You Got a Counteroffer…

Expect a counteroffer & how to handle it: An employee’s prospective

This is a timely topic with how the job market has taken off and there are no signs of slowing down anytime soon. Unemployment is continuing to fall after an uncertain two years during the pandemic, workers have had time to reflect on what they really want to do and seek to find more happiness at work, which includes more flexibility. There are stories of your friends or co-workers getting ridiculous pay increases, the ability to work remotely on a permanent basis, and other insane perks as they accept new job opportunities with different companies, and you think to yourself…maybe I should look too? Do I deserve more?

This leads to the topic of preparing for the job search, including the inevitable counteroffer. There are certain steps you must take and things to consider before you enlist a recruiter of choice from your DMs, or decide to search on your own. This includes truly evaluating why you are looking in the first place and deciding if what prompted you to look is something you can get at current job before you embark on the search.

This is a critical piece because you can save yourself and others affected by your job search valuable time by first going to your boss or employer and letting them know you will consider looking elsewhere if they’re unable to meet your requests. If there is nothing that can be done, then you should be committed to either accepting the outcome and staying put in your current role, or decide to make a change elsewhere. At this point, you can be confident in your decision to make the change and therefore, do not accept any counteroffer presented after you receive a new offer of employment.

There are many who will say they are afraid to talk to their employer first about why they’re unhappy at work and ask for change in fear of retaliation or termination. If that’s the case, your answer should be clear that you are ready to find another role. It should never get to the point of having another offer in hand as leverage to finally feel comfortable negotiating your needs with your current employer.

You might think there is no way you will get a counter, or the company can’t compete, but you absolutely will receive one. This is one of the first conversations we have in our initial meeting to prepare our candidates, because we see it almost Every. Single. Time., especially in this competitive market. You have to expect your current employer will offer you something to stay, which typically includes more money or future promises after you’ve already accepted another offer.

In a recent conversation with a candidate I have not personally worked with, but engaged in conversation by responding to my video on counter offers, she explained that she has an amazing offer in hand by a new company, but she is conflicted and is considering giving her current company the opportunity to keep her when she renders notice because, that’s what she thinks is the right thing to do. She explained that she loves her company, but she was contacted by a recruiter and was open to a discussion because, “candidates are in the drivers seat” and has come to realize her company is underpaying and undervaluing her as an employee. After hearing her thoughts, which mirror what we are seeing in the job market, I gave her this advice:

Pros and Cons

You should first consider what you have now and how the new offer or potential offer compares. Actually write down a pros and cons list of what you would need to make a change and what you currently have. This will help you to see the real differences and what could quite possibly be a no-brainer decision based on these hard facts.

It’s easy to allow emotions into the equation when the decision needs to be made off of facts. This is where most struggle and end up accepting a counteroffer because they feel bad and don’t want to put their employer in a bind.

Be ready, because many employers absolutely will play the guilt card when you put in your notice. You have to do what’s right for you and your career, not because you are guilted into staying. As an employer, it’s never easy to lose an employee, but ultimately you must accept their decision and support their need for change.

Solicit Advice

Once you have made your pros and cons list, if you still are struggling with the decision, solicit advice from those you trust. If you are working through a recruiter, discuss your concerns and ask questions. Typically, skilled recruiters will be able to help you during the decision process by providing more information about the employer, setting up additional meetings with the client to help get unanswered questions addressed, and can give you an honest perspective dealing with similar situations. The best recruiters will give you unbiased advice based on the facts and can help guide you. Ask your professional mentors and others you trust in the industry who know you and perhaps have more experience. Having a sounding board from multiple sources helps to ensure you are making the right move when evaluating the pros and cons of each path.

Expect the Counter

Due to the talent shortage, employers are pulling out all the stops to keep talent when they get a resignation from an employee without really considering the ramifications it could have on that individual and the business. Typically, its not personal, they just can’t afford to lose staff-it will likely affect them negatively with rehiring for the position and the time it takes to train someone else.

It’s been said that if you accept a counteroffer, you will likely leave within 6 months to a year either on your own terms or be forced to leave the company. Unfortunately, through my experience of over a decade, this is almost always the case. I say this every time and will continue to say it…there is a reason you considered looking elsewhere in the first place, whether that be because you are being underpaid, unhappy with the culture, your boss, lack of flexibility, or limited growth. There are reasons that compelled you to look and most likely the counter offer can only offer a band aid to one or more of those reasons. Ultimately, there is not a quick fix to most of the problems you face, and you will most likely be looking again in the near future.

Research has also shown that if you do decide to accept a counteroffer, resentment could build with your employer for feeling like they were strong armed into offering you more, as well with your co-workers, who will perhaps not be getting the same increase or flexibility you received with the counter offer. Keep in mind that if there are cuts to be made in the future, you could be the first to go as you could be paid over the company standard or have special perks that the majority do not have. Unfortunately, we have also seen employers use the counter offer to buy them time to find your replacement on their terms because your loyalty is now in question.

Professional Credibility

Accept your new offer if it’s a better career move after evaluating the offer, but make your decision final. This is important for many reasons when facing a counter offer situation, including your professional integrity.

Make your choice, but make that your final decision because “your professional credibility is at stake,” as one of my respected Controller candidates recently pointed out, which resonated with me.

Once you accept the new offer from a prospective employer, you have verbally and sometimes contractually committed by signing the offer letter that you are 100% on board. It’s unprofessional to consider or accept a counter offer after you’ve already given your word to the new employer. Think about the time invested into the processes to hire you, not only on your behalf, but also so many others including the prospective employer and possibly your recruiter, your references, and many others that were involved in the hiring.
Ultimately, you must make the decision based on facts and what is the best move for you and your family going forward. Before embarking on the new job search, because I can guarantee it will happen quickly, do your homework so you are confident in the decision to leave, pending all your criteria are met by the new company. Planning ahead of time helps to ensure the transition into your new position will be smooth and successful. Changing jobs doesn’t have to be a stressful experience- it can be exciting and can positively change the path of your future, but you must enlist the right support, evaluate the facts, and have a clear direction for change.
For more job search or career advice, contact Arkansas Talent Group here.