Why Employers Make Counter Offers and the Downside of Accepting a Counter-offer
It’s not uncommon for employed professionals to casually look for job opportunities in the market. Some may want to evaluate their market value and learn whether they’re being compensated fairly, others are looking for roles that may be a better fit.
In the process of looking and applying for a job, you may end up with an offer – one that’s compelling enough to make you leave your current job. When your heart is set on the new job, and you’re all set to hand in your resignation letter, chances are, you may end up getting a counteroffer.
Now, you’re not that sure about leaving your current job. Should you accept the counteroffer or call it quits to make the bold career move you planned to do?
The answer isn’t all that straightforward, which is why more than 50% of employees end up accepting the counter-offers. However, before you make the decision that could potentially make or break your career, it’s essential to understand why your employer is making a counteroffer in the first place.
Why Do Employers Make Counter Offers?
In today’s competitive job market, employers are always looking for ways to retain high-quality workers. As a result, your employer may present you with a counteroffer to make you stay. Though most counter-offers propose an increased salary, it can include other aspects as well –
- Additional company benefits
- Change in role
- Additional job flexibility
- Added responsibilities
- Involvement in projects of interest
- Promises for the future
While your employers may value your contributions to the company, a counteroffer may not always have to do with your perceived value. Apart from the salary and benefits, the cost of advertising your job, filling out the vacancy, and training the new hire will be quite expensive for the company.
On top of that, many digital and IT jobs can be extremely difficult to fill because of skill shortages in the industry. Such vacancies can sometimes stay open for several months or even years, leaving a massive dent in the company’s finances.
Though counter-offers are meant to make you feel special, sometimes they are purely a logical decision from a cost-saving perspective.
There could be other reasons why your employer wants you to stay. Let’s take a detailed look at them –
- To maintain optimal staff morale and relationships
- To avoid an increase in the workload for others in the team
- To keep the employee until the completion of a time-sensitive project
- To buy time until they find a suitable replacement
Why Shouldn’t You Accept Counter Offers?
More than 50% of employees tend to accept counter-offers because it seems like the right move when you already have existing relationships with colleagues, and you won’t have to figure out the working methods of a new company from scratch. The added perks don’t sound bad, and they may all make you want to stay.
However, you’d be surprised to find out that around 80% of employees who accept counter-offers leave the organization within six months, and about 90% within a year. The shocking numbers indicate that money and added perks may not be enough to deal with the reasons that made you want to leave the company in the first place.
At TASC Outsourcing, we have seen many accepted counter-offers backfire, causing an immense setback to the careers and reputations of employees. If you’re ever in the dilemma of not knowing whether to accept or reject a counter-offer, we have a few reasons to suggest why you shouldn’t accept one –
It Won’t Change Your Current Situation
While your counter-offer may come with extra money in your salary, it won’t change the other reasons that made you want to leave. Whether it’s the toxic work culture, lack of flexible hours, or reduced career advancement opportunities, more money won’t be able to fix these problems.
It Means You Weren’t Being Paid Enough
It’s nice to get a raise, but when it comes with a counter-offer, you know that you were going underpaid. If your boss was able to find money to pay you now, it means they could have done it sooner too.
It Might Halt Your Pay Raise in the Future
When your counter-offer suggests a raise, it might mean that your employer is fast-tracking a raise that you were due. In that case, you may not see another raise in the foreseeable future.
It Can Make Your Employers Lose Trust in You
Despite sharing a good relationship with your boss, resigning could put a heavy dent in the trust you’ve worked so hard to build. Your employer might be concerned that you aren’t happy and can necessarily be ‘bought.’ They might start looking at you differently and question your loyalty. Apart from making you uncomfortable at work, your contributions may go unnoticed and unappreciated.
It May Stop You From Advancing Your Career
One of the reasons employees leave their current job is because of reduced career advancement opportunities. In that case, a counteroffer won’t change anything. Now that your employer knows you are ready to leave, they might be less inclined to invest in your career. They may end up giving promotions to colleagues who have remained loyal to the employer.
It isn’t easy to decide whether to accept or reject counter-offers, especially the ones that are compelling. However, it’s essential to acknowledge that money cannot solve every problem. Find out why you want to leave the company and what can the new job offer provide you that your current job cannot.
If you’re having trouble making the decision, talk to your expert recruiters to get all the facts straight so that you can make an informed decision that facilitates your professional and personal growth.