Should you accept a counter-offer from your employer?

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Congratulations! You’ve landed your next role, handed in your notice and are getting ready to start your new job when the unexpected happens; your employer makes a counter-offer. But what is a counter-offer and what does it mean?

The counter offer

Some employers will make a counter-offer to encourage key employees to stay, often involving a pay rise, a promotion or additional benefits such as a company car or car allowance. The benefit to your employer is retaining your knowledge and skills, and minimising the impact on your colleagues and the cost of recruiting and training your replacement.

Your employer may tell you what a great job you’re doing, you’re an asset to the business and they’d hate to see you go. This is flattering, may increase your sense of self-worth and will test your loyalty to your employer but you should never accept or reject a counter-offer immediately; take some time to fully consider your options. Ask for a few days to think it over.

Should you accept a counter-offer?

It’s easier to stay of course. You know what you’re doing, you’re a key part of the team and there’s no learning curve or probationary period to negotiate.

But what were your main reasons for applying for and accepting an alternative position, and does the counter-offer address your concerns? If it was increased salary, more holiday, flexible working, greater responsibility or improved benefits then perhaps the counter-offer ticks the boxes. But if you were looking for a shorter commute, a better work-life balance, to try a new industry, learn new skills, escape micro-management or a toxic culture, those things won’t change if you stay.

The potential issues if you stay

Relationships with your team and managers could deteriorate if they feel you’re disloyal, you’ve lost their trust or they are envious of your new salary or status; or if you think your employer only made a counter-offer to avoid the cost and disruption of hiring someone new, not because they value you and your contribution to the success of the business.

The counter-offer may include an above-market-rate salary, and although that’s a positive now, it may make it more difficult to move later on when salaries for similar positions may be lower or only marginally higher.

Will resigning at a later date be more difficult because your employer may feel you’re fishing for a higher salary again and you’ll be expecting to face another counter-offer which could be difficult to refuse?

Speak to your employer

Have an open and honest discussion with your current employer to determine their reasons for wanting you to stay and what the future holds for the company. Where do they see you in 3-5 years if you stay? Get a feel for whether they see you progressing within the business or if they are trying to avoid the time and disruption to recruit someone new.

But never burn your bridges with your employer; if you decide not to stay, remain professional, be firm about your decision to leave, and thank them for the positives you’re taking away from your time with them. You may be walking away from the business, but you may come across your manager or other co-workers in the future and their recommendation, support or business network could be useful to you.

Weigh up the pros and cons

List the pros and cons of each offer on the table. Seeing the positives and negatives side by side could help you decide, or weigh up which carries more weight as part of the decision-making process.

Consider which offer makes the best use of your skills and will develop and support your future career aspirations. Salary may be less important than other factors such as getting wider experience, training, and opportunities to travel or meet new people.

If the counter-offer promises better things to come, how likely is that to come to fruition, has it been promised in the past and failed to materialise (such as extra staffing or new equipment to help reduce overwhelming workloads), what are the likely timescales and are you happy to stay on the promise of it happening?

Do you have a gut instinct to stay or go? Even when you’ve carefully weighed everything up, is there a nagging feeling that staying, or leaving, isn’t right for you? Sometimes it does pay to ‘go with your gut’.

Seek expert guidance

There is no right answer as each case is as individual as you are, but we’re here to help should you find yourself with a counter-offer to consider from your employer. If you have questions, want to talk through the pros and cons, or need advice on whether to accept a counter-offer, speak to us today – our friendly team are here to help you make the right decision for you.

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