COUNTEROFFERS: THE DECISION TO ACCEPT OR REJECT AND HOW TO HANDLE IT

With many employers struggling to retain good quality IT staff, professionals are increasingly likely to be presented with a counteroffer when they announce their resignation. These enticing offers can cause you to seriously reconsider your decision to leave, whether they offer you a promotion, more flexibility, and responsibility, or a pay raise. But that's exactly the point.

The decision of whether or not to accept a counteroffer is an important one that may have a lasting impact on your career. It's a fantastic issue to have. If your boss/employer is willing to up the ante in order to keep you, you're obviously doing something right. Moving on to a new company, on the other hand, may provide you with additional benefits and opportunities that your current employer does not provide.

It can be difficult to decide whether to accept a counteroffer, and there are numerous factors to consider.

Aside from salary, the costs of advertising your job, filling the vacant position you leave, and training a new hire can total tens of thousands of pounds. Furthermore, many IT and digital jobs are currently difficult to fill due to current skill shortages. Such difficult positions can remain open for months or even years, inadvertently costing companies money by delaying them from meeting their objectives. Employers do not make counteroffers because they like you and will miss having you around. Although their counteroffer may make you feel special, the main reason businesses make counteroffers is to save money.

What is a Counteroffer?

A counteroffer is an offer made in response to another offer. It is an employer's bid to keep a high-performing employee from leaving in a recruitment scenario, and it is usually made after the employee has handed in their notice. A counter-offer is intended to persuade you to reconsider your resignation, and it usually includes a pay raise or promotion.

Employers make counter-offers for the following reasons:

- To keep the employee's knowledge of the company, customers, and processes.

- To save money on hiring and training a replacement.

- To avoid burdening the rest of the team with extra work.

- Keeping employee morale and team relationships high.

Why You Might Accept a Counteroffer

Over 50% of employees accept counteroffers. At the time, it can seem like the right decision as you won’t have to master the working methods of another company or build relationships with new colleagues. Being offered more money is one of the most common reasons that employees will accept a counteroffer. This will work well if you are satisfied with your current position, like the company, and get along well with your work colleagues. You get to stay in a place that is comfortable for you, and you are fairly compensated for the work that you do.

Accepting a counteroffer should be done with caution, as the employer may question your loyalty to the company, and you may be perceived as only interested in financial gain. 80% of employees that accept a counteroffer leave within six months and 90% within a year. Proving that money isn’t always enough to overcome the problems that made you want to look for a new job in the first place.

Why You Shouldn’t Accept a Counteroffer

Unfortunately, there are more reasons to turn down than accept a counteroffer.

Consider the Reasons for Wanting to Leave

Getting a raise is, at best, a temporary fix. Only 12% of employees resign for financial reasons; poor work-life balance, a lack of career development opportunities, and a lack of benefits are increasingly motivating factors to leave. So, chances are you're looking for a new job for other reasons than a higher salary, and these reasons aren't going away with a higher salary. Consider why you started looking for other opportunities in the first place. Most likely, salary was a factor, but it was not the only one. Perhaps you felt stuck, with few opportunities for advancement, or you realised you were comfortable but not reaching your full potential.

Trust is Broken

Accepting a counteroffer will almost certainly harm your relationship with your current employer. Your resignation will be interpreted as a lack of dedication to the company. The desire you expressed to leave may indicate that you are not as loyal or committed as other employees, which may have an impact on your career development as you may be passed over for promotions in favour of co-workers who have not attempted to leave.

Will Things Really Change?

The frustration, suffocating feelings, and dissatisfaction that drove you to look for new opportunities will remain, and the raise in pay is unlikely to make them any less unbearable. Whatever turned you off about your job before the new offer will irritate you even after you accept it. Perhaps you were passed over for a promotion or were simply not given the opportunity to advance. You most likely expressed these concerns to your employer at some point, but they were not effectively addressed. These issues are likely to persist after you accept the counteroffer and will eventually force you to resign – this time for good.

Will my Job Security be Affected?

Accepting a counteroffer significantly reduces your job security. Your boss has worked hard to keep you from leaving, but you can bet that when it comes time to make redundancies or reduce personnel, you'll be near the top of the list because you've already tried to jump ship. This desire to leave may indicate that you are not as loyal or committed as other employees, which may have an impact on your career development as you may be passed over for promotions in favour of co-workers who have not attempted to leave.

How to handle a Counteroffer:

Whatever your reasons for resigning are, don't accept or reject a counteroffer right away. Here are some suggestions for dealing with a counteroffer.

Speak with your manager about the terms of the offer- Go to your manager and ask them why they want to keep you. Is it because you are valued, or is it just to save money on turnover? You don't have to make a decision right away; ask for a day or two to think about it. Take some time to think about their proposal so you can be confident you're making the right decision.

Compare the offer with your new job offer- Compare the strength of the counter-offer to the offer from your prospective employer. Consider factors other than salary and benefits. Consider which company will best help you advance your career in the long run. Where can you grow the most? Which provides more opportunities for advancement? Consider which company best aligns with your values; company culture and vision are important factors to consider because they can influence how engaged, motivated, and happy you are at work.

Speak to your Recruitment Consultant- If you're using a Recruiter, notify them as soon as possible about the counter-offer. They'll have been through this process with other candidates before and can give you their professional opinion on what else you should think about. It is in their best interest to assist you in making the right decision, as their client will be looking for candidates who want to stay long-term and advance within their company, rather than leaving after a few months and returning to their previous employer.

Revisit your reasons for leaving- Most counter-offers include a pay increase, but money is rarely the primary reason someone leaves their job. Many people look for work elsewhere in order to improve their work-life balance, gain more experience and responsibility, or work in a more dynamic work environment. Consider why you looked for a new job in the first place, and whether the counter-offer meets all of your requirements.

Listen to your inner voice- You've probably heard the advice to 'trust your gut' or 'go with your gut'. This is also true when looking for a new job. Although you should be methodical in weighing the benefits and drawbacks of the counter-offer versus the new job offer you've accepted, if you have a nagging feeling that staying isn't the best option, pay attention to it. Whether it was due to a lack of inspirational leadership, limited opportunities, or subtle office politics, your inner voice was telling you to leave and look for another job, and ignoring it could cost you in the long run.

Making a Final Decision

It can be difficult to decide whether or not to accept a counteroffer. It is critical to consider each of the previously discussed points and create a list of pros and cons. You may discover that you require additional information about your potential new employer. In this case, it's often best to consult with your recruiter so you have all the information you need to make the best decision for your personal and professional development.

If you want to begin searching for the job but want to look at the other options, but don't know where to start. We're here. Contact us to today to find out the amazing opportunities.