You’ve been offered a great new job, but after you hand in your notice your current company offer an attractive counteroffer. What do you do?
Whilst it is very flattering to receive a counteroffer, it is important to not make a knee jerk reaction and ask yourself the following questions…
- Why did you consider a new job in the first place?
Changing jobs is not something you would choose to do so you must have had good reason to explore the job market and consider leaving your current role. Perhaps you’ve been lacking motivation, not being challenged, dislike your manager or team, not progressing your career quickly enough, or fallen out of sync with the company values since you joined.
There are plenty of reasons why it might be time to move on and often these are not just about money. It can feel flattering to get a pay rise and feel you’re wanted, but it’s unlikely to be a long-term solution for you unless you can feel confident that the underlying issues that made you want to leave in the first place are likely to be addressed.
According to research, 39% of people who accept a counteroffer end up back in the job market within a year. Also, there is a high risk that whilst you might have addressed some, or all, of the reasons you wanted to leave, you have broken the trust agreement between you and your employer. Employers often panic when faced with a resignation and want to buy time to be able to put in place a solution that doesn’t expose the business. This can you leave candidates that accept a buy-back exposed with the risk that future promotions become limited.
- Weigh up your decision carefully?
Normally your initial reaction to a counteroffer will be emotional, impulsive and its always nice to feel wanted. Loyalty and affection for your current colleagues and workplace will also play a part too.
It’s important however to separate the emotional side of leaving your job with the reasons behind your decision. It can feel like going through a break-up when you leave your job, but you need to try and distance yourself and be rational. Therefore, you should take a few days to consider your options and draw up a list of pros and cons and discuss the issue with family and friends you trust. In this way, you can make sure that your decision has been carefully considered and isn’t just based on an initial emotional reaction.
- Why are you only being offered a pay rise now?
Normally a counteroffer includes a pay rise. Money is certainly a significant and compelling reason to stay but what risks and conditions come with this and does it compensate sufficiently. You also need to ask the question why did it take you to resign to get the pay rise? It’s a clear indication that the company did not feel that you warranted the rise, and if they did, why were they not the ones coming to you with a pay rise? Also, how would any future pay rises look now that they have been forced to increase your salary.
You therefore need to consider whether you would have been rewarded for your hard work and contribution to the company if you hadn’t handed in your notice.
From a business perspective, it’s frankly cheaper and easier for a company to pay a bit more to retain an existing, valued employee rather than invest in recruiting, training, and developing a new starter. So, you need to realise that it is less about valuing your services than reducing the time and cost of replacing you. So, it’s important to look to the future and think about your position in the long run, when the novelty of increased pay has worn off.
- Will your future in the company be affected?
Like it or not, your perception within the company will change after you resign as the trust has been broken. Going forward most employers will be concerned that you are not fully engaged and if another opportunity came up you could be a ‘flight risk’. So those future doctor or dentist appointments may be frowned upon more or you may get more questions about you’re whereabouts.
Your commitment to the cause will also be questioned and therefore there is a risk that this could affect future promotions or internal moves. People have long memories and will not want to risk the potential risk and disruption of you resigning again.
- What makes you happy?
If you’ve been feeling excited and ready to begin working in a new environment and a more fulfilling role, this is a very telling sign that you shouldn’t accept your counteroffer.
Whilst it’s tempting to stick to what you know, with the benefit of a bigger pay cheque, taking the time to evaluate your options will mean you don’t regret your choice in a few months’ time.
So, make sure that, whatever option you choose to accept, it’s for the right reasons.