What is a Counter-Offer? Should You Accept It?

Picture this: you’ve handed in your notice, ready for a new work-life adventure. The following day, your employer surprises you with an offer you can’t refuse – a pay rise or promotion. It’s flattering, it’s tempting, but is it the right move?

In this article, we explain to you what exactly is a counter-offer, if you aren’t totally sure what it involves, and we look into the pros and cons of accepting a counter-offer when you want to quit your job and move on. Finally, we help you prepare an action plan if you’re planning on telling your boss about your new job opportunity and you want to face this situation ready to act!

What is a Counter Offer?

A counter-offer is an employer’s tempting proposal to retain an employee on the verge of leaving. Their proposition does two things: it says “no” to the original offer and suggests a new deal. When you counteroffer, the initial offer becomes invalid, and you can’t accept it anymore.

So as a UK employee, if you accept a counter-offer with new terms and conditions, the initial contract you signed may become invalid. When you agree to the new deal, it usually replaces the original terms, and you will be bound by the new terms going forward. It’s important to carefully review and understand the new terms before making a decision.

So while it may sound tempting and make you feel valued, you shouldn’t let your emotions cloud your judgment. The offer is not about you; it’s about the organisation’s bottom line.

Economic Reality

Replacing you is about more than just salary. Rehiring and retraining is a costly process, then there’s advertising and administration fees to boot. Especially in today’s IT and Digital landscape, skills shortages make it hard to replace talented tech professionals. Without them, business progress stagnates, causing financial setbacks.

Behind the Mind Games

After deciding to leave, doubt can creep in – a psychological phenomenon known as cognitive dissonance. It’s overwhelming, coupled with the anxiety of a new job. The allure of staying seems strong, but think twice.

Let’s Look at the Pros and Cons

Before you accept or reject, let’s break down the pros and cons of accepting a counter-offer. Employers might urge you to stay, but try not to let it go to your head. Making a hasty decision about staying in your current role now could harm your long-term future.

Your Reason for Leaving

Reconsider why you wanted to leave. If your reason persists – like a stressful commute – money won’t solve it. An increased salary won’t help you magically escape traffic unless relocating is part of the deal.

Trust Issues

Accepting a counter offer might make your employer question your loyalty. Although the company made you the proposal, management might hesitate to invest in your growth if they doubt your commitment.

Office Dynamics

The news that you’re staying because of a raise might spread like wildfire. Colleagues might resent you and doubt your trustworthiness, affecting office dynamics.

Follow the Money

If your organisation had the money for a raise, why only agree to pay you what you’re worth now? Question where the sudden generosity comes from and the motive behind it.

The Mirage

Beware of a new job title – is it a genuine promotion or a smokescreen for delay? Don’t make yourself expendable.

Your Reputation Matters

Any recruiters involved in the process no doubt worked hard to help you get your new position. Backing out of the deal could tarnish your professional reputation with them. The repercussions might affect your career later down the line.

The Stats Don’t Lie

Consider this: 50% of leavers get tempting counter-offers, but only 50% stay past a year. Senior executives know it damages careers, but that’s not their concern.

Are There Any Real Pros, Other than a Salary Increase?

Simply said, there aren’t any fundamental plus points to accepting this proposal from your existing employer. Sure, you get to stay in your comfort zone for a while. We all like a salary increase or a promotion.

However, how comfortable would that feel given the above now, when they didn’t give you a salary rise or that promotion you desperately wanted until they saw you going?

Navigating Counter-Offers: Your Action Plan

Are you ready to conquer that counter-offer conundrum? Check out these steps for a clear path to the route that’s right for you:

1.- Be Prepared

Almost all employers will try to persuade employees to stay upon handing in their notice. Preparing to have this conversation will help you approach it with a clear head. Of course, you don’t know until you get there what their offer will be. Once you know what it is, at least you can ask for time to think.

2.- Make a List

Get practical. Jot down what each opportunity brings. Sometimes, what’s a pro in one might be a con in the other.

3.- Take Your Time

This is a life-altering choice. Ask for time to think to give yourself a breather. Scrutinize every angle, ponder your future, debate the pros and cons, and make an informed move.

4.- Chat with Your Line Manager

Ask for an open discussion with your boss about your potential within the company. Gauge your true value and whether the counter-offer reflects it or is just a quick fix.

It’s Natural to Feel Tempted to Accept a Counter-Offer… But Is it the Right Call?

Before you jump at the temptation of accepting a counter-offer from your manager, it’s crucial to look beyond the immediate benefits and carefully weigh the long-term implications. Remember, a counter-offer rarely addresses the core reasons you decided to leave in the first place. Your future career and happiness deserve more than a quick fix.

Working with a trusted recruitment consultancy can make all the difference if you’re considering a move and need guidance. We’ll help you navigate these challenging situations with clarity and confidence, ensuring you make the decision that’s truly right for you.

Ready to take the next step in your career? Whether you’re looking for a fresh opportunity or advice on handling counter-offers, get in touch with our team today. Let’s work together to help you build the career you deserve.