Picture this: you’ve just received a great job offer, and once you resign from your current job, your current employer offers you another great counteroffer. With two tempting offers on the table, how do you choose?
Deciding whether to accept a counteroffer or move on is not a decision that should be taken lightly; it will most-likely have an effect on the future of your career after all.
Understanding Why Employers Counteroffer
It’s best to start by understanding why your employer made a counteroffer in the first place.
Are they concerned about losing you as a valuable member of their team?
Let’s face it, recruiting higher-level employees is expensive. In fact, it can cost up to as much as 213% of a senior-level employee’s salary to recruit a replacement after he or she has left the company. Not to mention, employees with specialized skills can be few and far between, and may take a long time to replace.
Accepting Counteroffers: The Upside
There are pros to accepting a counteroffer from your current employer: you won’t need to navigate your way around working methods and processes of a new company, or insert yourself into a new team of strangers. You already know the ins and outs of your current company, and you’ve been offered more money to do what you’re already doing. Sounds great, right?
Studies show that 80% of employees who accept a counteroffer lose their jobs within six months of accepting. This begs the question: is money enough to overcome the problems that made you want to look for a new job in the first place?
Accepting Counteroffers: The Downside
Its always important to reflect back on why you started looking for a new job in the first place. Only a small percentage of employees resign from their jobs due to money. If you are looking to move elsewhere, is it because you feel underappreciated, restricted or frustrated? And will these feelings really change simply by increasing your salary?
Have you considered how accepting a counteroffer might affect your relationship with your employer? It’s important to remember that your employer now knows that you wanted to leave the company, and that you only stayed because more money was put on the table. This might lead to your employer questioning your loyalty to the company in the future.
Employees who are seen as less loyal, are typically seen as more expendable. Should a time come where the company needs to make some redundancies, you’ll be higher up the list than those employees who are seen as devoted and dependable. Besides, you wanted to leave anyway, right?
There is also of course, opportunity cost to consider. What new, exciting opportunities and career paths would you be passing up by staying where you are comfortable? Could you potentially grow more in a personal and professional capacity by placing yourself in a new environment, with new challenges and possibilities?
Deciding whether or not to accept a counteroffer can be difficult and confusing. Making a list of pros and cons using the above topics as question points can be helpful. It’s often best to find out as much information as possible about your potential new employer by speaking to your recruiter, so you have all the facts you need to make the best choice for your personal and professional growth.