Counter offers - the pros and cons

You’re unhappy with your present job, so you’ve been job hunting after hours and during lunch. Finally, you land a new position but when you give notice to your current employer, your boss says, “We don’t want to lose you”. Now what do you do?

In this article we explore the Pros and Cons on whether to accept the counter offer.

Before jumping at a counter offer, think long and hard. Ask yourself this – If you were worth your existing salary yesterday, why is your company suddenly willing to now pay you more money today? Was your employer just getting you on the cheap before?

What constitutes a counter offer? Usually enhanced pay and conditions, potentially a promotion or promise of better conditions.

Accepting a counteroffer can have numerous negative consequences. Consider these top reasons to say “no” to a counteroffer:

1. You had to quit to get a raise. Suddenly you became more valuable after you give notice? It should make you wonder why you weren't valuable enough to deserve a raise before–when you were coming into the office every day and dutifully attending to your job duties. What likelihood is there for pay rises in the future after accepting a counter offer?

2. Things won't change. The frustration, the stifling feelings, and the dissatisfaction that led you to seek new job opportunities will remain, and it's unlikely that the bump in pay will make those things any more bearable. Whatever turned you off about your job prior to the new offer will continue to be irksome after you accept it.

3. You may be shunned. When you give notice, you are, in effect, dumping your boss. As in many types of relationships, the rebuffed party begins to bargain: Give me another chance. Things will get better. I can change! No one, after all, wants to be the dumpee. But once your boss' anxiety is eased and you've agreed to the counteroffer, new emotions will set in: resentment, suspicion, distrust. You will likely spend your remaining time at the company on the fringes–excised from the inner circle for your show of disloyalty (and co-workers may resent the raise and how you got it).

4. Job security will diminish. Your boss fought to keep you from quitting, sure. But when it comes time to lay off some people, it's a safe bet that you'll be somewhere toward the top of the list. Remember: Your boss wanted you to stay for their benefit, not yours.

5. The cost of losing you. Recruiting someone to take your place will possibly require a salary about what you have now been offered, time and money lost while finding your replacement and bringing them up to speed, possibly a fee to a recruiter or for ads, and taking valuable time to recruit someone whether through a recruiter or internal sources.

6. Are they serious? Accepting a counter offer is an insult to your intelligence and a blow to your personal pride knowing that you have been underpaid for a number of years. 

7. You're going to leave anyway. Statistics compiled by the National Employment Association confirm the fact that over 80% of those people who elected to accept a counteroffer are not with their company six months later.

8. You've already accepted an offer. And what about the new job offer you already accepted? By virtue of hiring you, that employer already has demonstrated a belief that you are valuable (and you haven't even had your first day yet). Your current employer, on the other hand, has begrudgingly offered you more money to get you to stay to suit his purposes.

On the flip side, there are several reasons to accept a counter offer:

1. Familiar Work Environment: Staying with your current employer after accepting a counteroffer means you can continue in a familiar work environment. There's no need to adjust to new colleagues, management, or surroundings, which can help you maintain productivity.

2. Enhance Your Self-Worth: Accepting a counteroffer can enhance your self-worth and confidence as a professional. When your employer makes a counteroffer, it signals that they recognize your value and want to keep you on the team.

3. Continuity in Your Role: One advantage of accepting a counteroffer is that you stay in a role you're already familiar with, avoiding the need for extensive retraining. You can continue performing your duties with confidence.

4. 4. Salary Increase: A counteroffer often comes with a salary increase, whether from your current employer or a new one. This means you could earn more for doing the same or similar work, increasing the value of your time.

5. Career Advancement Potential: Staying with your current employer after receiving a counteroffer can also open doors for future career advancement. Knowing that you’re open to other opportunities may prompt your employer to offer you a promotion, recognizing your importance to the company.