Have you ever been presented with a counteroffer? As an IT Staffing firm who contracts hundreds of C-Level and specified technology positions, Remy Corporation is very familiar with counteroffers. Depending on the situation, a counteroffer can be extremely conflicting and uncomfortable. Where there are many reasons for an individual to accept or deny a counteroffer, there are a few key factors to consider before making your final decision.

       1.The Underlying Issues Are Not Resolved

There are many reasons for someone to consider a counteroffer; the culture, it’s familiar, or a desired salary increase. However, there are also multiple reasons to leave. Those existing problems you have within the company are not resolved after accepting a counteroffer. According to the Harvard Business Review, studies show that 50% of workers who accept a counteroffer leave within the first 3 months, and 80% leave within the next year. Although the counteroffer may temporarily fix one problem, it will never fix them all or might create new ones. It’s beneficial to document all your pros and cons with your current job before committing to an offer.

        2. Loyalty Exposed

Whether you’ve been at your current job for 3 months or 10 years, once your employer is aware that you were pursuing other opportunities, your loyalty to that company is unmasked and often tainted. This can affect your work environment drastically, jeopardizing your potential growth within the company. For instance, an upcoming promotion or bonus may be withheld because your employer is now questioning   your devotion to the position and the company.

According to the Harvard Business Review

“…nearly 80% of senior executives and 60% of HR leaders cited diminished trust and compromised reputation among the executives and board members of the employee’s current company. Nearly 80% of senior executives and 67% of HR leaders cited the same consequences with the board and executives of the spurned company. And 71% of senior executives and 67% of HR leaders also said that superiors in the current company would question the employee’s loyalty going forward.”

Most employers would rather not invest in an employee who is planning to leave soon.

       3. Your Value was Overlooked Until Now

Financial expectations are popular motivations when seeking new job opportunities. However, if your employer offers you a desirable rate after you intend to leave, this could indicate that they had the means to pay you what you deserved but did not. Employers who truly value their employees demonstrate this through desired salary increases, bonuses, better benefits but most importantly, they follow through on their promises. Therefore, you should be aware that if your employer is prepared to offer you an unexpected counteroffer, they always needed you but have been devaluing you as an employee until now.

       4. Low Chance for Career Progression

Counteroffers generally come with a raise and a promise. They may be enticing and justified, especially if your advancement within the company has been gradual. However, now that you have been offered more money, your organic growth may come to a halt. Reasons for this are the significance of your position may have been underestimated, your preferred salary exceeds the company’s budget, or the counteroffer reaches the position’s pay threshold. LinkedIn published,

“Most companies have strict pay scales for each level and position, so you might end up having a lower adjustment when your next pay revision or review is due.”

Before accepting any counteroffer, make sure your current employer provides you with a written agreement of what is to be expected with this offer AND its future progression within the company. If your needs are not met in a written contract, then you should seriously consider turning down the counteroffer.

At the end of the day, our careers play a huge role in our lives. There are usually always reasons people stay but there are also multiple reasons why people leave. If your current job does not fit your life goals or does not make you happy, it is perfectly acceptable to turn down their counteroffer.

References

1. Kay, K. and Cullen, M. (2019, January 30). If You’re About to Take a New Job, Should Your Boss’s Counteroffer? [Blog post]. Received from https://hbr.org/2019/01/if-youre-about-to-take-a-new-job-should-you-consider-your-bosss-counteroffer
2. Phan, W. (2018, November 9). 10 Reasons Why You Should Never Accept a Counteroffer When You Resign. [Blog post]. Received from https://www.linkedin.com/pulse/10-reasons-why-you-should-never-accept-counter-offer-when-wendy-phan/
3. The recruitment knowledge network. (2016, March 10). The Truth About Counter Offers. [Blog post]. Received from https://ukrecruiter.co.uk/2016/03/10/the-truth-about-counter-offers/
4. Harvard Business Review (2016, September). Why People Quit Their Jobs. [Magazine Post]. Received from https://hbr.org/2016/09/why-people-quit-their-jobs
5. (2019, June 11). The Truth About Counteroffers from a Recruiter’s Perspective. [Blog post]. Received from https://www.progressiverecruitment.com/en-be/blog/2019/06/the-truth-about-counteroffers-from-a-recruiters-perspective/