Dealing with a Counter Offer

After a lengthy application process, you’ve finally been offered a new job. You hand in your notice, ready to wave goodbye to your “old” company—then your manager hits you with a counter-offer. It might be extra perks, opportunities for career development, or a new title, but mostly it comes down to more money.

The internet is awash with articles about the perils of the counter-offer and why you should never consider it. Those articles are well intentioned, and often pretty accurate, but it’s important to remember that they are also frequently written by recruiters, not the job seekers themselves. For that reason, some do tend to be a bit self-serving. Of course, a recruiter would never want a candidate to renege on an offer, meaning a loss of commission and valuable time spent in the hiring process (this comes back to remembering who the recruiter works for[KG1] ).

Recruiters talk about all the negative aspects associated with the counter-offer, and often quote the “statistic” that 80% of people who accept a counter-offer are no longer with their company after six months. I don’t doubt that many people in this position do end up leaving, and in general I do agree that accepting a counter offer is usually a pretty poor idea – it simply doesn’t provide a sustainable solution to the issues that most people are trying to fix by changing jobs. However, this line has been around for years now, and honestly I’ve never seen any real data to back it up—so it is perhaps best taken with a grain of salt.

When making a decision, it is important to consider all your options, including the counter-offer on the table. It’s also important to think carefully about why your current company wants you to stay. Be honest with yourself: is the company worried about losing a valued staff member, or are there other reasons to try and retain you, most of which are to their benefit, not yours?

Almost half of employers offer a counter-offer when an employee resigns. Hiring, especially at a senior or specialist level, is expensive. It’s also time-consuming to find and train a replacement to the level you would be at in the role. Yours might also be a role—and this is prevalent in the procurement space—where there is a skill shortage, and it’s challenging to find the right fit.

There is a laundry list of reasons why someone, hypothetically, should never accept a counter-offer—just look on any recruitment website. If your company is suddenly offering you a better package, why did it take your resignation to do so? Was your contribution not valued previously? It’s also worth remembering that there is a reason you began your job search in the first place.

That being said, the counter-offer might be a good path forward for you. It’s important to weigh up the internal offer the same way you would an external one. Which is the best financial reward when you consider the overall package, including any perks, benefits, equity, and bonuses? What makes the best use of your skills and helps you develop new ones? How does each role serve you on your career journey? How do you feel about each company and the team you’d be working with?

It’s also worth considering what you would leave behind if you choose to move on. You have built up relationships with all kinds of stakeholders, some of which you’ll need to start from scratch in the new company (though this may be the appeal) as well as a reputation and potentially years of service. Normally, dramatic progress and pay rises will be the result of a company move, but it’s worth considering it might take you even longer to climb the ladder once you get there.

While we are quick to dismiss a counter-offer, there are some instances where it could be the right thing for you and your career. It is important to think objectively. Every candidate should feel confident in entertaining all of their options, which includes critically thinking about the potential consequences and incentives of staying. Consider the fit at your current organization, the potential fit at your new organization, and all of the perks, career development, and renumeration that go along with both roles.