Candidate News and Information

Counteroffers

Recently, we've seen some SERIOUS counteroffer activity, and feel obligated to share with you some comments on the subject from outside sources.

ComputerWorld Magazine: "Don't Be Fooled by the Counteroffer"

Question: I have had an offer from a competitor that has the exact same hardware and software as my current firm. The position is almost the same as my current position, but it's a 7% raise, and my commute would be five miles less. My boss said that he would give me a $10,000 raise if I stay. What should I do?

Answer: Never, ever, ever take a counteroffer. Any time you catch your company off guard, you are setting yourself up for the counterpunch. They may act as though all is forgiven, but they'll never forget. They have projected the $10,000 divided by 26 pay periods, but your company is likely planning on replacing you as soon as it can, so it is figuring on a payout of three to five pay cycles at most. A 7% raise in this economy, on the other hand, is a gift -- grab it!

"Counteroffer Acceptance -- Road to Career Ruin (A Raise Won't Permanently Cushion Thorns in the Nest)" by Paul Hawkinson (reprinted from The National Business Employment Weekly)

Matthew Henry, the 17th century writer, said, "Many a dangerous temptation comes to us in fine gay colors that are but skin deep." The same can be said for counteroffers, those magnetic enticements designed to lure you back into the nest after you've decided it's time to fly away.

The litany of horror stories I have come across in my years as an executive recruiter, consultant and publisher, provides a litmus test that clearly indicates counteroffers should never be accepted... EVER!

I define a counteroffer simply as an inducement from your current employer to get you to stay after you've announced your intention to take another job. We're not talking about those instances when you receive an offer but don't tell your boss. Nor are we discussing offers that you never intended to take, yet tell your employer about anyway as a 'they-want-me-but-I'm-staying-with-you' ploy.

These are merely astute positioning tactics you may choose to use to reinforce your worth by letting your boss know you have other options. Mention of a true counteroffer, however, carries an actual threat to quit.

Interviews with employers who make counteroffers, and employees who accept them, have shown that as tempting as they may be, acceptance may cause career suicide. During the past 20 years, I have seen only isolated incidents in which an accepted counteroffer has benefited the employee. Consider the problem in its proper perspective.

What really goes through a boss's mind when someone quits?

"This couldn't be happening at a worse time."
"This is one of my best people. If I let him quit now, it'll wreak havoc on the morale of the department."
"I've already got one opening in my department. I don't need another right now."
"This will probably screw up the entire vacation schedule."
"I'm working as hard as I can, and I don't need to do his work, too."
"If I lose another good employee, the company might decide to 'lose' me too."
"My review is coming up and this will make me look bad."
"Maybe I can keep him on until I find a suitable replacement."

What will the boss say to keep you in the nest? Some of these comments are common.

"I'm really shocked. I thought you were as happy with us as we are with you. Let's discuss it before you make your final decision."
"Aw gee, I've been meaning to tell you about the great plans we have for you, but it's been confidential until now."
"The V.P. has you in mind for some exciting and expanding responsibilities."
"Your raise was scheduled to go into effect next quarter, but we'll make it effective immediately."
"You're going to work for who?"

Let's face it. When someone quits, it's a direct reflection on the boss. Unless you're really incompetent or a destructive thorn in his side, the boss might look bad by 'allowing' you to go. His gut reaction is to do what has to be done to keep you from leaving until he's ready. That's human nature.

Unfortunately, it's also human nature to want to stay unless your work life is abject misery. Career change like all ventures into the unknown, is tough. That's why bosses know they can usually keep you around by pressing the right buttons.

Before you succumb to a tempting counteroffer, consider these universal truths:

Any situation in which an employee is forced to get an outside offer before the present employer will suggest a raise, promotion or better working conditions, is suspect.
No matter what the company says when making its counteroffer, you will always be considered a fidelity risk. Having once demonstrated your lack of loyalty (for whatever reason), you will lose your status as a "team player" and your place in the inner circle.
Your reasons for wanting to leave still exist. Conditions are just made a bit more tolerable in the short term because of the raise, promotion or promises made to keep you.
Counteroffers are only made in response to a threat to quit. Will you have to solicit an offer and threaten to quit every time you deserve better working conditions?
Decent and well-managed companies don't make counteroffers... EVER! Their policies are fair and equitable. They will not be subjected to "counteroffer coercion" or what they perceive as blackmail.

If the urge to accept a counteroffers hits you, keep on cleaning out your desk as you count your blessings.

"Counteroffer Won't Make Bad Job Worth Keeping" by Niki Scott (Universal Press Syndicate)

It's everybody's dream, and it's happening to you! You went looking for another job, and you got an offer -- a good offer.

So, you marched into your boss's office, determined to be Courteous and Professional and not tell her how underpaid and under appreciated you've been all these years. And what did your boss do? She matched the offer and asked YOU to reconsider.

You are in demand! They're competing for you! You're amazed. You're grateful. You're also likely to accept your boss's offer -- only to regret it.

Tempting Bait. It's tempting to accept a counter-offer. YOU can avoid the emotional upheaval of leaving; you don't have to say good-bye to familiar faces and comfortable surroundings. You don't have to cope with new job anxieties, either. No first-day panic. No feeling like the new kid on the block. No risk of hating your new boss, or being in over your head, or regretting that you thought of leaving. Just knowing that you're worth a counteroffer can make you appreciate your old job, as well. But eight out of 10 people who accept a counteroffer will leave the company within six months anyway. Second honeymoons don't fix bad marriages; they just postpone divorces.

We almost always have other things on our minds besides money when we consider a new job.

We want a more (or less) flexible schedule, more (or fewer) hours of work each week, more (or less) contact with people, more (or fewer) chances to be creative, more (or less) time to ourselves. We want a different boss, or different co-workers, or different challenges.

Self-Evaluation. If you try to quit your job and are offered more money to stay, note why you wanted another job in the first place. Were you bored? Understimulated? Unchallenged? Unappreciated? Were you unhappy with your hours or the people with whom you worked? Did you feel stuck? Was your boss a toad? Was your workload too heavy? Were your hours too long? Or were you just ready to move on and up? You had good reasons for leaving; some of them had nothing to do with money.

You can't allow yourself to be wooed, solely by a short-term salary increase. You're a professional. You have a future to consider.

Our Comments

Most candidates that we work with are NOT solely seeking a salary increase, but are focused more on opportunity, involvement in decision making, direction of the company or team, etc. In fact, studies show that salary is #4 on the list of the most important aspects of a person's position.

Our experience has been that those who DO take a counteroffer are in contact with us again within 6-12 months, again seeking to make a change... and that the company that was once interested in hiring them, has totally lost interest. Seriously considering a counteroffer is a mistake. It would be better for you and for all others concerned to approach your boss in advance of making the decision to leave your current employer, to determine if adjustments can be made to your current situation, that would make you WANT to stay where you are now.

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