Beware of the Counter Offer!

MonkerzMonkerz Member Posts: 842
Found this to be a great read, thought I would share:


You've been approached by another company, and offered a position that should allow a good career growth opportunity, and a moderate increase in compensation. You've analyzed, if not agonized over, the decision to leave a good (or bad) job for what could be a better one, and have accepted, or decided to accept, the new position. However, upon tendering your resignation, your current boss asks you to stay. This appeal is known as a counter-offer, or buy back.

In recent years, it seems to be the norm, and almost the expected course of action. "It's almost like a part of the accepted divorce proceedings, and allows the boss to save face with his boss," explained one departing executive. "And it sometimes has to take its course."

But take care not to fall into the trap, or be blind-sided to your own detriment. You should understand what's about to be cast upon you.

Counter-offers are typically made in conjunction with some form of flattery.
-You're too valuable, and we need you.

-You can't desert the team/your friends and leave them hanging (guilt trip).
-We were just about to promote/raise you, and it was confidential 'till now!
-What did they offer, why were you leaving, and what do you need to stay?
-Why would you want to work for that company?
-The President wants to meet with you before you make your final decision.

Counters usually take the form of:
1. More money
2. Promotion/more responsibility
3. Modified reporting structure
4. Promises of above or future considerations
5. Disparaging remarks about the new company or job, and/or
6. Guilt trips

These tempting gestures inevitably create confusion and buyer's remorse. Career changes are tough enough as it is....leaving a comfortable job, friends, location, etc. for an unknown and challenging opportunity in which one must reprove oneself. These anxieties frequently cloud the best of logic. But just because the new position is a little scary, does not mean it's not a positive move. It is just usually more comfortable to stay.

Of course, we all prefer to think that we are MVP's, and want to believe these manipulative gestures, but beware! Accepting a counter-offer or appeal to stay is the wrong choice to make.


Think about it. If you were worth "X" yesterday, why are they suddenly willing to pay you "X + Y" today, when you were not expecting a raise for some time? Further, reflect on how you felt when someone resigned from your staff.

The reality is that bosses/companies do not like to be fired. Your boss is likely most concerned that she/he may look bad, and that this could jeopardize his/her career. S/he is judged by the ability to retain staff. When a contributor quits, morale suffers. Further, your leaving might jeopardize an important project, cause a greater workload, or foul up a vacation schedule. It's never a good time for someone to quit, and it may prove very time consuming and costly to replace you, especially considering search and relocation expenses. It is much cheaper to keep you even at a slightly higher salary. And, it would be better to fire you later, on the company's time frame.

"We have made counter offers on occasion, if a good person approaches the issue professionally," states a former senior partner of a Big-6 accounting/consulting firm. "But usually it was a stop-gap measure because we couldn't afford a defection at that point in time. We did not count on those people long term, and usually they'd burned bridges two or three levels up, if not with their immediate manager. It definitely put them in a career holding pattern." He went on to recall a long conference between himself, his boss, and two subordinate managers, in which a counter offer/raise to a person two levels down was approved. "Immediately after that meeting, my boss called me, and said, 'We can't afford to lose him now, but our number one priority is to find a replacement, ASAP!' And, we replaced him within a few months."

Another senior executive from a major financial service organization shared the following opinions, "If it's a real 'hitter', I'll try to get him to stay. But to be honest, any additional compensation is 'stealing' from his future earnings, and I'll always question his convictions, knowing he can be bought. Further, I'll wonder if I can really count on him (which equates to limited future opportunities). In other words, the damage is done."

While your employer may truly consider you an asset, and may genuinely care about you personally, you can be sure that your interests are secondary to your boss's career, and your company's profit or survival. In other words, flattering offers and comments are attempts to manipulate you to do something that is in your employer's best interests, and not necessarily yours. It's not about you.

The negative ramifications to accepting a counter-offer are numerous:
-Where did the money or responsibility come from?
-Was it your next raise - just early?
-Will you be limited in the future?
-Will you have to threaten to quit to get your next raise, or might your (cheaper) replacement be sought out ASAP?

One client executive who preferred to remain unnamed, commented that "90% of the time, accepting a counter-offer is the wrong thing to do. And, if the business is so dependent on one person, it's a weak business."

You've demonstrated your unhappiness, or your lack of blind loyalty, and will be perceived as having committed blackmail to gain a raise. You'll not be considered a team player again. Many employers will hold a grudge at the next review period, and you may be at the top of the next Reduction-in-Force "hit list". "Like an adulterous affair that has been discovered, the broken trust is never fully recovered," stated one client that requested anonymity.

Apart from a short-term band-aid treatment, nothing changes with the company. After the dust settles from this upheaval, you'll be in the same old rut. In fact, statistics indicate that more than 80% of those accepting counter-offers leave, or are terminated, within 6-12 months anyway. In our search practice, although counter-offer acceptances are discouraged, 50% of those who did succumb had re-initiated their job search within 90 days. In fact, one candidate called us back in 5 days!

One executive candidate told us "It was exactly like you said it would be...they butter you up, give you more money, but nothing really changes. In fact, they can get worse." He went on to say "My immediate boss was really agitated, since his boss interceded. At raise time he told me that none had been budgeted (since I'd already gotten a raise), and that if I wanted, I could negotiate with the President as before." This gentleman, by the way, left the company within months.

Attempted buy-backs demonstrate disrespect for your well-thought-out decision, and your commitment to the new company. Should your current employer decide to eliminate your position, or skip you for promotion, just try to counter and change their minds. Fat chance! You've analyzed, accepted, and committed to the new company, which has surely made plans and accommodations around you, and is counting on you. Don't sell out, or back out. Stand by your word. Everyone will respect your decision and integrity, and if the previous employer was sincere about your value, they'll likely make a spot for you in the future.

Look at the two opportunities, your old job and the new position, as if you were unemployed. Which holds the most real potential? Probably the new one, or you'd not have accepted it in the first place.

Two things are certain . . .
(1) You can normally expect a counter-offer, and
(2) you should hold a steady course from the beginning, and stick with your decision to move on to a bigger and better future.


R. Gaines Baty is President of R. Gaines Baty Associates, Inc.

Most top executives agree that the days of the gold watch for 30 years of faithful service are gone. In fact, experience at several different companies over a long period of time is considered an asset that brings a variety of experience and perspectives to a new job. Today, changing jobs is a routine part of every growing professional career.

You are probably considering a change because your present position doesn't offer the growth environment you need. Nevertheless, your company has helped you progress professionally, and as a result, you may feel a bit uncomfortable resigning. After all, leaving a job means leaving many managers and coworkers whom you see socially, and who have been instrumental in advancing your career.

What, then, should you expect when you tender your resignation? Undoubtedly, your company will be sorry to lose you. After all, you have contributed to their sales and profits and are probably involved in several projects drawing on your unique talents. If you were in your boss' position, what would you be inclined to do when a valuable employee resigned?

The Counter Offer - It is natural instinct to resist change and avoid disruption, and your present employer will be no exception. If you're doing a good job, he will want to keep you and will attempt to do so with a counter offer. Even though you have accepted a new job elsewhere, he will try to convince you that you have made a mistake.

Counter offers can be made in a variety of ways:
1. We have plans for you that have been scheduled for implementation the first of next month. I guess it's my fault for not telling you.
2. I want to let you in on some confidential information. There is a reorganization developing that will mean a significant promotion for you within six months.
3. We'll match your new offer. This raise was supposed to go into effect the first of next quarter anyway, but because of your fine record, we'll start it on the first of the month.
4. The President and Vice President want to have dinner with you tonight before your final decisions.

The Implications Of A Counter Offer - A counter offer can be very flattering, sometimes causing your emotions to obscure your objective decision to leave your present employer. There is also the natural feeling of "buyer's remorse", that vague apprehension of change that subtly urges you to consider your decision.

When confronted with a counter offer, ask yourself these questions:

1. I made a decision to leave because I felt another environment would better fill my career needs. If I stay, will the situation at my company really improve just because I said I was quitting?
2. If I decide to stay, will my loyalty be suspect and affect my chance for advancement in the future?
3. If my loyalty is in question, will I be an early layoff when business slows down?
4. They are offering me a raise to stay. Is it just my annual review coming early?
5. The raise they offered to keep me is above their guidelines for my job. Does that mean they are buying time until they can find my replacement within their regular salary brackets?
6. In the final analysis, I got this counter offer because I resigned. Will I have to threaten to quit every time I want to advance with my company in the future?

The Professional Approach - As a professional, you must make your career decisions objectively, free of the emotional pressures you are likely to feel later when being urged to reconsider. While well meaning friends, relatives and business associates will offer advice, you must depend primarily upon your own judgment. After all, you are the only one who is in the position to understand all of the implications of a counter offer. Expect your company to be sorry to see you leave and to make some attempt to keep you. At best, their response should be considered flattering, but beset with numerous pitfalls you should not risk. End your relationship with your employer as professionally as you began it. Your new company will be anxious to have you start, so you should do so as soon as possible. One week's notice is often adequate, a maximum of two weeks is always sufficient.

A counter offer is really a belated affirmation of the contribution you have made to your old company. Move ahead to your new job with the goal of making yourself as valuable to your new employer as you were to the old.


Q. Is There a Downside to Accepting a Counter Offer From My Current Company Once Another Has Made Me an Offer?

A. By disclosing that you have received an offer from another company you have identified yourself as disloyal. If times get tough and staff cuts must be made in the future employers have long memories regarding perceived slights and disloyalties. Accepting a counter offer threatens career advancement and tenure with your original company.



TEN REASONS FOR NOT ACCEPTING A COUNTER OFFER

Deciding to change jobs can be a very stressful situation. Embarking on the interview process can bring new dynamics to that stress level. Once you have made a decision to accept a new opportunity and to move ahead, the pressure and stress start to back off. If you allow yourself to be put into a counter offer situation, the pressure and stress rushes back into your life ten-fold, making your business and personal life extremely uncomfortable. All the reasons below are quite valid but with the emotional turbulence job change can bring about, we can often get sidetracked from the real reasons for our desire to change. One should be aware that in today's market, counter offers are quite common and individuals who are serious about making career moves should be prepared to deal with it head on and early on.

1. Your company loyalty will be in question.
2. When there is downsizing, you'll probably be one of the first to go.
3. Companies often have wage guidelines, is this raise coming out of your next pay raise?
4. Do you actually want to work for a company where you have to resign to get what your worth in the marketplace?
5. You should expect your company to be on the lookout for your replacement at a lower salary/rate.
6. Statistics show people usually leave within six months or are let go within a year upon acceptance of a counter offer.
7. Often your relationship with co-workers changes for the worse.
8. Your loyalty will always be in question with your employer.
9. Actually a counter offer is an insult. They believe you can be bought and also be manipulated.
10. If you accept a counter offer, the reason you wanted to leave will either repeat itself or will still exist.
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Comments

  • SteveLordSteveLord Member Posts: 1,717
    Good read as this topic comes up a lot.
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  • forestgiantforestgiant Member Posts: 153
    I vote sticky!

    This article should be *REQUIRED READING* for anyone with a boss (and that's most of us.)

    It would save everyone a lot of time and headache if more people understood that "loyalty" is only temporary in today's workplace.
  • geek4godgeek4god Member Posts: 187
    Good read.. The reality is simple.. NEVER ever take the counter offer.
  • cyberguyprcyberguypr Mod Posts: 6,928 Mod
    Excellent article. I've always been an advocate of not listening to counteroffers. The 10 reasons for not accepting sum it up nicely.
  • the_Grinchthe_Grinch Member Posts: 4,165 ■■■■■■■■■■
    Been through this and the first time I took the raise (though I didn't have another job lined up, only let them know I was looking else where when they asked if I was happy there). The second time (when I had another job lined up) they asked if there was anything they could do to make me stay and I said no. Things exploded there after with an email from the head of sales berating me for leaving after they had done so much for me, but also at the same time asking what it would take to make me stay (I was confused at best). I made the right decision and left for a much better place, more money, and money for school. I do stay in touch with my old boss because I did like him and they still want me to come back, good shot for the ego!
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  • spicy ahispicy ahi Member Posts: 413 ■■□□□□□□□□
    Totally agree with the article. When I think of leaving, I usually have a good amount of time to mull it over and such and usually along with thinking about leaving, I think about friends who I think would be a good fit to replace me. When I make the decision to leave, I then go and call those friends and see if any are interested. If any are, I get their resumes and when I go in to deliver my two weeks and get the inevitable "What can we do?" I give them the resumes I have and tell them I've got a list of recommendations to replace me.

    Most times that takes the bite off of me leaving. I did have one instance where my boss was extremely unhappy and never called my recommendations. He accused me of knowing I was leaving ahead of time and not giving them time to find a replacement. (HUH?) But you can't satisfy everyone every time. :)
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  • SubnetZeroSubnetZero Member Posts: 124
    Sticky ++ :)

    While no trees were harmed in the transmission of this message, several electrons were severely inconvenienced
    :cool:
  • jdancerjdancer Member Posts: 482 ■■■■□□□□□□
    Monkerz wrote: »
    ...A counter offer is really a belated affirmation of the contribution you have made to your old company...

    Tattoo this to your forehead! :)
  • erpadminerpadmin Member Posts: 4,165 ■■■■■■■■■■
    Pretty much what I've been saying about this topic whenever the counter-offer comes up. There is never a good reason to accept a counter offer....NEVER.

    OP, can you provide a link or otherwise cite the the article in your original post? Also, you may want to modify your post to comply with "fair use." Most of us who posts from articles will provide a link and maybe an abstract of the article. Posting the whole thing may be contrary to copyright issues. I'm not a mod, but I know generally an entire article posted on a forum usually a no-no, but a link to it with a small abstract is ok.

    (I'm just sayin'.... :) )
  • ptilsenptilsen Member Posts: 2,835 ■■■■■■■■■■
    Sticky, agreed.

    Although, I have to point out, there is value to the counter-offer in salary negotiation. Ideally you are getting an appropriate salary or wage at your new job and this is unnecessary, but sometimes it comes up. If old job offers you $10K more than new job, it would be unrealistic to not continue negotiating with new job.
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  • buzzkillbuzzkill Member Posts: 95 ■■□□□□□□□□
    I wouldn't accept a counter offer even if it was for a lot more than the new job was offering. It makes you look incredibly weak and your managers will know that you were on the lookout for something else. A very unpleasant situation to be in in my opinion.
  • nethackernethacker Member Posts: 184 ■■■□□□□□□□
    i am also an advocate of not accepting couter offers. Few weeks ago, i was not fulfilled at my old job because of some unreasonable bureaucracies existing in the company. I don't wanna be the one to change the existing policies so i played along.However i wasn't fulfilled because i was not doing what i should have been doing so i was bored. My colleagues really don't like working and they call themselves IT professional!!!! icon_rolleyes.gif . The PM approached me one day and asked if i was enjoying my job or bored, i honestly told her i was bored that i felt like a dummy for not even doing what i am certified to do.I further said I just don't want to come to work just for the pay.She called me the second day alongside my supervisor for a meeting and she was cajoling me into not resigning since i am feeling bored. The moment i heard those statements that sounded like buy-back statements,i knew i have to look for a job fast.a week later,i got an offer and i resigned.she requested an exit interview which i declined because i was not ready to be interrogated or questioned over my decision.Now i am happy as i am learning new stuffs and expanding old stuffs.
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  • TackleTackle Member Posts: 534
    Great read. Will remember this in the future.
  • MonkerzMonkerz Member Posts: 842
    erpadmin wrote: »
    OP, can you provide a link or otherwise cite the the article in your original post?
    Unfortunately, I do not have a link to this article. My recruiter sent the article to me in an email.
  • forestgiantforestgiant Member Posts: 153
    Let's all Google it.

    The article is 18 years old, but every single single word, concept, or idea is still applicable in today's so-called fast moving world.

    I love it.
  • traceyketraceyke Member Posts: 100 ■■□□□□□□□□
    It's amazing how things happen for a reason. For the past month, I've been overly stressed about leaving my current job for a new one. Then, I see this article and I feel a lot better about it. The problem is that I was taking the idea of leaving/resigning way too personal and forgot all about the PROFESSIONAL advantages to moving on. I have an interview tomorrow morning with a better company (that offers SIGNIFICANTLY higher pay) than my current job. If I get it, then I have to make sure that I don't fall for the "guilt trip" that my company will inevitably pour on me.
  • lordylordy Member Posts: 632 ■■■■□□□□□□
    Very good read.

    When you lay out your decision to move on you will be respected as a professional.
    When you stay for a litte bit of extra cash you are just selling your career out.
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  • MentholMooseMentholMoose Member Posts: 1,525 ■■■■■■■■□□
    I've seen people accept counter offers without issue, so I know it's possible. However I don't think I would ever accept one myself.
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  • ValsacarValsacar Member Posts: 336
    Now what about before you accept an offer. I'm sure many of us have had job offers that we weren't looking for, how does that play into the above?D

    Do I go to my company and tell them I had another offer, and see if I can use that (without making any commitment to the new company) to get a raise or some other benefit?
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  • AkaricloudAkaricloud Member Posts: 938
    Valsacar wrote: »
    Now what about before you accept an offer. I'm sure many of us have had job offers that we weren't looking for, how does that play into the above?D

    Do I go to my company and tell them I had another offer, and see if I can use that (without making any commitment to the new company) to get a raise or some other benefit?

    That's a horrible way to ask for a raise. If you think you're worth more then you're being paid then communicate that in a positive way. Threatening to leave for another job isn't going to win you any awards from either company and might leave you jobless.


    After I accepted the offer from my new position I was told by my old employer that they could get me a better offer by the end of the day. I simply told them not to worry about it; to match this offer would mean being extremely overpaid for my current position and still left with no room for advancement.
  • ValsacarValsacar Member Posts: 336
    Maybe I wasn't clear, my thoughts were more along the lines of letting them know someone else is interested in you. It has nothing to do with threatening to leave, it's mearly "Hey, XYZ company gave me an offer, I'm happy here but it is a nice offer." Then, if they are interested in keeping you, discuss what it is that peeked your interest (new position, more responsibility, more pay, etc).
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  • powerfoolpowerfool Member Posts: 1,666 ■■■■■■■■□□
    This has always been my mantra, but I did once accept a counter offer. The reasoning was that I was actually not really sure that I wanted to leave in the first place. The did bump my pay considerably which was a bit of a slap in the face because I had only started there 11 months before and they were playing hardball on the salary negotiations then. Shortly thereafter, my boss was fired. I thought it would be a good opportunity to take a shot at a promotion and it didn't happen. My next raise was low-moderate. Nearly two years after the incident, our department was outsourced... So, I made it further than the average and I was glad for the experiences I gained during that period. I would not accept one again.

    I would be interested in thoughts about companies or managers that have a "open door" policy related to job satisfaction. My current boss wants us to let him know if we aren't pleased and see what he can do before we move on. While I think he is a decent guy, I know how valuable our work is and what pains they have filling vacancies with qualified professionals... I just have to believe it would be a similar situation... "Okay, I bought us some time, but we need to start looking for a replacement." I say play your cards close to your chest, but I would be open to hearing others' thoughts on this matter.
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  • hiddenknight821hiddenknight821 Member Posts: 1,209 ■■■■■■□□□□
    Okay, I know I shouldn't accept a counter-offer if I will be working for an entirely new company. But the article doesn't explain what we should do if we're changing jobs in-house. It's not exactly a promotion I'm suggesting here. It's more of a transfer to another department with new immediate supervisor and colleagues. Let's say I still have the same person three levels up, even though I changed job and department. What should I do if I was given a counter-offer? I'm still showing loyalty to our parent company by not applying elsewhere outside the company.
  • erpadminerpadmin Member Posts: 4,165 ■■■■■■■■■■
    Let's all Google it.

    The article is 18 years old, but every single single word, concept, or idea is still applicable in today's so-called fast moving world.

    I love it.

    Let's not get cute with me, bud....

    I'm just of the school of thought that if someone is going to post something that he didn't write, he should cite it, period.

    Aside from that, I do share the love of the article with you.
  • ZartanasaurusZartanasaurus Member Posts: 2,008 ■■■■■■■■■□
    Agree 100%. I always advise against taking counter offers. It's a shame that companies are so petty that they feel hurt and betrayed by someone taking a better offer somewhere else. The comments about about thinking employees "can be bought" was amusing. It was okay when you bought them from someone else, but it's not okay when they are leaving?
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  • GarudaMinGarudaMin Member Posts: 204
    It's all easy to say 'no' to a counter offer but what if counter offer was: let's say $25K increase, $50k increase, $75k increase or $100k increase? And you know that the company is reputable and that they won't get you to stay and kick you out later.
  • cyberguyprcyberguypr Mod Posts: 6,928 Mod
    RESPAWN!

    Sure! If your immediate goal is exclusively more money then take it. This is a personal decision but objectively speaking statistics are not in your favor. Since no one can see into the future you rely on statistics and trends to make an intelligent decision.
    Just when you thought you’d be able to leave your job, your employer is making an irresistible offer in order to convince you to stay. Doesn’t this counteroffer sound like a coincidence? Maybe you should think about this for a minute.

    If you’re ever given a counteroffer, it’s important you don’t fall for this trick. According to the National Employment Association, 80 percent of employees who decide to accept a counteroffer are no longer with the company six months later. This could be because the employee loses the trust of their employer or becomes an outcast in the company after accepting the counteroffer.

    Matter of truth is most people who want more money, more responsibility, better title etc. have most likely voiced their concerns several times and have been either ignored, told NO, or fell for the "we'll see where we are X months form now" routine.
  • kohr-ahkohr-ah Member Posts: 1,277
    I have seen both sides of this..

    I seen the take the counter and be let go in 6 months.

    I also seen the oh holy h### you are quitting side. The latter of the two he is still there and no let treated any different. He asked for more work and a chance to move up and his boss ignored him. When he put his notice in suddenly people above his boss got wind and moved him to where he wanted to be.

    I always figure if you are to the point of quitting you have your reasons to go. Just go and continue your story.
  • KeroseenKeroseen Member Posts: 24 ■□□□□□□□□□
    Been there... My company resinded the counter offer a weekend after I had accepted it... Fortunately, I hadn't told my future employer yet. What a disaster that would have been if I had.
  • Danielm7Danielm7 Member Posts: 2,310 ■■■■■■■■□□
    Keroseen wrote: »
    Been there... My company resinded the counter offer a weekend after I had accepted it... Fortunately, I hadn't told my future employer yet. What a disaster that would have been if I had.

    Wow, very lucky you didn't turn down the new employer yet. It's really sad to hear a company even tried that, sounds like they were just trying to screw you for leaving.
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