Key Points to Consider When Presented a Counteroffer
Posted by The O'Connor Group on July 22, 2021
We are in a candidate driven market. Companies now more than ever, are struggling to retain their employees. Candidates who are interviewing often do not expect a counteroffer or even think that their employer will offer one. Some even think, “Counteroffers are great, right?” You most likely get a bump in compensation and maybe some additional perks, but below I will explain why candidates should be cautious and careful when presented with a counteroffer.
For the last couple of weeks you have been interviewing for a new role. You get the offer you wanted, and everything looks good for you to start at your new employer. When you tell your current employer your news, to your surprise they start discussing the possibility of a counteroffer. You did not even realize this would be a possibility, but the more your current boss explains what you will get in this package, you start thinking maybe the counteroffer is better. When this happens, it is important to pause and think about a couple key points before accepting the counteroffer.
First, think about why you started interviewing. If you were strictly looking for more money, then maybe the counteroffer is enticing. But if there were other aspects of your job that caused you to start looking in the first place, make sure you remember those reasons. While an increase in compensation now from the counteroffer sounds great, it may not improve things for the long term: your boss’s leadership style, company culture, commute, work life balance, responsibilities, etc. Do not get caught up in the dollar amounts when there are many other points to take into consideration. Truly remember why you were looking to leave and understand that those reasons will not change and improve even with a counteroffer.
Next, take into consideration that if you accept the counteroffer, how will that affect your status in the company moving forward? Your boss still knows that you were looking to leave. Depending on your relationship, if there are future layoffs or demotions, who do you think is at the top of the list? While the counteroffer keeps you there for now, it does not ensure your future when your current company needs to make changes. If there is a future decision to make is between you and someone who they know will be “loyal” moving forward, then you might find yourself out of a job.
Although counteroffers may seem exciting and make you feel valued in the short term, always remember your long-term goals and overall happiness moving forward.
This information is provided for informational purposes only and should not be taken as legal advice. The O’Connor Group makes no representations as to the completeness, suitability, or validity of any information contained herein and will not be liable for any errors or omissions.