Here’s our thoughts on whether you should accept a counter offer.
The counter offer bubble makes you feel wanted, valued, and listened too. You will often have some emotional attachments; it is familiar, you have formed relationships. Despite all your attachments, you must remember why you are considering a move in the first place.
In most cases, accepting a counter offer will only provide short-term satisfaction, papering over the cracks! Statistically, between 60-80% of people who accept a counter offer are back on the market within 6 months!
It may be one of these reasons, or all of them, but whatever the reason you are looking for a new job, your first port of call should be an open conversation with your manager. Before committing to the job search, you need to know if what you want is attainable in your current role.
On occasion, taking a counter offer, may be the right thing to do. However, there are several overwhelming reasons why you shouldn’t take a counter offer, this article highlights some of those situations.
You may be surprised by this figure, but take into consideration the cost of; advertising, time taken to interview, agency fees, training, and likely a higher salary to attract new talent.
For a £50,000 salary, it is likely to cost the business around £25,000 to replace that role; how does a 2-5% counter offer feel now? The harsh reality is it costs your employer a lot less to give you a raise than it does to replace you!
The average replacement cost of an employee is 45- 50% of their annual salary.
One of the first things you should consider when receiving a counter offer is the commitment to promises made by your employer. Are they going to provide you with an updated contract or a revised job description to back up that promised promotion/pay rise? It is also worth considering whether that counter offer pay rise, is just an early pay rise and therefore hinder any chances of future salary reviews?
Are you truly valued? Call in to question the drastic measure you have had to make to feel heard and valued. Is this counter offer bubble going to burst as soon as you accept and are back in the same position within 6 months? In addition, were they already aware that they were paying you under market value?
Once you have got to the point of handing your notice in with a new job to go to, it is inevitable that your loyalty, trust and long-term potential within the business will be questioned. Knowing that you have a question mark over the business and your future with the company, you may be seen as a ‘flight risk’ and it could lead you to being overlooked for long term projects or further promotions. Furthermore, if redundancies take place and the above factors are considered, you may be high up on the list.
By choosing to stay, what value will you be adding to your experience and skillset? Even with a promotion or increased responsibility, many of your challenges and your knowledge may remain the same. Pushing yourself outside of your comfort zone will likely lead to progression, new challenges, new skill sets and new mentors!
So, in the immediate you have managed to get everything you had been wanting from you current employer, a pay rise/promotion/flexible working etc, but is this only a short-term solution. Is there a long-term opportunity beyond this? What happens in 12–18 months’ time when you have outgrown your “new” role? Do they have a forward plan for you?
At this point in your job search, you have an exciting new employer who has recognised the value you can add to their business and has demonstrated their desire to secure you.
As mentioned earlier, sometimes the counter offer may be the right thing for you! If this is the case, that’s great, but make sure you get everything in writing and the relevant changes are made to your contract.
Lastly, it is ok to be confused and unsure. Moving jobs is one of the biggest choices you will make during your life, and it should not be made lightly. Take a step back, weigh up your options and think about your short term, medium term and long-term goals and objectives. Consider why you were looking to move in the first place and strip it back to two simple questions.
If you do need some advice on your career move, counter offers or anything else Absolute recruit is here to help, feel free to reach out.
Until next time,