How to Handle a Counter Offer – A Recruiter’s Guide
So, you’ve found a new job, received an offer from your new employer and handed in your resignation letter. You’re doing a happy dance! Then, it arrives. A counter offer from your current employer. What do you do?
In this article we outline the things you need to think about when considering a counter offer – with expert tips from our consultants to help you navigate through making the right choice for you and your career.
What is a counter offer?
Employers generally want to keep you if they can! A counter offer is when you have stated your intention to leave and your current employer comes back with an offer to entice you to stay.
Usually this is with a pay rise, but it could also be a promotion, new job role or even additional benefits designed to make you re-consider leaving and stay loyal to the company.
What do you need to consider about a counter offer?
- Think about your reasons for leaving
If it’s purely financial reasons that have you heading for the door, then an offer for more money may be the answer for you. Rarely, however, are decisions to move jobs just about the money. Analyse all the reasons you were unhappy enough to begin your job search in the first place. Was it company culture, workplace stress, job satisfaction or something else? It may help to write it all down.
Does the counter offer from your current employer address these reasons? Compare it with the offer from your new employer. Which one best resolves your concerns?
CMA Consultant Danielle-Jade Neil advises: “Counter offers as a general rule don’t tend to solve the issue, as the problems you were leaving for still exist. In my experience, I would say that 80% of candidates who have accepted a counter offer tend to be back on the market within six months for the exact same reason – the only difference is that the amazing job they were offered previously has now gone!”
- Consider your career goals
When making a decision about a counter offer then think about your career goals and where you would like to be in five years’ time. It’s likely you’ve already done this thinking as part of your job search, so you should already have some idea of where you would like to go or how you would like your career to progress.
Think about what you value most. Look at both your offers and see which company and offer best reflects these goals and can most help you on a path to success and happiness.
- Have an open conversation
Have an honest conversation with your employer – this will help you uncover their reasons for their offer and help you ascertain your value to the company. Are they wanting you to stay on just to avoid having to go through a hiring process and train a new hire – or is it that they genuinely understand your value to the company. Why is your employer now offering you what you deserve, only now that you have resigned or used a counter offer as leverage?
Be open with your recruiter too. CMA’s Senior HR Consultant Zoe Martin says: “It’s also important to communicate with your recruiter – they are there to help you and will be happy to talk it through with you.”
If you are having second thoughts about the new role they will be able to offer some important insight into the new employer that may help you when making the right choice for you. Recruiters make a great sounding board for weighing up the pros and cons…
- Make a pros and cons list
Making a pros and cons list for each role is a great way to help you clearly see the positives and negatives of each job, weighing each role separately. You’ll likely find that one company comes up as a clear choice. Things to consider include:
- Career advancement
- Workplace dynamic and culture
- Salary and benefits
- Location
- Work life balance
- Familiarity of the role
Stand your ground
Our final advice? It’s easy to feel swayed by a counter offer, after all it feels great for our ego – but rarely is accepting a counter offer the right choice. By the time a counter offer has been given your employer will know that your loyalty to the company is in question – and this could very possibly hamper your career progression within the company moving forward.
When making your final decision, consider all the reasons you have uncovered and remember how hard you worked in your job search and interviews to win that new offer of employment with a company you respect.
“Remember why you undertook a job search and your reasons for wanting to find a new role – and make sure that the offer you choose addresses the issues that initially prompted your job search” advises CMA Consultant Moya Dunne.
How to decline a counter offer
As with weighing up multiple job offers, it’s perfectly acceptable to ask for time to consider the offer – of course ensuring you communicate this development with your recruiter/new company too.
If you decide to decline your current employer’s offer, then honesty is the best policy. Be polite – it is never good to burn bridges after all, and politely decline your employer’s offer. You can briefly outline your reasons – but as with a resignation letter, leave out the fire and brimstone – instead choose to leave the specifics for leaving to an exit interview.
How to accept a counter offer
Firstly, it’s important to say here that it’s considered bad etiquette to accept an offer from a new employer only to later turn it down. It’s not good form – it shows a willingness to burn bridges and will damage your professional reputation.
Ideally, you’ll have had open conversations with your manager prior to beginning your job hunt – so your new job offer should not be a surprise to them. Approaching your employer once you have received an offer but before handing in your resignation is a good idea, particularly if you have any doubts about leaving or feel that your employer could offer you an enticing counter offer. You should absolutely not accept the offer from the new employer until you have had a conversation with your current employer. As a side note – always make sure you have any offers in writing before tending your resignation.
Before accepting the counter offer, be sure to arrange a meeting with your manager to run through and clarify the terms. If you are being offered a pay rise be sure to clarify when this pay review will start. And remember the advice offered above.
Senior Consultant Lynsey Walsh concludes: “Don’t let it be a case of better the devil you know – make sure when considering a counter offer that you’re looking at all the angles.”