Why You Should Never Accept a Counteroffer
You've been looking for a new job for a while now, and finally you receive an offer. You weigh the pros and cons, and decide to accept. You sign the offer letter and discuss a start date with your new employer. Now it's time to tell your current boss. You step into the manager's office and hand in your resignation letter. To your surprise, your boss tries to talk you out of leaving and makes a counteroffer. The offer is extremely tempting-- a promotion, a raise, extra vacation days, and a few other perks thrown in. Of course, you've heard about the dangers of accepting a counteroffer, but this is too good to refuse, right? Is accepting a counteroffer really such a bad thing?
When you're considering any job offer, it's natural to weigh the benefits and drawbacks. The decision can be especially difficult when it's a counteroffer from your current employer, and refusing your current manager can seem a lot more personal and risky than turning down a new job offer. You're familiar with the ins and outs of your current company, whereas a new job has numerous unknowns. Besides, you don't want to burn any bridges or turn down a good opportunity. You're flattered that your boss wants to keep you, and you'll finally get that promotion, higher salary, or other perk you've been waiting for. What's not to like?
Why Do Employers Give Counteroffers?
Employees quit their jobs in record numbers in 2021, and experts expect the Great Resignation to continue in 2022. In a candidate-driven market, hiring becomes more expensive, and the cost of losing an employee skyrockets. To keep their best employees from bailing, more employers are giving counteroffers with a salary increase, better benefits, or other inducements. This is because it is usually more cost-effective to retain an existing worker than to hire a new employee, especially in a tight labor market where a replacement could be hard to find. From the employee's perspective, a counteroffer may look like a means of getting a pay raise or promotion without having to leave their current company.
But while accepting a counteroffer may seem like a win-win situation, it's important to consider the risks before making a decision. Sure, you'll be getting more money, but you haven’t addressed any of the other reasons that made you want to leave in the first place. If you're unhappy with your workload, stagnating from a lack of growth opportunities, or feeling unappreciated, a counteroffer isn't going to fix these problems. In fact, accepting a counteroffer can actually make them worse.
Almost Leaving Damages Trust and Relationships
Consider the situation from your employers' point of view. When you tell your boss you're quitting, your loyalty and commitment are called into question, and even if they urge you to stay, your employer may not trust you anymore. If you were willing to stay at your current job for more money, your employer now sees you as someone who will leave at the first opportunity for a higher paycheck. Since you are perceived as having one foot out the door, they may start looking for your replacement, or pass you over for future opportunities or projects. Although you may think that promotion they offered is an opportunity to grow at the company or recognition that you are a more valuable employee, in reality, you could be putting your future there in jeopardy. Some employer counteroffers are just a means of stalling the exiting employee while they find and train a new employee to take their place, avoiding costly job vacancies during a long hiring process. Even if they don't start looking for your replacement, if the economy slows or business dwindles and the company decides to downsize, they will more likely retain other employees who are considered loyal over those who have already demonstrated a willingness to leave.
Now consider your own position. The main reason people want to change jobs is because they're dissatisfied with something-- the salary, their workload, a long commute, a difficult boss, poor work-life balance, or a lack of growth opportunities. If salary or job title alone was the problem and you trust your employer won't hold your attempted resignation against you, then there's a possibility that accepting a counteroffer may be the right choice for you. However, it's important to be honest with yourself and consider whether the other factors that led you to look for a new job in the first place will still be issues after you accept the counteroffer.
Does Your Current Employer Consider You a Valuable Employee?
There was a reason you started looking for a new position, and for most employees, it’s more than a salary increase or new responsibilities. You could have asked your manager for a salary review, applied for an internal promotion, or asked to work on new projects. You started applying to new companies because you recognized there were other factors affecting your job satisfaction that could not be fixed with your current employer. “If the problem was just money, you should have gone to your boss and asked for more money,” Ryan Thomas, Executive VP & Cofounder of redShift Recruiting, points out. “Often it’s much more, and money alone won’t solve all the other issues.”
The truth is, if your employer valued your potential, they would have fostered your growth within their organization and ensured you were fairly compensated before you turned in your notice. A counteroffer doesn’t prove they finally recognized your abilities and want to help you reach your career goals. It only demonstrates that they are aware of the high cost of replacing your role and are trying to mitigate the damage your departure could cause to productivity. While more money may temporarily gloss over the problems you’ve been experiencing, after a few months it will likely be poor compensation for your bad boss, boring job, or frustrating lack of opportunities.
The Odds Are Not in Your Favor
As a quick Google search will show you, the statistics don't look good for accepting that counteroffer. Studies show that of those who said yes when their employers asked them to stay, 9 out of 10 had left the company within a year and 50% were already looking for a new job after only two months. This is because the core problems didn't change-- they were still unhappy with their workload, didn't like their boss or the company dynamics, or lacked opportunity to develop in their careers. “It just doesn’t solve the problem,” says Thomas, who has been working with candidates for over twenty years. “Anyone I’ve seen take a counteroffer is back looking within the next year.” The truth is, the counteroffer is a short-term solution that will not fix the real problems. The extra money, new job description, or improved office space can only keep them happy for so long, and once the excitement wears off, they are in the same position they were before-- bored, burnt out, and starting another job search.
Missed Opportunities at a New Job
For those who have a hard time with change, a counteroffer can seem especially tempting. You're comfortable at your old company, you're an expert at your job, and you know what to expect from the business and your coworkers. In contrast, a new company always has a lot of unknowns. Will you be successful in your new role? Will you like your new boss? Will it be a good culture fit, and how long will it take before you learn the ropes and feel settled? Making a move can be stressful, and you might think that staying put is the safer bet. If these questions are influencing your decision, keep the big picture in mind. Change can be a good thing, and a new company gives you the chance to start fresh and make new connections while offering many possibilities and opportunities for career growth. A new challenge will help you learn and grow in your field, whereas staying in the same position too long can lead you to stagnate and stall your career progression. Is it worth passing up professional growth opportunities to stay in your comfort zone?
Keep in mind that your future employer sees your potential as a talented employee, which is why they are offering you a new role. They are ready to invest in your career development and want you to succeed, so if you're feeling undervalued or stuck in your current position, a new job might be exactly what you need.
Burning Bridges
If you're turning in your resignation, you've most likely at least verbally accepted, if not already signed, a new job offer. Taking a counteroffer from your current employer means you will have to turn down the offer you've already accepted, and you may end up burning a bridge or damaging your professional reputation in the process. Not only have you wasted the new company's time and resources, but you've placed them in an awkward position, having to scrap plans and scramble to fill the position again. If you're working with a recruiter, you've also wasted their time and effort, and potentially damaged their relationship with their client. They will be much more hesitant to trust you in the future and may be unwilling to work with you at all. If you're seriously considering taking a counteroffer, think about whether you really want to give up the opportunity with your potential new employer. Once you've backed out and decided to stay at your current job, you won't be able to change your mind and get that offer back.
The Risks of Accepting a Counteroffer Outweigh the Rewards
There are a few exceptions to every rule, but in general, the risks of accepting a counteroffer are high and usually outweigh the rewards. You will miss out on all the opportunities of the new job and risk burning a bridge with your recruiter and/or the prospective employer. “When you accept a counteroffer, you put the control into your employer’s hands, and place them in the driver’s seat,” warns Thomas. If you think you want to accept a counteroffer, carefully assess whether your boss is likely to hold your attempted departure against you. At the end of the day, more money or a new title are just a temporary solution to the larger, underlying issues which drove your decision to quit in the first place, and your focus should be on determining which option will be the best career move and give long-term job satisfaction. If you are thinking about leaving your current position, don’t be afraid to do so, no matter how tempting the counteroffer looks – it will save you a lot of time and stress in the long run.
