Counter Offers

In Executive Search we see shocked companies making counter offers all the time. Counter Offers are to be expected, especially at Executive Level. No company wishes to lose their top players. Almost half of all employees recieve a counter offer when they hand in their resignation and as such throughout the interview process we always ask our candidates how they would react to a counter offer, as it is usually the case that a company will try to keep them, at least as an interim step. However, in our experience acceptance of a counter offer is never a good idea.

You will feel flattered or pressured (or both!) by your company pulling out all the stops to keep you. These are colleagues you will have known potentially for many years, some of them will be your friends, you will feel emotionally invested in accepting their counter offer or you will feel guilty if you do not. Remember why the new position appealed to you, and the opportunity you might be missing by taking a counter offer. When you accept a job offer after a lengthy interview process you go through the pyschological motions of leaving your current role. You will already have weighed up the pros and cons of leaving your current company and your resignation is the culmination of that decision.

The Counter Offer is usually a reactive step which sadly doesn't work. An increased salary or new title is usually your next promotion and pay rise early, and if you were worth this to your company they would have paid you this much and raised your profile without you having to quit first. Despite treating you very well in the immediate future your current company will consider you a risk and in our experience they are usually making contingency plans. It is easier and cheaper to keep you for more money for now. In 4 out of 5 cases, counter offered employees still leave within 12 months. It buys the company time ie: longer than your notice period to find a replacement. The company ultimately will view you as an untrustworthy employee. Your commitment will be in question and any company cutbacks are likely to begin with you. You will have to prove yourself again, as if you were a new employee.

If you decide to take the counter offer, you must remember that your resignation will not be forgotten. If you decide against the counter offer aim to leave on good terms and thank the company for the opportunities that they have offered you whilst in their employment. Tweet