Your search has paid off–you’ve received an exciting new job offer. But when you try to resign from your current job, your employer makes a counter offer. What should you do?
We’ve seen a lot more counter offers in recent months, especially in the finance industry–read on to find out why this is happening and what you need to know.
What is a counter offer?
A counter offer is an attempt by your current employer to stop you leaving. They might offer you more money, better benefits, decreased working hours, more flexibility, or even a promotion.
With talent shortages in almost every industry, and budgets still tight post-Covid, employers are desperate to hold on to staff. Replacing an employee costs, on average, 33% of their annual salary–for a senior exec, it could be over 200%.
This means offering you more money to stay makes sound financial sense. Your employer will be expecting you to leave anyway within the year–most people who accept counter offers do–so it’s a good way of buying time to look for your replacement.
Should you accept a counter offer?
80% of people who accept a counter offer end up leaving within 6 months–90% within 12 months. Reasons include:
1. Things promised never materialise.
2. You may start to regret accepting.
3. If you wanted to leave for reasons other than pay or benefits, the counter offer may not solve the problem.
4. Your employer now knows that you looked elsewhere, their attitude towards you may change and you may be seen as disloyal.
From a recent Sewell Wallis survey, we found that only 18.5% of respondents left their last job for a higher salary - so if your current employer offers you more money, think about the other reasons you are leaving.
In general, unless pay was your only reason for leaving, it’s better to go ahead and take that new job. If you don’t, you’re likely to burn your bridges with your new employer and have to start the job search all over again–probably sooner rather than later. (And if pay was your only reason for leaving–why did you have to resign before they offered you a raise?)
The emotional counter offer: if not for money, should you stay for love?
Some employers may go for your heartstrings and play on your sense of loyalty to persuade you to stay. Rather than making a formal offer, they’ll make you feel valued, hint at better things to come, tell you they plan to promote you as soon as possible, or ask you to stay just until your current project is finished.
While it’s nice to feel needed–and your boss may well be genuinely upset to see you go–you are in fact replaceable. Again, if not, why did you have to resign to find out how irreplaceable you are?
In fact, now that everyone knows you’ve got itchy feet, you’re likely to be first for the chop in the next round of redundancies.
At Sewell Wallis, we’re experts at helping people navigate tricky employment situations like this. Get in touch today for some free, friendly advice, and discover how we can help you grow your career.
