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That job offer you’ve been dreaming about for the past two years is suddenly a reality and the salary will make life so much more comfortable. So far, so good.
You pen your resignation, there and then, ping it off to the boss and clap your hands with glee. Within minutes, she’s on the phone, offering a 30% increase…backdated.
Whilst the counteroffer is flattering, it’s also stressful for all concerned. Today’s bosses are acutely aware that competition for talent is intense and well-intentioned resignees can suddenly find themselves in the midst of a bidding war they didn’t expect or want.
Top recruiter Lily Shippen advises caution as the counteroffer is not always what it appears and could be just a cost-saving measure.
“If you believe this could be the main reason behind the counteroffer you’ve received, there may be no real benefit in staying,” she says.
“The counter offer can certainly hamper your career development if your employer has opted to keep you on simply because it’s easier than finding a replacement.”
In a national survey conducted by Harvard Business Review about best practices in resignation, nearly 40% of senior executives and HR leaders agreed that accepting a counteroffer from a current employer would adversely affect one’s career.
Nevertheless, some 78% of senior executives and 80% of HR leaders indicated that it is sometimes acceptable to embrace a counteroffer. However, an additional open-ended question and supplementary interviews with transitioning executives and CHROs pointed to how hard it is to determine what those times might be and affirmed that the circumstances in particular cases are rarely identical.
So should you find yourself in this position, here are some considerations.
Examine why you’ve been searching for a new job
Roy Cohen, author of The Wall Street Professional’s Survival Guide: Success Secrets of a Career Coach says: “There are many reasons why people start a job search. Money is rarely the only factor. Maybe you wanted a title change, or more job responsibilities, or better work/life balance. Those are things your boss might be able to offer you to persuade you to stay. And if salary is, in fact, a reason you applied to other positions, see if the counteroffer could include a bump in pay.
However, “if you want to leave because you have a bad boss or the company has a bad culture, those things aren’t going to change if you stay at the organisation,” says Anna Cosic, a leadership and career strategist based in Brooklyn, New York. Your current company could offer you plenty of perks, but would it really be worth being subjected to a toxic workplace environment day in and day out?
How strong is the counteroffer?
Lily says it’s rare that anyone would want to leave a job solely because of the money.
She advises: “You really need to look beyond the base salary offer. Could it include bonuses, shares or equity in the company, or maybe even less hours. If the commute is difficult would the boss make allowances? Compare like with like between the counteroffer and the new job offer that you received from your prospective employer, and decide what’s most important to you.”
Find out why your boss wants to keep you
This is a key step no matter how sweet the counteroffer is. As Cohen puts it: “Does your boss not want to lose you because your position would be difficult to fill, or does your boss want to retain you because you’re top talent?”
And finally, “If your boss feels betrayed, staying at the company could make your job a lot less enjoyable going forward,” Cohen says.
Lily says, in her recruitment experience, candidates who accept a counteroffer from their current employer always end up looking for another job within 12 months.
“You should always feel valued in a role and if your boss only offers you the salary when you have another offer on the table, this is too little too late.”
Lily Shippen specialises in recruiting PAs, EA, Private PAs, Receptionists and secretaries in Manchester, Leeds and London.