Imagine this scenario: you've decided to take a new job at a different company, and as you hand your resignation letter to your current boss, they surprise you with a counteroffer, proposing a higher salary if you stay.

Even if you believe this situation might never arise, it's wise to prepare in advance. The best response is always: "No, thank you." You might wonder why we advise against accepting a counteroffer. Here's the rationale:

If you have considered leaving your current position, you would have already analysed why you want to change jobs. During this analysis, you would have identified and worked to resolve issues within your or your manager's control.

 

For instance:

• If you felt underpaid, you would have already requested a raise.

• If you were bored and sought more challenging work, you would have discussed your career aspirations with your manager and asked for assignments that would broaden your experience.

• If a long commute was affecting your quality of life, you would have negotiated flexible working arrangements, such as working from home.

 

Having made every effort to address these issues, what remains are the deal-breakers—the fundamental reasons that led you to seek a new job aligned with your career goals.

No matter how financially attractive, a counteroffer does not address the core reasons for your initial decision to leave. Therefore, staying in your current job solely for a higher salary is unlikely to resolve the underlying issues that prompted your job search in the first place.

If you've previously been unable to secure a raise despite presenting evidence that you were underpaid, ask yourself: "Why is my manager offering me a raise now that I'm resigning?" If your value wasn't recognised before, why the sudden change? It's likely not because you've become more valuable overnight. Instead, it's because your manager wants to avoid the disruption your departure would cause

To emphasise: it is not about your increased value as an employee; it's about your manager wanting to avoid the inconvenience of your leaving.

Furthermore, accepting a counteroffer can cause further issues in your role at a company and your future career.

 

Over-compensation

Salary increase: Accepting a substantial salary increase in your current position may result in you being overpaid compared to the market rate for your level of experience. This could price you out of future opportunities and hinder your career growth.

 

Lack of Trust and Loyalty

Trust Issues: Employers may question your loyalty and commitment, potentially viewing you as a flight risk.

Future Promotions: Your future opportunities for advancement might be limited because your commitment is now seen as questionable.

 

Underlying Issues Remain Unresolved

Root Causes: The primary reasons for your initial resignation (e.g., company culture, management style, workload) often remain unchanged.

Temporary Fix: The counteroffer may address only the immediate financial aspects but not the deeper issues that led you to consider leaving.

 

Career Growth and Stability

Stalled Career Progress: Staying in the same role might hinder your long-term career growth and prevent you from gaining new experiences and skills.

Job Stability: Statistics indicate that most people who accept counteroffers end up leaving the company within six months to a year, suggesting the counteroffer is only a temporary solution.

 

Industry Perception

Reputation Risk: Accepting a counteroffer can damage your reputation within your industry, as it may suggest a lack of decisiveness or professional commitment.

 

Stay firm in your decision to change jobs. You carefully identified your reasons for leaving and addressed the issues within your control. The unfixable issues—your deal-breakers—prompted your job search, leading you to a role that better aligns with your career goals.

Don't let flattery or the allure of more money cloud your judgment. You've done your homework and can be confident in the thorough process you followed to seek a new job.

If you second-guess your decision and consider the counteroffer, ask yourself what would genuinely change if you stayed, apart from the higher salary.

 

Don’t show your hand until you have fully decided, and nothing offered will compensate for your rationale to move. If there is ANYTHING they can do to keep you, cover this first! It’s tantamount to career suicide to hand in your notice and then change your mind.