Never Accept a Counteroffer
Is there a counteroffer on the table? The best choice is to turn it down.
A number of studies have been conducted that show that about nine out of ten individuals who accept a counteroffer will nonetheless be back in the job hunt within a matter of months. The percentages reach near totality inside the still very short period of one year. Given this, it’s very clear that even the seemingly best of proposals to keep you with the company will turn out to be misguided and perhaps even insincere at best. Best advice? Never accept a counteroffer.
No matter how familiar an individual may be with the pitfalls of accepting a counteroffer from their current company, I always make it a point to cover these issues with them prior to finalizing a deal with their new employer. This saves a great deal of time and exasperation so that I don’t receive a call shortly thereafter asking me to help them get out of an environment and job they truly should have left at an optimal time.
Sense of betrayal on the part of the company.
Emotions will get involved no matter what they may say when presenting a proposal to keep you there. The fact that you were willing to depart will always be at the back (and front) of their mind and will simmer, perhaps fester, and simply lead to a relationship and environment that will ultimately become untenable. Most will view your tenure as a temporary patch until they can find someone appropriate to take your place.
Which will invariably lead them to…
Actively seek your replacement.
You’ve already shown that you’re a flight risk at any given time thus, from their perspective, it only makes sense to have a group of substitutes in mind or, even more proactively, let you go as soon as it’s reasonably possible and install someone who they feel will be more loyal to the organization. If that person happens to come with a lower salary requirement even better.
On more than one occasion I’ve been contacted by employers who were in precisely this type of situation. Almost without exception they were seeking to have a plan of change in place as quickly as possible, no matter how well the individual may have been doing in the role.
Questions regarding your position and stature within the organization.
Simply put, a counteroffer illuminates a great deal about what the company is truly able to provide regarding job scope. If they are suddenly able to put forth a substantial pay increase, additional responsibilities that lead to positive growth, or even that corner office what does that say about the manner in which things were handled up to that point?
Future salary increases – These will slow down if not falter entirely. It took the threat of leaving to prompt them to add something to your compensation package. It’s almost assured that future raises of any real value will be exceptionally difficult to obtain.
Future promotions – They were able to come up with a one-time, momentary solution that they feel might keep you there – again, just long enough to keep things covered. However, if you’re looking to move upward into other roles you can be certain that these paths will be near-impossible to climb. You are now viewed as a threat to leave at any moment thus why invest resources in someone who can’t be trusted to carry the corporate banner at even higher levels.
Inherent Issues and Problems – Clearly the current position isn’t meeting your primary and intangible needs thus it’s essential to keep in mind that a one-time concession will do very little to ultimately change that. Corporate culture, management style, life/work balance, and other areas of high importance may never properly align with your requirements.
Tough times? Guess who will be on the chopping block first.
Most well-run companies don’t put forth counteroffers. They offer fair compensation, sufficient growth space and responsibilities, have sound management and products, and promote a culture that leads to a very high retention rate. If you choose to leave, they’re sorry to see you go and wish you the best, but they also know that they will be able to attract a very qualified replacement relatively quickly.
Accepting a proposal to stay with your current company after letting them know you plan to depart very rarely turns out well for employer and employee alike. The best course of action is to simply make it clear that your decision to move on to another opportunity has been made by considering all factors involved and nothing will alter it. Never accept a counteroffer.
