Should you accept that counteroffer?

One of the more daunting tasks you may face in your career is resigning from your job. After weighing the pluses and minuses of staying in your current position, you’ve worked up the courage to resign—and then you’re presented with a counteroffer to stay at your company, perhaps with a raise or a promotion.

It’s tempting to accept; after all, you’re being offered something you wanted (more money, more responsibility, better working environment, etc.). It sounds great, but what’s the reality of counteroffers? And what typically happens when employees accept them?

Counteroffers being made more often

Counteroffers are getting to be quite common: in the U.S., roughly 30–40 percent of resignations are now being met by counteroffers. And counteroffers have only become more frequent in the last 12 to 24 months, as employers are more determined than ever to hang on to good employees. We at Queen Consulting are witnessing this trend first-hand, as companies want to retain skilled IT candidates rather than go through the time and expense of seeking, competing for and training new employees in this hot field.

The realities of counteroffers

While many employers and employees undoubtedly go on to have a long, productive relationship after a successful counteroffer, it’s actually much more common for the opposite to happen.

Naturally, we at Queen Consulting don’t always know what occurs when one of our candidates accepts a counteroffer and stays with a previous employer ... but we do see enough to know that it can frequently be much less than successful. Our experience is backed up by research that shows that nearly 90 percent of employees who accept counteroffers are no longer employed at that company within 6 months—and the figure rises to 93 percent after 18 months!

Queen Consulting Recruiting Director Jennifer Gilmore explains that in addition to offering more money, often the organization makes promises to address work issues that the resigning employee has objected to—yet, these are the kinds of changes that often fail to materialize, leaving the employee coping with exactly the same environment he or she had resolved to leave. “Change in organizations is difficult,” says Gilmore. “It’s like turning a ship. Those considering a counteroffer have to be realistic about the potential for the change occurring and the amount of time it can take.”

There are many reasons to be skeptical about accepting a counteroffer:

There will be an unavoidable trust issue, now that your employer knows you were looking to leave. You may no longer be part of the “inner circle,” and may even be shut out of their long-term plans.

• If your company offers higher compensation, it’s fair to wonder why they didn't value you enough to pay you that before.

• Likewise, if promises were made for better assignments or more opportunity, why wasn’t your potential being recognized already?

• Will the issues that prompted your job search be resolved if you stay? Even if intentions are good, will the change happen in a reasonable timeframe?

• Unfortunately, many employers assume that you are likely to leave once more, and begin to look for your replacement even while you’re continuing to work for them.

A partner when dealing with a counteroffer

Candidates who work with Queen Consulting have a partner when it comes to handling a counteroffer. We examine why you are seeking a new opportunity: is the assignment concluding? are you seeking a growth opportunity? is the team dynamic at your current job unhealthy? Once we develop a complete understanding of why you wish to leave, we guide you through various counteroffer scenarios and help you map out a response.

“We don’t want a candidate to be surprised,” says Gilmore. “We make sure they’ve considered all options before a counteroffer is made.” Often this includes making a pro/con list of the benefits and risks of accepting a counteroffer. “We coach our candidates to do an internal reflection before responding.”

We recommend that you take this approach when your resignation is met with a counteroffer:

• Be proactive: be prepared to receive a counteroffer and plan how you will react. You may even want to role play to polish the words, tone and emotion you will use to respond.

• Be realistic: your relationship with your employer changes once you resign, because an element of trust is eroded; you may be viewed as not fully committed to the team. Even if you accept a counteroffer, that level of trust remains damaged, decreasing your job security.

• Be firm: remember the reasons why you sought a new opportunity and be resolute in your commitment to following through on your new path.

• Be professional: the most important time you’ll have to make an impression with your employer is during your first two weeks and your last two weeks. Once you have resigned and turned down a counteroffer, maintain your professionalism, strive for a smooth transfer of knowledge—and leave a positive impression with your former employer and coworkers.

As a candidate working with Queen Consulting, you can rely on us to coach you through the entire process of seeking a new engagement, including moving on from your previous employer in a professional and well-thought-out manner.