More
and more people are switching careers. In fact, 56% of today’s workforce are
actively looking for new jobs, according
to Forbes, a 51% increase from 2022. But
the decision to explore new opportunities leads to a common dilemma - the
counteroffer.
When
you’ve handed in your notice and mentally prepared for your next career
chapter, your current employer can throw in a curveball, asking you to
reconsider.
Their
offer might be tempting, whether it’s a salary increase or a promotion - but
there are important factors you need to consider. By following the steps in
this guide, you’ll be able to successfully navigate this critical juncture in
your career and make the right choice for you.
Counteroffer motives: Is your employer really
enticing you to stay?
From
your employer’s perspective, encouraging you to stay is a strategic move that
mitigates the impact of losing a valuable employee. There are several reasons
behind this:
1. Retaining talent is more cost-effective than
onboarding new staff
2. Your departure may create operational gaps that
are challenging to fill
3. They want to avoid a ripple effect where
more staff feel empowered to leave
4. Your departure could trigger a drop in team morale and
increase their workload
5. The persistent skills shortages means
employers can’t afford to lose skilled staff
Hanover’s guide to navigating a counteroffer
It's
essential to know how to accept a job offer or counterproposal strategically so
it aligns with your long-term career goals. While understanding how to
negotiate salary is a critical skill, money is the least important factor you
should consider.
Step 1: Why did you resign in the first place?
Receiving
a counteroffer
can skew your decision-making in several ways. You may feel grateful and swayed
by the familiarity of your current workplace or the promise of more pay.
But
it’s important not to let your emotions affect your judgement. Take a step back
and remember what caused you to resign in the first place. Reconnecting with
your motivations allows you to gain clarity and align your decision with your
long-term goals.
Step 2: Assess the value of each role
Assess
what brings more value to your professional journey: your new job offer or
staying with your current employer. Create a list of pros and
cons, considering factors like:
- Financial benefits
- Responsibilities
- Growth opportunities
- Workplace culture
- Work/life balance
Also
think about the potential outcome of each decision. Accepting a higher salary
at your current workplace might mean more money, but it could also stunt your
growth. Meanwhile, accepting the original offer of a new role could mean more
potential for career advancement.
Step 3: Look at the history
Do
your own research before
accepting a counteroffer. By examining industry
benchmarks, salary surveys and market trends, you’ll have a better
understanding of whether a seemingly attractive proposal matches industry
norms. Also examine how your company treated previous colleagues who accepted
an offer to stay, being sure to pick up on any patterns.
Equally
important is to look at the broader statistics. For example, research reveals
that counterproposals are short-term solutions - 80% of
employees leave their company only six
months after accepting one.
A
CIPD
survey shows that 40% of employers counteroffer with
higher pay - but negotiating salary isn’t the issue. Global
research by Microsoft lists work/life balance and
lack of flexibility as the top reasons why employees resigned in 2022. Why is
this important? It shows that just because your employer offers more money, it
doesn’t mean you’ll be any happier.
Step 4: Know the potential implications
Accepting
your employer’s offer carries hidden risks that negatively impact your career
in the long run. For example:
- Your employer will lose faith in you. Your
decision to leave diminishes your loyalty, meaning you’ll be passed over for
things like promotions
- Your career won’t progress. 50% of candidates who decided to stay in their
existing role are back on the job market after two months
- Your colleagues could resent you for
not being a team player. This compromises team dynamics and work culture
Step 5: Negotiate until you know the deal is
right
Whether
you’re accepting the new job or choosing to stay with your current employer,
negotiate until you’re 100% happy. This involves understanding how to negotiate
salary, responsibilities, flexible hours and any extra benefits.
You
can even use your employer’s offer as a negotiation tool when navigating how to
accept a job offer from a new company. Doing this reinforces the value you
bring to the table and prompts them to reevaluate their proposal.
Approach
this tactfully, focusing on the positive aspects of both opportunities rather
than pitting the companies against each other. Skillful
negotiation ensures your next role meets
your expectations.
To stay, or to go: what’s the verdict?
Declining
your current employer’s counteroffer to stay
can bring more benefits than drawbacks to your career. Exploring new
opportunities adds variety to your career, leading to personal growth, new
skill acquisition and a broader network.
Accepting
is only a temporary solution. The underlying issues that prompted you to resign
will likely persist, not to mention the limited career growth you’ll experience
by staying in your comfort zone.
How can Hanover help you navigate your next career
move?
Whether
you choose to accept a counteroffer or seize a new opportunity is entirely up
to you. We hope that by reading this guide, you understand how to make a
decision that reflects what you want to gain from your professional
journey.
To learn more, explore Hanover’s range
of articles on how to champion your next
career move. If you’re among the 56% of people looking for a new role, Hanover
will help you do it through our industry-leading services. To find out exactly how we can
transform your career, contact us today.
