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The Counter-offer & How to Handle it

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You’ve handed in your resignation and have received a counter-offer in response… are you tempted to accept?

What is a counter-offer?

 You’ve secured a great new role and have handed your resignation to your manager! Success!

Your manager has something different in mind and responds with a counter-offer stating ‘I didn’t know you were unhappy, you should have come to me sooner’. In an effort to retain and convince you to stay in your role, your manager may offer you a salary increase, additional benefits, flexible working hours and extra vacation time. But has this offer been made for the right reasons or has the damage already been done?

 The reason behind the counter-offer

 There may be a genuine reason why companies counter-offer. Employers can sometimes become complacent when it comes to offering up promotions and benefits; it may come as a shock when somebody hands in their notice that they presumed were happy and content. Whilst it could be true, they may genuinely not want to lose you if they feel you are an asset to the team, it is ultimately in the employer's best interest to retain employees. It costs a lot more to hire and train someone new than it does to maintain the current team on a higher salary. Moreover, it can be difficult to find the right talent with the correct skill set, especially in roles that were already difficult to fill. Nearly 50% of employers counter-offer an employee that resigns.

 So, should you accept?

It can feel like the safest, easiest option to stay in your current role and sometimes it does work out to be the right choice. However, Around 80% of candidates who accept a counter-offer end up leaving within 6 months and 50% of candidates that accept a counteroffer from their current employer will be back on the job market after two months.

After the novelty of a pay rise and additional benefits wears off, you will still be left with the same reason/s why you wanted to leave and took the next steps in handing in your resignation. Always remember the reason! On top of this, your employer may feel that you are not loyal or committed to their company, so when the time comes that they make have to make some employee redundancy choices- your name could be top of the list. Often employees that do stay begin to feel pushed out and eventually leave.

Should I stay or should I go?

Reasons to stay:

·      Familiar with the company and employees, therefore saving introductions/meeting new colleagues

·      No risk of the unknown in a new career/role

·      Happy with counter-offer benefits/pay rise

·      No hassle of moving companies

Reasons to go:

·      Could terminate your employment as soon as your project is finished knowing that you don’t want to stay

·      First out when it comes to redundancy

·      Loss of trust from management

·      More money may not equal guaranteed happiness

·      There was a reason why you looked for a new role elsewhere

·      Management may keep you on until they find someone new

·      Are they keeping you on for staff retention purposes only

·      There could be a new, exciting adventure/career waiting for you if you take the risk-everything involves risk, no risk no reward!

·      Meeting new people that could become lifelong friends

Are you on the career path that you hoped for? Will staying help to achieve your goals? Are there better opportunities out there for you?

If you or someone you know is in this position and would like some confidential advice from a Talent Partner, please contact one of our team today, we would love to help you make the right choice for you.