What Is A Counter Offer?

A counter offer is an employer’s effort to retain their employee after they have handed in a resignation letter. A counter offer will usually promise an increase in salary and is designed to make you reconsider leaving the business.

There are many reasons an employer will make a counter offer, and often it has little to do with you as an individual. The most common reasons a business will try to retain a member of staff are:

To keep the employee’s knowledge in-house.
To reduce the costs of employing and training a replacement.
To avoid adding to the rest of the team’s workload.
To keep employee morale high by reducing turnover.

Should You Accept A Counter Offer From Your Current Employer?

While some people will tell you to reject a counter offer, no matter the circumstances, we know that it isn’t always an easy choice. No two people are the same and what is right for one person isn’t necessarily right for another. In general, we advise our candidates to think very carefully about any counter offer from a current employer for a few reasons, not least of all being that research shows 90% of employees will leave their role within 12 months of accepting a counter offer.

Following Your Gut Is Usually The Right Move

At some point in the past, you decided that your current employer isn’t right for you. You updated your CV, reached out to a recruitment agency and put yourself on the line for interviews and assessments. You wouldn’t have made that decision without good reason. Whether it was because of lack of opportunity to progress, poor management or office politics, your gut instinct was to leave your current role, don’t backtrack on that decision without giving it serious consideration.

Your Value Hasn’t Changed

Generally, counter offers come with a pay rise, but be wary of this sudden change of heart from your employer. You are just as valuable as you were a year ago (if not more), yet it’s only being recognised now that you’ve handed in your resignation. A good employer is willing to pay their employees a fair wage without waiting until a competitor offers to do it first.

Money isn’t everything!!

Even if your employer is offering you such a significant pay rise that it’s too good to ignore, it’s important to remember that money isn’t everything. Once the initial benefit of a higher wage becomes your new normal, will you still be unhappy in your role? A toxic work environment or bad work-life balance will never be balanced out by money.

Always speak to your recruiter if you’ve been offered a counter-offer. We can give you our professional opinion on the situation and help you make the right decision. As well as wanting the best for you, we also want to make sure our candidates are the right long-term choice for our clients.

How to handle a counter offer without burning bridges

When turning down a job counteroffer, keep in mind that your business may have expended considerable effort and time in retaining you as an employee. Begin your reply with genuine gratitude and thank your employer.

When you’re focused on being polite and complimentary, it’s easy to waffle, leaving it unclear whether you’re accepting or rejecting the offer. Keep it clear, concise and direct.

Don’t be afraid to give an honest reason you’re declining the counter offer. While you should keep your reply professional, there is no harm in explaining “Although your offer of a 5% pay rise was generous, Business X gives me the opportunity for progression that I want to prioritise at this point in my career, so I will be accepting their job offer.”

Close your rejection letter by telling your employer a few of the things you enjoyed at the company and end on a positive note. With the rise of platforms like LinkedIn, you never know where your network will lead you in the future.

There we have it. You’re now ready to begin your next adventure with your new employer while keeping your bridges and networks intact. On to the next chapter!