Handling a counteroffer

Handling a counteroffer 

 

Counteroffers are a common tactic used by employers to retain valued employees. According to the CIPD Labour Market Outlook , 40% of UK employers have resorted to counteroffers to keep their key staff. However, accepting a counteroffer can be a difficult decision, and it requires careful evaluation before making a final call. In this article, we discuss the essential factors to consider when presented with a counteroffer while searching for a job. 

Understanding the Motivation: 

Why the counteroffer? 

Research shows that when a company replaces a salaried employee, it typically costs them 6 to 9 months' salary. This means that staff turnover can have both financial and cultural impacts on a business. If your current employer is offering you a counteroffer, it's important to consider why they are doing so. Are they trying to retain your valuable skills or are they simply reacting to the inconvenience of your departure? Understanding their motivation can provide insight into the company's commitment to your long-term growth and overall career development within their organisation. 

Evaluate the new offer 

When considering a job offer, it's important to remember why you were looking for a new job in the first place. Although it's common for employees to accept counteroffers (according to research 57%), you should evaluate whether the counter-offer addresses the reasons that made you consider leaving in the first place.  

Ask yourself if it contributes to your long-term career goals and job satisfaction. While most counteroffers may come with a better salary and benefits package, it's essential to consider if these are enough for you to stay. You may be looking for an improvement in working conditions or learning opportunities to upskill within the business. Therefore, it's essential to negotiate the offer to ensure it meets your expectations and helps you make a comprehensive decision. 

Consider the working relationship 

It's important to consider the impact of accepting a counter-offer from your current employer. Research shows that 80% of candidates who accept a counter-offer end up leaving within 6 months, which can negatively impact trust and the working relationship with your employer. While there can be various reasons behind leaving after accepting a counter-offer, it's crucial to keep in mind the reasons behind your job search. 

Review your career goals 

It has been found that workers who create goals are 6.5  times more likely to feel that their workplace provides them with enough opportunities to master the necessary skills required to perform their job effectively. Moreover, they are 7.7 times more likely to say that their employer offers them opportunities to develop their skills. If you haven't already set your career goals, now is the perfect time to assess where you want to take your career.  

Perhaps you are contemplating leaving your current job due to a more lucrative offer that aligns with your career goals. If the reasons for seeking a new opportunity are not solely financial, then you need to ensure that the counteroffer takes into account the other aspects of your job satisfaction. If such aspects cannot be supported by your current employer, you should consider how it might impact your aspirations. What could be the future limitations to your growth within that business? 

Company culture 

If you are not content with your current work environment, due to the company culture not aligning with your values and preferences, then it should make your decision to leave a lot easier. Research shows that almost three-quarters (73%)of professionals have quit a job because they disliked the company culture. In addition, 90% of employers understand the importance of finding workers who are a good cultural fit for their organisation. 

Future advancement 

Open communication 

If you choose to reject the counteroffer, it is essential to communicate your decision transparently and professionally. Try to maintain a positive tone to uphold a good relationship with your previous employer and a good reputation in the industry. Be clear about your reasons for pursuing the new opportunity, express gratitude for the counteroffer from your current employer, and prepare for your next career move. 

Trust Your Instincts 

When making a career decision, it's important to consider how each option will affect your overall job satisfaction and career trajectory. If you're unsure about which path to take, you can always seek advice from our team of consultants. They'll be more than happy to discuss your career prospects with you.  

Remember that every situation is unique, and there is no one-size-fits-all answer. Take time to assess your priorities, weigh up the pros and cons, and make a decision that aligns with your career goals and personal values. If you are still uncertain, consider seeking advice from family and friends, trusted colleagues, or even contact our teams at Huntress. We can provide valuable perspectives to help you make your decision.