There are a lot of mixed opinions about counter offers and whether you should accept one or not. We explore why businesses make counter offers…and why you shouldn’t accept one.

Even though a counter offer often looks like an attractive option, there are many reasons why you should not accept one if you’re offered it.

1. Your
Loyalty Will Be Questioned – Make
no mistake; the relationship you had with your manager before you resigned
and then accepted a counter offer will never be the same, regardless of how
long you’ve worked together. In fact, it can hinder future success at your
current employer. So even if the counter offer is a good deal, you’re more
likely to progress in a new company in a role you haven’t threatened to
quit.

2. It Will Not Guarantee Job Satisfaction – A counter offer may give hope of better working conditions and/or an increased salary, but statistics show that once the ‘sugar hit’ of a new title and bump in salary wears off, 60% of people who accept a counter offer leave within 12 months. The root cause for wanting to depart in the first place still may not have been addressed. Or worse, the fine points of your counter offer never actually materialize.

3. Your Employer Might Not Be Paying You Enough – A lot of counter offers include a pay rise, but this leaves a crucial question. Why has it taken a resignation for your employer to recognize your contribution and worth to the company? When this happens, it is good to do some research and know what your true market worth is.

4. Your Employer Doesn’t Know How Long You’ll Stay – If you end up accepting a counter offer, your employer will always be questioning (even if this question is unspoken) how long you will stay with the company since you were so willing to quit. You are more likely to be viewed as expendable than other employees who have not handed in their resignation.

5. Counteroffers Can Be a Stalling Tactic – Employers will often offer to pay you more because it’s an inconvenience to them and the team to lose a competent and experienced staff member. It’s easier to counter an offer with more money than to address the real problem. It’s not unheard of for employers to start searching for a replacement who will take a lower salary with a similar skillset to yours.

6. Annual Bonus Time – Regardless of your performance, if a discretionary bonus plan is in place, you may have already received part of your annual bonus within the counter offer you accepted a few months ago. This actually happens more than people realize. If you’re going to accept a counter offer, this is definitely worth checking.

How
long does it take to get a counter offer? 

Some organizations have a strict policy of not providing any counter offers, regardless of the individual or circumstances surrounding the resignation. If you do receive a counter offer, it will typically arrive within 72 hours of resigning (if at all).

How to decline a counteroffer

This is an area in which many people are underprepared, and then fumble through an awkward conversation. It’s important to be polite and professional, and keep the discussion short and specific. Thank your current employer for the opportunity to work for the organization and you appreciate them wanting to keep you, but the decision has already been made. You may even want to put your disinterest in your resignation letter, so that your employer doesn’t make a counter offer (if you need help with writing this into your resignation letter, we can provide a template).

For 25 years, Hanover has been helping organizations to identify, engage, recruit and assess executive level talent and key individuals for specialty/technical markets. Our experienced staff and high search completion rates minimize the risk of counter offers influencing successful search outcomes, due to experienced assessment and screening of the candidates and knowledge of our clients.