Handed in your resignation but received a counteroffer from your current company? Received a counteroffer but don’t know how respond? Should you stay or should you go? Keep reading to find out whether you should accept the counteroffer!
You may believe your employer has offered you a counteroffer because they are worried about losing a valuable staff member. However, it is important to understand that for companies, recruiting, onboarding, and training new employees is a significant business expense, especially when recruiting senior level employees. Therefore, it may be cost-effective for the company to retain an existing staff member. This often follows because of the skills shortage in the market, such as in candidate-driven market we find ourselves in currently. The decision to accept the counteroffer probably seems like the most convenient option as you will not have to master the working methods of another company or build relationships with new colleagues. You are comfortable in your job role and know how to carry it out successfully and effectively. The sound of a raise does not sound too bad; therefore, it is easier to stay.
According to research from Forbes, 50% – 80% of employees who accept a counteroffer end up leaving the company within six months due to similar issues they faced earlier. Additionally, 29% of employers offer counteroffers as part of their retention strategies while 57% agree that making them is not an optimal strategy. Furthermore, 20% of job seekers decline a counteroffer from their current employers and only 15% remain with the same company for two or more years after accepting it.
5 Things to Consider Before You Accept the Counteroffer
Does it Solve the Underlying Issue
There may be several reasons you want to leave the job. This could be because of work hours, co-workers, dissatisfaction with the overall working environment, or it could be subconscious in the sense you just do not like the job in general. Therefore, when receiving a counteroffer and the only thing that is changing is the salary then this will be a problem. Increased pay may look like an attractive option initially, which compels most people to stay in their current organisation. However, three months down the line the latter could be an issue when you are once again unhappy because it was not just the salary you were dissatisfied with. As a result, if there are multiple reasons you want to change jobs and receive a counteroffer with an increased salary, reject it! There are more chances you will be happy and find personal satisfaction in another job that is more suited to you than in your current role.
Are You Now Expendable?
At this point your loyalty will be questioned by your current employer. Thus, your future success could be hindered, because by accepting the counteroffer you are limiting yourself to opportunities that could advance your career progression. You are more likely to be viewed as expendable than other employees who have not so openly shown they want to leave. If the company needs to make redundancies, you will probably be at the top of the list. After all, you already expressed a desire to leave and therefore are not considered as a loyal or committed staff member to the company relative to other employees. An even worse scenario could be that your current employer may have given you a counteroffer to buy them time to find a new employee to replace you.
As well as this, the counteroffers could be used as stalling tactics, where the employer will offer to pay you more because it is an inconvenience to them and the team to lose a valuable, experienced, and competent staff member. Consequently, it is easier to counteroffer with more money than to address the underlying problem which could be poor employee wellbeing, company culture, or offering flexible working hours for example. Showing your dissatisfaction with the latter can make you expendable too.
Salary Rise: A Little Too Late
If the counteroffer involves a pay rise, you should ask yourself why you have not been offered a salary increase following your last performance review. In the past, you may have tried to negotiate a pay rise but were refused, and in this case, it can suggest your employer has been trying to get away with paying you less than your worth. This is a pattern that could continue in the future.
Don’t be Burdened by ‘What-ifs’
Working in a company for a length of time can make it easier for you to visualise how your career will develop if you continue with the same company. It may be a comfort zone where you want to continue to work in the same environment and have the same career development opportunities. Sometimes it is worth exploring new possibilities and rejecting the counteroffer can reduce the possibility of you wondering “what if I had chosen the other job?”. Even though counteroffers can be gratifying, the risks outweigh the rewards.
Job Doesn’t Meet Your Long-Term Goals
People tend to hand in resignations or search for jobs when their current position does not fit the picture they had for their ideal life or goals. Accepting that counteroffer means you could potentially be denying yourself your dream job. If you are thinking about whether or not to accept the counteroffer, make sure that the position meets your long-term goals either now or in the future. There is no point investing time and energy into something you do not want to be doing for the rest of your life. Consequently, always think of why you wanted to leave your job in the first place.
At GRS Recruitment we support you each step of way from securing your next opportunity to answering questions about how to reign from your job the right way. Rest assured we will guide you on parting on good terms with a professional approach. The time for change is now call +357 24342720 or +356 21680800 to discuss your options.