At TechTalent Squared our candidates’ success is our success. We always want to provide our candidates with the most valuable information possible, especially when they are making a decision that will impact their career. We only partner with the top talent in the market. We often find that when our candidates present their current employer with their 2-week notice, they are given a counter-offer. We wanted to take a moment to share some risks and highlight a few points to consider prior to accepting a counter-offer.
Please note, if you are considering changing careers solely for a pay increase, we recommend sitting down with your manager to highlight the value you bring and discuss what you need to do to earn an increase. (Separate blog post at a later date)
Some Counter-offer Statistics
- 80% of people who have accepted a counter offer will not be at their current employer in six months
- 93% of people who have accepted a counter offer will not be with their current employer in eighteen months
- 50% of candidates that resign will be counter offered by their current employer
- 50% of candidates that accept counter offers from their current employer are active again within 60 days
- 80% of people say that relationships with co-workers deteriorate and productivity falls among employees who agree to stay
- 70% add that counteroffers are perceived by employees as a short-term cure for a long-term problem
- 60% of the managers and recruiters say they would never personally accept a counteroffer
What is a Counter-offer?
A counter-offer is when your existing employer offers to increase your pay, benefits or offer you a promotion in order to keep you in the role. A counter-offer is typically extended soon after you have turned in your resignation.
If you accept a counter-offer from your current employer, you will have burned bridges and tarnished your reputation with the new employer. They were expecting you to show up for the job, made announcements about you joining the team, and in some cases, they may have even released the person you were replacing. They invested in you. Employers (and extensive computer files) will not forget your decision to accept a counter-offer when future employment opportunities roll around. In some cases, they may even give bad referrals to other employers in your industry.
While it may seem like your current employer is fighting for you to stay, bosses do not forget that your decision was to ultimately leave. A bitter taste of disloyalty to the company often lingers and now you are expected to prove yourself and justify your counter-offer. If personnel cutbacks roll around, it’s possible your name will be at the top of the list of the first to go.
Your current boss offering to pay you more might make you feel highly valued, but chances are they are just going to keep you around until a replacement is found. Odds are that if you come to the point of leaving, your current employer did not recognize your value prior to the counter-offer. The new company recognized your potential and was willing to invest a lot of time and money to bring you onto their team. You should not have to threaten to leave to get paid what you are worth.
When the time for a promotion rolls around, the counter-offer will certainly play a factor in your chances of being considered. Between the already increased salary or perks and benefits and the desire to leave, your boss will be much more likely to deny a promotion or a raise.
Word spreads like wildfire in the corporate world, especially when there is talk of someone’s intention of leaving. There can be a shift in the atmosphere and decreased morale in the workplace, especially coming from those who feel strongly about the success of the organization. If unhappiness in the workplace was initially one of the reasons you were planning to leave before, chances are, nothing will change.
Fear of change
Change can be difficult for a lot of people, and the decision to leave a job can be quite a transition, especially if you have been there for a substantial amount of time. The opportunity for more money, perks, and benefits will sound appealing to almost anyone in the moment, however, it is important to really weigh the pros and cons of staying versus leaving. Allow yourself to look beyond the present and really look at what is best for your career-goals and ultimately, your happiness.
If you are considering a career change, send your resume to firstname.lastname@example.org