A counteroffer is when you have handed in your notice to your current role, and they offered you an increased salary and benefits package to entice you to stay.
As nice as this may seem, and as easy as it may be to just stay where you are rather than starting somewhere new, these counteroffers are more beneficial to the company than they are to you. Around 70-80% of people who accepted counteroffers either still leave or are let go within 12 months.
It has shown in research that it can cost as much as 213% of an annual salary to replace the position of Senior Executive. The company does not want to waste money and time trying to find new employees, interview them and train them to the same level that you would be at. The company would also struggle whilst there is a gap in your position during the entire length of this process.
A counteroffer coming through may seem like your employer is finally pulling out the stops and making an effort for you. Unfortunately, most of the time the offer is more about meeting the needs of the company than meeting your needs, you resigning would, simply put, be more inconvenient for them than spending a little more money.
You have to really think about what they are offering you; would the difference in pay really fix the issues that led to you looking for new work.
If you are considering accepting the counteroffer, you need to think about these important factors:
- Once you hand in your notice, you have already made the decision in your head to leave, that seed is not easily unsown and the ‘What If’ will always be there.
- It’s not always about the money, sometimes life will be better to take a little less money and have a happier work life.
- You could have already spoken to your employers about the issues that have made you want to leave, and it’s taken you handing in your notice for them to make decisive action.
- Your job security will decrease drastically, if there are redundancies in the future, they will consider your name as you have already expressed a desire to leave.
It’s not just about assessing the potential pitfalls of a counteroffer, but about considering the value of new opportunities. Will staying at your current company offer you the same long-term personal career development as moving to a new role?
While your existing employer might have offered you more money to stay, these small gains in the short term might not pay off in the long run. From an advancement perspective, you may be better off taking a new role that can offer you the progression you are looking for, which may have not been offered in your current role.
Always, when given a counteroffer, take your time and make the best decision for you and what could work for you best in the future.
Please read our attached Counteroffer Document which has a more in-depth breakdown of what to consider when you are experiencing a counteroffer.
