How To React To Tempting Counteroffers
Nobody likes to lose a good employee to another company. Chances are that your manager will make a counteroffer to try to retain you. Counteroffers come in the form of money, promotion, or guilt for leaving the team at ‘a difficult time’. Just remember that companies only make a counteroffer because it is in their own best interest, not yours.
Inevitably, accepting a counteroffer ends badly for both the employer and employee. Research conducted by software company Eclipse indicated that:
- About 80% of candidates who accept a counteroffer from their current employer end up leaving within six months.
- 9 out of 10 candidates who accept a counteroffer will leave their employer within 12 months.
- 50% of candidates who accept a counteroffer from their current employer will be back in the job market after two months – usually when the novelty of an increased salary and new responsibilities wear off.
The very best employers rarely make counteroffers. They believe they treat their employees fairly and wish them well if a better opportunity exists elsewhere. If you work for one of them, do not be disappointed if you fail to receive a counteroffer. But if you do receive one, take a moment for a reality check.
First, executive search consultants know from long experience that there have to be strong reasons for leaving a job before most employees will consider taking a new one. If that is true in your case, have those reasons disappeared? Will staying with the job solve them?
Second, if the counteroffer includes salary or job enhancement, what is the source? Are you simply getting your next raise or promotion in advance? And will you have to accept yet another job to get the raise or promotion after that?
Third, your employer may appeal to your sense of loyalty. Ask yourself how loyal the employer has been to employees.
Finally, let us not forget that new job. Just as there are reasons for leaving your current company, you have seen significant opportunities at your new company – or you would not have accepted the offer of employment. These do not disappear the moment you receive a counteroffer.
10 Reasons Not to Accept a Counteroffer
- You should not have to threaten to resign to get what you're worth!
- All companies have strict wage guidelines. Is your increased pay coming out of your next raise or bonus?
- Expect your company to start looking for a new person at a cheaper rate.
- Now your employer knows you are unhappy or have reservations, your loyalty will always be a question.
- Will your employer consider your loyalty when promotion time comes around?
- You will be the first to go when times get tough.
- Your reasons for considering a change will repeat themselves – even if you accept a counteroffer.
- Even if you accept a counteroffer, statistics show that you will probably leave within six months or be “let go” within a year.
- A counteroffer is not only an insult to your intelligence but also a blow to your pride – knowing you were bought.
- Companies will make many promises to keep you but seldom deliver them.