15 Oct Counter Offers – How to Deal with Them
Counter Offers – How to Deal with Them
Why is it that your current employer only ‘sweetens the deal’ when they find out that you are leaving? There are many misconceptions about counter offers, however, be sure that you are well informed before considering accepting one.
What is a counter offer?
A counter offer is an improved offer or increase in your salary to dissuade you from jumping ship after you submit a letter of resignation.
Counter offers can include?
- Salary increase
- Promise of a promotion
- New responsibilities
Why do companies make counter offers?
HR or Management usually make counter offers for self serving reasons…..these are some reasons:
- Your resignation is bad timing for them
- Your resignation may be signs that your boss or leadership is in question
- Replacement is costly and time consuming
What do companies typically tell you when they put out a counter offer?
Companies rarely tell you the “real” reason why they are offering you a counter offer. Typically their offers are structured to their benefit so that they can dissuade you from leaving. Some reasons may include:
- Not understanding your unhappiness in position
- Telling you that a promotion for you had been on the horizon
- Suggesting they were planning on giving you a raise
- Telling you that they have heard bad things about your prospective employer
Why you should turn down a counter offer.
- Counter offers are most often a means of stalling your departure to give your employer more time to find a replacement for you.
- After submitting your resignation you are viewed as a “flight risk.” Your employer now knows that you were prepared to leave and as a result you are now considered outside the circle of trust. This will impact future decisions regarding promotions and merit increases.
- If your peers find out about the counter offer they may be resentful which can affect your working relationships.
- Statistics show that those who accept counter offers usually voluntarily leave within six months (due to the same circumstances for initially looking to leave still being there) or are let go within one year due to loyalty with their employer being broken.