When on the hunt for a new job, there are many variables to keep in mind—where to apply, how to prepare for an interview, and whether to accept a job offer. A wrinkle that is sometimes introduced at the end of the process is when your current company proposes a counteroffer to entice you to stay. A counteroffer can seem like a tempting way to increase your salary while staying in a familiar environment…but oftentimes, accepting one may not be in your best interest. According to the Harvard Business Review, 50% of employees who accept a counteroffer ultimately leave within 12 months anyway.
Read on to learn more about counteroffers, and why they may sometimes prove too good to be true.
When your company provides a counteroffer, they are doing so with the understanding that you were planning on leaving them for a new opportunity. Often, this can lead to a breakdown in trust, as you and they both know that your loyalty to them isn’t ironclad. Accepting one and staying in your current role can, therefore, cause uncomfortable shifts in the energy of the workplace and the interactions with your superiors. They know you wanted to leave; you know you wanted to leave…that is an awkward elephant-in-the-room to start sitting in on your meetings.
Unless money or a title change was the only reason you were looking to leave your current company, the issues that caused you to consider moving on most likely still exist. It’s only a matter of time before those same problems start building and creating the same friction as they did in the first place. A counteroffer is a reflection of your company’s desire to have you stay- it’s not buy-in from them to address your concerns and change the actual environment of the workplace. At the end of the day, you have to decide whether you can live with these problems, or whether they will inevitably drive you to consider leaving again.
A counteroffer from your current company is done in response to you receiving an offer from a new organization. To accept, you would need to tell this new organization that you are no longer interested. It is not a great look to turn down an offer from a new company to stay where you are, especially after going through their entire interview process, meeting potential new team members, potentially filling out applications and undergoing background checks, and presenting yourself to them as someone who will accept and is intending to join the team. Doing so could burn bridges and tarnish your reputation with that company (and, if an agency was involved, with them as well), which could hurt you in the future when and if you decide to re-start your job search.
One thing to remember when presented with a counteroffer is that it is inherently reactive, not proactive. Did you make your concerns or wishes known before starting your job search? If so, why did it take you potentially leaving for them to recognize your value and strive to reward it? Counteroffers often are tinged with a “too little too late” element, which can lead to resentment or negative feelings, even if they are accepted. Companies should acknowledge and validate what you bring to the table before they are confronted with the possibility of you getting up to leave.
Counteroffers can be seen as tempting ways to cut short a job search, but it’s important to remember all the reasons that led to you starting the search in the first place. On average, people spend roughly one-third of their lives working – make sure you are spending that time at a company where you feel valued, respected, challenged, and heard (Gettysburg College).
If you’ve assessed your situation and determined it may be time to move on, please reach out to us at Market Street Talent; we’d be happy to help you find your next opportunity.