Don’t Accept that Counter-Offer!
After putting up with all the frustrations at work, you decided to look elsewhere. You found what looks like a great job with another firm. You interviewed, they offered you the position, and you accepted. Congratulations!
Now comes the hard part – quitting your current job. But then, something happens that you didn’t expect.
Your boss makes a counter-offer.
What should you do?
Experts, from recruitment firms to game-theory specialists, all agree – it’s a bad idea to accept that counter-offer. Here’s why.
1. Your boss is looking out for himself.
This shouldn’t be a surprise, but it’s easy to be flattered by the offer. Just remember: your boss has ulterior motives. Your quitting makes him look bad. It’s inconvenient. It means more work.
That counter-offer doesn’t mean your boss suddenly values you. It means that he or she wants to be in control. Finding and training your replacement will inconvenient. Maybe your boss figures that it may be easier to keep you on, even with a pay raise – for now. But he or she might be just fine with replacing you later – when it’s on the company’s timetable.
2. What’s really changed?
Honestly – was your salary the only thing that made you start job-hunting? If you asked for a raise and were turned down, well, it sure doesn’t feel good. But chances are, there was more to it than that. Toxic work environments, disorganized leadership, poor communication, or in-fighting can all lead to frustration. Or maybe you just feel like you need a change.
And something made you feel good enough about the new offer to accept. A good question to ask is: Would you take the new job if it paid exactly the same as your current salary? If not, then think carefully. A job worth taking offers more than money. It offers a positive work environment, opportunities for growth, a corporate culture that appeals to you, and an appreciation for your skills and talents.
3. They don’t value you.
If you had to be ready to quit before they would offer you a raise, think twice before accepting. Clearly, they don’t appreciate you. And being courted by another company may make them momentarily re-evaluate your worth, but they may also be resentful. Your boss may suspect that you’re just threatening to quit as a tactic. And if that’s what it took to make them finally offer you a better deal, then maybe you were right to look elsewhere.
4. …And they still don’t.
You’ll be the first to be laid off.
Your boss fought to keep you from quitting, sure. But when it comes time for lay-offs, it’s a safe bet that you’ll be toward the top of the list.
Some company cultures are unforgiving of employees who look elsewhere. Here’s what goes on behind the scenes. A former partner of a major accounting firm tells this story: “I was in a meeting in which a counter-offer to an employee was approved. Immediately afterwards, my boss told me, ‘We can’t afford to lose him now, but our No. 1 priority is to find a replacement, ASAP!’ And we replaced him within a few months.”
5. Your reputation and relationships may suffer.
After accepting a counter-offer, you may think that things will return to how they were before, or better. You would be wrong.
After you announce a resignation, you will never be seen in the same way. Your loyalty will always be questioned. From that day forward, you will be seen as a risk. Not only will your boss view you differently, and not only will your job security be threatened, but your relationships with your co-workers will be affected as well. They may resent how you got your raise, and assume that it was all gamesmanship on your part. Trust issues and resentments are slow to fade. You may find yourself on the fringes. How’s that growth track looking now?
6. You’ll be burning bridges with other company.
You’ve already accepted their offer. Did you shake hands with your interviewer? You just gave your word. Don’t burn bridges with that new firm. What if you are out looking again in a few years? (Which is very likely – see the next point.) The firm whose offer you accepted and then spurned will not remember you kindly.
7. If you’re not laid off, you’ll probably end up quitting – again.
Statistics show that 90% of those who accept a counteroffer end up leaving, voluntarily or involuntarily, within one year. Four out of five employees who accept counteroffers end up leaving the company within nine months. The odds are not in your favor.
8. The extra money your boss is offering you is coming out of your own pocket.
So, your boss suddenly found the money in the budget for your raise after all? Where do you think that money came from? Open your eyes. The extra money is probably coming from your next raise, the one you were overdue for anyway. You’re only getting a few extra months at the new pay grade. What’s more, it will make it that much tougher to negotiate for your annual raise next year, or even the year after that.
9. Go with your gut, and trust your first instincts.
You were unhappy. You found something better. It’s time to move on.
Be ready for that counter-offer, and be prepared to say, “No, thank you.”
If you’re prepared for that counter-offer, and you recognize it for what it is – self-protection on the part of your boss – you can react with your own best interests in mind.
Be polite but firm, and turn down the counter-offer. Thank your boss. You can let him know that you are flattered, but that you have already committed to the new job. Make sure that you leave in a professional manner. Get your current tasks up to date. Make notes for your replacement. Do whatever you can think of to help the transition go smoothly.