Employers are often quick to entertain a counteroffer to a potentially departing employee because the increased salary costs less in the short term than hiring and training a replacement.
It is generally not advisable to accept a counteroffer because the relationship between the employee and employer has now been altered.
The majority of employees that accept a counteroffer either leave or are terminated within a year. There is almost always a non-financial motivation to the resigning employee that is not cured with a salary increase. A good supervisory relationship and open communication about performance expectations, career advancement opportunities, and compensation can help avoid unnecessary turnover.
Changing jobs can be very emotional. It is important to think through, prior to the offer stage, the possibility of your current employer extending a counteroffer at the point of your resignation. Some factors to consider include the following:
- What type of company do you work for if you have to threaten to resign before they give you what you are worth?
- Where is the money for the counter offer coming from? Is it your next raise early? All companies have strict wage and salary guidelines which must be followed.
- Your company will immediately start looking for a new person at a cheaper price.
- You now have made your employer aware that you are unhappy. From this day on, your loyalty will always be in question.
- When promotion time comes around, your employer will remember who was loyal and who was not.
- When times get rough, your employer will begin the cutback with you.
- The same circumstances that now cause you to consider a change will repeat themselves in the future; even if you accept a counteroffer.
- Statistics show that if you accept a counteroffer, the probability of voluntarily leaving in six months or being let go within one year is extremely high. Ninety-six percent of those who accept counteroffers are gone the next year.
- Accepting a counteroffer is an insult to your intelligence and pride; knowing that you were bought.
- Once the word gets out, the relationship you now enjoy with your co-workers will never be the same. You will lose the personal satisfaction of peer-group acceptance.