A ‘counteroffer’ is an offer made by your employer in an attempt to keep you in your current role, often in response to an offer you may have received from another company.
Counteroffers are becoming ever more popular. Companies put so much time, money and effort into new hires that loyal employees can often become forgotten about.
Anyone that is currently employed and looking for work should first speak with their employer, if there is something they are not happy about. If you feel underpaid, undervalued, stagnant in your career or lacking development, speak with your boss first! You will often find they are able fix a lot of the problems in a non-pressured way that will keep relationships intact. Tell them why you aren’t happy and the explain your reasons. You will not get fired for having an honest conversation; in fact they are more likely to respect you for having it. If they can’t give you what you need, you know you are ready to move on.
There is a growing problem where employees feel they need an offer from another company in their hand to really pressure their employer to give them what they want. They use offers from other companies to forcefully get a pay rise or a promotion. This will taint a relationship with your manager and although in the short term you think you have everything you want, often these relationships are never fixed.
A counteroffer should not be an option. If you have had these conversations before you start looking, you know whether your employer can give you what you want. If they couldn’t initially and are now promising you the world to stay, you can be sure it is just an empty attempt to keep you. If they knew you were unhappy before and wouldn’t change it, why would they make the changes now? Personally, I would never want to work for an employer that does not want to give me what I want after an open conversation and only will once strongarmed into the situation.
Once you have made that decision to move on, you should stick to it. There are numerous statistics thrown around for those who leave their jobs within 12 months after accepting a counteroffer, which range from around 50-90%. But why is that? Unconsciously, you will find your output reduces and your lack of passion starts to disappear. There are also other issues with counter offers:
- You will also notice relationships change. Your boss will no longer want to make you an integral part of the team as they are aware you have been looking, they will be preparing for you to leave soon so why would they put you on the best projects? Or consider you for any further promotions/training/development?
- Counteroffers tend to be a quick fix: often money and promotions/responsibilities will mask your initial feelings. Money is the reason most people go to work but once the short-term satisfaction of a pay rise has worn off, fundamental issues are not fixed.
- Counteroffers tend to be a knee-jerk reaction from a company to the thought of losing you. They are not long thought out, strategic decisions. If you get the promotion you wanted, how quickly do you think your employer will get someone in to do your old job? Or will you be expected to do both jobs?
- You have just received a large pay rise that your employer obviously doesn’t feel you deserve, otherwise that would already be your salary. Do not expect another pay rise for a very long time. The offer you received from another company is just a starting salary. Once you have settled into the role, you will often receive another pay rise in the first 12 months.
- If the company starts to struggle for any reason, you are likely to be top of the list of those they would let go. If they know you have been looking around at other opportunities, they will often prefer to reward those that are more ‘loyal’ in their eyes.
- If you accept a counteroffer, your potential new employer may feel you never actually wanted to leave and were only using them to get a pay rise/promotion from your current role. By accepting a counteroffer, it can burn bridges with potential future employers.
In my experience, counteroffers tend to be a way of companies looking to buy time. They promise they will promote you, bring in a team you can manage, give you that training ‘soon’ to develop your career. But the reality is once the offer has expired and you are no longer coercing them, they are in no rush to recruit a team for you, put you on certain projects etc. But now you don’t have other options at your disposal.
You always need to refer back to the ‘why’ you were looking in the first place. If you have had that initial conversation with your boss before you started looking and nothing had changed, you shouldn’t even contemplate a counteroffer. Although money may appear to fix the problem in the short term, longer term the fundamental issues often still stand. And then you might find yourself having to start the whole recruitment process again very soon!
Comments