Counter Offers

An Accounting Manager wanted to leave her current employer because she had unexpectedly received secondary responsibilities which were not in her original job description and also didn't allow her time to do her primary work.

After going on an interview, she received a job offer with a 20% salary increase. In response, her current employer, knowing how much they needed her, made a higher counter offer and promised her the title of "Controller" as well as an additional staff member who would report to her.

She accepted the counter offer, and less than a year later, she came to us, telling us she wanted "out."

Since accepting the counter offer, nothing had changed in her stressful day-to-day life at the company. Despite continued promises, her employer did not hire any new staff to report to her, and the extra money she received couldn't mask the fact that she was unhappy. Her new title was merely a false boost.

Counter Offer Statistics

Whenever you give your notice, you should be prepared for a counter offer: an offer by your present employer to promote you and/or increase your salary as an inducement for you to stay with the company. While counter offers may appear very attractive at first, they can sabotage you in the end.

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. Offers of a 30% pay increase are not uncommon, but long-term careers at the company after accepting a counter offer are.

If you are tempted by a counter offer, you may want to consider the following...

Counter offers compromise your integrity. The question will always remains: why did it take your resignation to entice your employer to give you the promotion or raise you deserve? The next time you want a salary increase will you have to threaten to leave again? Is a counter offer just "buying" you as well as buying the company time to replace you?

Counter offers create a false sense of security. When you accept a counter offer, your job is by no means secure. Your employer may only wish to hold onto you until they can find someone new. They may start looking for your replacement right away.

Counter offers are not as flattering as they appear. Often counter offers are motivated by a desire to avoid the hassle and cost of training someone new. So it is unwise to accept a counter offer because you are flattered! If your employer truly values you, why didn't they give you this raise or promotion before you resigned?

Counter offers postpone the inevitable. Most likely, the same reasons you wanted to resign in the first place will surface again. Is this counter offer going to make a difference in the long run? Do you really have a future with this company?

Counter offers make you too expensive to keep. Since a counter offer is not planned or budgeted, your employer may realize down the road that they cannot afford to keep you anymore. Or you may be disappointed when you discover that the counter offer is only your next raise early.

Counter offers create growing resentment. Your employer may feel that you "backed them into a corner" by resigning during what will probably appear to be a "bad time." They may resent having to "overcompensate" you in order to hold onto you, and may regret compromising their own rules and regulations about raises and promotions by making a counter offer.

 

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