What is a counteroffer, and why do experts say you should never accept one?

A counteroffer is a grand gesture made by an employer to stop someone from leaving, usually after they’ve handed in their resignation.

Various studies cited in publications such as The Wall Street Journal and The Financial Times have shown that accepting a counteroffer - tempting as it may be – is often the wrong move. This is because promises made as an inducement to stop you from leaving are rarely followed through and even if you receive a massive pay rise, it’s rarely enough to eliminate those doubts, the things that made you want to explore options in the first place, gnawing away at you.

If you’re reading this because you’ve received an offer from another company and are anticipating a counteroffer from your current employers, I would urge you to consider the situation in its proper perspective. Starting with, what really goes through a boss's mind when someone quits?

 Well, it’s usually something like… 

• “This couldn't be happening at a worse time."

• "He/she is one of my best people. If I let them quit now, it'll wreak havoc on the morale of the department."

• "I've already got three vacancies in the department. I don't need another one."

• "If I lose another good employee, the company might decide to 'lose' me too."

 And so on…

 So, what might your boss say to get you to stay? Common themes are…

• “I'm really shocked. I thought you were happy here?”

• “Don’t be hasty and make a decision you might regret”

• “We’ve got some really exciting plans for you, I’ve been meaning to sit down and go through them with you but things have been SO busy round here lately”

• "Your pay raise was scheduled to happen in a few months but we'll make it effective immediately."

• "You're going to work for WHO???"

• "How can you do this in the middle of a major campaign? We were really counting on you."

Looking at things from your bosses point of view, this is a headache they do not need and know it’s likely to reflect poorly on them. So human nature, just like the break up of any relationship, means the pain and hassle is too hard to face, so various promises are made, heart strings are tugged at and even underhand emotional blackmail tactics can be used. And, just like in any other relationship, sometimes it feels easier to stay, to not want to rock the boat, to give things ‘one last shot’.

Here at Wilson Talent Consulting, we have over twenty years of experience handling counter offers. We never try to twist people's arms into making a particular decision. We merely offer advice, based on our experience.

If you are going to accept a counteroffer, we urge you to make absolutely sure it’s the right decision, not just for now, not just for six months, but for your long term career.

Consider factors such as: 

• Why did they wait until you handed in your resignation to offer you a pay rise, promotion or better working conditions?

• Counteroffers can sometimes be nothing more than stalling devices, giving your employer time to phase you out.

• Your reasons for wanting to leave still exist. They'll just be slightly more tolerable in the short term because of the raise, promotion or promises made to keep you.

• Counteroffers are only made in response to a threat to quit. Will you have to solicit an offer and threaten to quit every time you deserve better working conditions?

We hope you make the right choice!