The business of counter offers is a tricky one… Employers use counter offers in the form of increased salary and benefits to incentivise you to stay – and let’s be honest, it feels pretty good for our egos too!
Generally, we strongly advise against accepting a counter offer, although it may be beneficial to you in the short term, you may still be better off moving on to the new opportunity. There are a number of things to consider…
1. Look at their motives…
Although it may seem like your current company is finally “realising your worth”, it is actually more a case of the company meeting its own needs at that point in time. Replacing staff with new employees is much more expensive than retaining existing staff, not to mention the time and inconvenience.
While an “increase in pay” or “a promotion” may have been “imminent”, a good company that values its staff would have made you feel appreciated before you felt the push to leave, and why did it take an offer from another company who has seen your worth for them to wake up and communicate this to you?
2. The trust is compromised
The trust between employee and employer usually gets damaged when counter offers come to the table. Employers may feel you have turned your back on the company and have shown a degree of disloyalty especially if you planned to move to a competitor. This in effect could also impact projects you are given or potential pay increases in the future.
3. It’s more than “just the money…”
Although you may be happy in your existing role, it’s probably more than just the money which led you to initiate looking for a new position. An increase in salary from your current employer may be one of the reasons but there is more to job satisfaction than a salary, for example career growth, flexible working hours, recognition etc.
4. The stats speak for themselves…
Increases in remuneration don’t fix the underlying issues which caused the employee to look for new opportunities in the first place. As such, many candidates (stats show up to 85%) who accept counter offers end up back on the job market and leave within 6 months.
5. Your future
When contemplating a counter offer, you should always consider the value of the new opportunity. Will staying at your current company offer you the same long-term career development as moving to the new company? Whilst your current employer may have offered you more money to stay, this short-term decision may not pay off in the long run and offer you the career progression you are looking for.