Why You Should Not Accept a Counter Offer From Your Current Employer

With the strong demand for top accounting and finance talent in Connecticut in 2014, a number of our candidates received counter offers when they resigned from their current accounting firm or company.  Some studies suggest that approximately 90% of candidates who accept a counter offer end up leaving the company in the next 6-12 months.  While the lure of a higher salary or attractive promises might seem enticing, there are a number of reasons why you should politely say “no thanks” if you receive a counter offer.  Here are a few of them:

1) If you weren’t valuable enough to receive a higher salary or promotion prior to resigning from the company, why is the company willing to give it to you now?  The reason is because the company doesn’t want to deal with the short-term disruption of you leaving, such as finding someone internally to assume your responsibilities while they search for a new employee.  If you decide to remain with the company, be assured that this higher salary will be factored into your next salary adjustment, likely resulting in only a short-term increase in compensation for you.

2) Besides salary, there were likely other reasons that caused you to explore other opportunities.  It might have been limited career growth opportunities within the company, lack of appreciation for your contributions, a poor work/life balance, dislike of your boss, boredom with the work, etc.  If the company suddenly proposes solutions to these issues, you should ask yourself, “why did it take me telling them that I’m leaving to offer these remedies and will things really change in the long run?” The likelihood is that the issues that were bothering you won’t change for the better and you’ll be back in the market for another opportunity in the near term.

3) If you do decide to accept a counter offer, you will no longer be trusted by your employer.  The next time you have a doctor’s appointment or take a sick day, they will likely wonder if you are out interviewing for another position.  If the company decides to reduce their headcount in the future, you might be on the top of the list, as you were going to leave on your own.

In summary, don’t let the flattery of being offered more money or suddenly feeling more valued cause you to accept a counter offer after you have given your resignation.  You needed to have one foot out the door in order to receive a higher salary, promotion or promises of an improved situation.  You did your homework on the new company when you decided to accept their offer.  Trust your instincts and simply say “no thanks” to a counter offer.