You landed a great new job. You’re excited about this opportunity to move on. And move up. However, as a by-product of giving notice to your current employer, you may well get a counter-offer – an attempt to get you to stay where you are rather than leave. That can feel flattering. But is it?
What’s in it for them?
It’s cheaper for your employer to toss more money your way – even if it’s a substantial raise -- than it is to recruit someone new to replace you. If they can convince you to stick around, that buys them time to start looking for your replacement. After all, they now know you aren’t all in, and they can (rightfully) suspect you’ll be open to new offers.
Think that sounds harsh? Consider these recent statistics:
- Phaidon International reports that 70-80% of people who accept a counteroffer are let go or leave on their own within a year.
- RecruiterBox says that number is closer to 90% gone within a year.
- UK Recruiter reports that 50% of those who accept a counter-offer are actively looking again within just 60 days.
At this point, your current employer doesn’t really care if you leave, but they want to dictate the terms and timing. That’s to their advantage.
What’s in it for you? Not so much.
Money is usually not the driver when an employee decides to leave. You know this. Your own reasons for looking elsewhere might have included a desire for a better salary or benefits, but you probably had other concerns such as:
- Uncomfortable company culture
- Overly heavy workload or long hours
- Poor relationship with your boss
- Lack of professional development and career growth opportunities, either because the company doesn’t support continuing skills education or because you’ve hit an advancement ceiling
- New return-to-office policies
- Bored with the job you feel you’ve outgrown
No matter how big a raise your counter-offer includes, more money doesn’t solve any of these other issues. Systemic problems such as those listed above are unlikely to change just because you threatened to quit, at least not in any meaningful way. You will be making more money but still working at a job you find dissatisfying.
So, just say no to that counter-offer
You were right to seek and accept a new position. Here’s why.
- If your current employer thought you were worth the higher salary, why didn’t they offer it before, of their own volition? They were deliberately underpaying you because they could. You considered another role because you wer feeling unappreciated.
- Is a new job title or bigger office going to make you like your job better? Not for long.
- If you accept a big raise now as an incentive to stay, can you expect to get another nice raise when the next adjustment period rolls around? Probably not.
- Will your next review reflect the fact that you’re no longer considered a “loyal team player” because you almost quit and the company had to “go out of their way” to retain you? Probably.
- Some other company really, truly wants you! They appreciate your immediate value plus your future potential. Go for it and make them and yourself proud.
Don’t let cold feet hold you back
For some people, receiving a counteroffer can bring a secret sigh of relief. Whew! You can stay here where things are familiar rather than having to stretch yourself into the unknown. New people, surroundings, expectations, etc. can be discomfiting. But weren’t growth and change the point of searching for a new job? The fact that you stepped out and landed that job should give you the confidence to go forth and be great. You owe that to yourself as well as the company that picked you.
And here’s something else to think about. If you do accept a counter-offer, what does that say to your would-have-been-new employer, or the recruiter and others who worked with during the interview process? You’ve wasted a tremendous amount of their time and likely prevented them from hiring another candidate who really did want the position. You’ve proven yourself untrustworthy, and they will remember that.
Politely stick to your guns
If you do receive a counteroffer, remind yourself why you wanted to leave in the first place. And think about all the reasons you’re so excited about this new opportunity. You’re a professional and you’re on your way to bigger and better things, so simply thank your employer but politely decline the offer.