within 6 months, either because they accepted another offer or were let go.
Pay increases often don’t fix the other pre-existing issues that led you to look for another job initially, meaning many candidates that do accept counter offers to resume their job search relatively quickly
While accepting a counter offer may be beneficial in the short term, you may still be better off moving on to a new opportunity.
Here is the truth about Counter Offer.
- You needed to bring your resignation to your manager’s attention in order for them to consider giving you a raise.
- Where is the money for the counter offer coming from? Are you just receiving your next pay raise early? Almost all companies have strict wage and salary guidelines which must be followed so you may only be getting an early raise.
- If you accept the counter offer, your company may start looking for your replacement and potentially let you go sooner rather than later.
- You have now made your employer aware that you are unhappy. From this day on, your loyalty will always be in question.
- The same circumstances that caused you to consider a change in the first place will probably repeat themselves in the future even if you accept the counter offer.
- When promotion time comes around, your employer will remember who was loyal and invested in the company and who was not.
- Statistics show that if you accept a counter offer, the probability of voluntarily leaving in six months or being let go within one year is extremely high.
- When times get tough and the company experiences layoffs, your employer may well begin the cutback with you.
- You used your new job offer as leverage and now may have burned the bridge with your prospective new employer who was already offering to pay you more before a counter offer.
- Once word gets out, the relationship that you now enjoy with your co-workers may never be the same. You will probably lose the personal satisfaction of peer group acceptance.
- You let yourself be bought. Rather than risk taking a new/better opportunity, your boss was able to convince you to stay after you wrote your resignation letter. They talked you out of your decision.
- Accepting the counter offer limits you from really figuring out your career path, The great irony of considering a counter offer is that there is no possible gain, only loss.
"A counter offer is not about the business reaching out to meet your needs, it’s about meeting the needs of the company at that point in time"
If you begin to second-guess your acceptance of the new job and consider accepting your manager’s counter offer, think about what else would change if you stayed (besides receiving more money). Review each of your reasons for wanting to switch jobs and take an honest look at your deal-breaker issues. Will they somehow magically disappear if you accepted the counter offer? Nope. So, look your boss in the eyes, smile nicely, and say “No, thank you” to that counter offer.