Why you should never accept a counteroffer
After looking for a new role and finally managing to secure one, your current employer may offer you a counter offer to entice you to stay. Some people do decide to accept this, and it may work for a few, but for others it will turn out to be a big mistake!
The upsides of this is that you will be offered more money than you are on and possibly even more responsibility and career progression which all sound great! But there are usually more downsides.
Research has found that 90% of employees only stay for a year after accepting a counteroffer, as regardless of the money and progression, there is usually an underlying issue that has not been addressed. Most employees leave within 6 months after accepting. Your reputation within the company can also suffer; your employer may not see you as trustworthy anymore after going behind their backs and looking for another job and attending interview.
The main reason for your company offering you a counteroffer is the hiring costs that getting someone new in could create. Hiring new staff is expensive; the process takes time as does the training. Thus by securing an employee, these costs and time taken can be reduced by just offering you a bit more money.
Therefore, it is usually better to stand back and consider the offer as a whole, rather than just focusing on the money aspect. Also, take a moment to think about the reasons you started looking for a new job in the first place.
In Summary:
Accepting a counteroffer is usually a rather bad idea!! However, if you do receive one in the future, remember:
DO:
- Take time to consider the offer and prepare your response
- Be sure to get the counteroffer down in writing
- Ensure to evaluate it thoroughly – is it more than a simple pay rise? What will accepting this offer do for your long term career plans?
- Find out whether or not it includes training
- Remember that by accepting this offer, it is unlikely you will get another pay rise in the foreseeable future.
DON’T:
- Allow yourself to be distracted by your ego and the sudden unprecedented attention
- Forget your reasons for looking for another job in the first place
- Accept the offer on the spot – take time to think it over
- Believe all the promises made to you
- Expect a sudden turnaround in the company culture and transparency – it won’t happen
Sources: monster.co.uk and skywatersearch.com
