Since the onset of the Covid pandemic, many individuals have been reevaluating their employment situation, and many have chosen to seek new opportunities. The question is though, what happens when a person decides to resign and their employer makes them a counter offer? Should the counter offer be considered or not?
The first question one needs to ask is: What is the reason for wanting to leave in the first place?
If it is solely based on the salary then maybe a counter offer would solve the problem, but often the reasons for leaving are more complex, and a counter offer will not resolve those issues.
Let’s explore our top reasons why employees should not accept a counter offer:
1. Only the Salary Improves
A counter offer only solves the problem of salary. Any underlying issues in the workplace, which
motivated the individual to seek alternative employment remain. This means things will not
really change considerably.
2. A Future Employer Sees Potential
Moving to a new employer is a huge risk, both for the employee and the employer. A new job
offer shows that the new employer is willing to take that risk, and so the employee should also
take a leap of faith. A new employer will be ready to train and groom a new recruit while their
current employer is perhaps not investing as much in their growth.
3. Staying Within One’s Comfort Zone is a Bad Idea
The saying goes that familiarity breeds contempt. Though the current employer may be safe,
there are also many things that have driven the employee to seek a new job, so they should
stick to their guns. If the current job does not bring job satisfaction, almost no amount of
increase can solve that problem. Change means growth, and everyone should be striving to
evolve.
4. Has the Employer Been Paying What the Employee is Worth?
When the threat of an employee leaving leads an employer to make a counter-offer, the
question arises of whether or not the employee was being fairly remunerated in the first place.
From where did the money suddenly materialize to retain the employee? This might suggest
that an employer has been consciously underpaying an employee, meaning the employee’s
talent and hard work are not valued and appreciated.
5. What of Future Bonuses, Promotions, and Pay Rises?
One of the challenges with accepting a counter offer is that it may impact on future bonuses,
promotions and pay rises. An employer may very well have budgeted to provide these at a later
stage, and simply decide to push the plan forward in order to retain the employee.
When the time comes for the employer to revise bonuses, promotions and pay rises for all
employees, the one who accepted a counter-offer may find themselves unknowingly short
changed. This will ultimately lead to the same disgruntlement that led the employee to search
for a new job in the first place.
6. Trust May Be Broken
Resigning can often be construed as a lack of loyalty. If a new offer comes along and the
employee is seen to be willing to “jump ship” then the trust between the employee and the
employer can be irreversibly damaged. If the employee accepts the counter-offer, the employer
may not feel that the employee is totally committed and this may stifle future growth when the
employer is looking towards someone “who can be counted on.”
7. Should an Employee Allow Themselves To Be “Bought”?
The relationship between employee and employer can be severely damaged if a counter-offer is
accepted. The employee may come out of it feeling like they have been bought instead of being
rewarded for their hard work, and the employer may feel that the employee has limited
convictions. At the end of the day this can lead an employee to feel like the company is no
longer the right fit for them.
8. Counter-Offers Usually Don’t Last
As committed as the employee may be to doing the best possible job, the employer and
colleagues may start to treat the employee differently. This may be conscious or unconscious
because now they feel that the employee has shown a lack of loyalty to them. Eventually, this
will drive the employee to resume their job search.
9. Is the Employer Just Stalling for Time?
Sometimes, an employer will make a counter-offer while they seek a replacement who may
indeed accept a lower offer. This means that a counter-offer may still not ensure job security.
A Final Thought
Overall, there is much to think about when considering a counter offer. Though it may seem like
the employer is now keen to retain the employee, this may not be the best option for both
parties involved. Think clearly and cleverly on the repercussions of how you deal with the
situation, and make the choice that’s right for you.