Should I Accept A Counteroffer?

No. And here is why.

Should I accept a counteroffer

In today's dynamic job market, the temptation to accept a counteroffer from your current employer after announcing your resignation can be strong. However, evidence suggests that this decision may not be in your best long-term interest.

After receiving an offer from a new company, keep this in mind:

Recently, we’ve seen a rise in the number of counteroffers offered to candidates as sought-after skills becoming harder to find. As the labor market improves, we expect to see the number and strength of these counteroffers increase.

Should you accept your counteroffer? We believe you should never accept a counteroffer. Here is exactly why.

The majority of candidates who accept a counteroffer (some studies suggest over 90%) either quit their job or are back on the market within a year. Most will leave within the first six months after they’ve accepted a counteroffer.

As you bask in the ego-boosted glow of your counteroffer, we’ll try and explain our reasoning, derived from years of recruitment experience:

Counteroffers can be flattering.

Finally, you’ve grabbed your boss’s attention; after all the years of trying you feel wanted and valued by your employer – at last!

Of course you have. You’re causing them a major headache, and the onus is on them to keep you in place until they hire your replacement.

Here is how the counteroffer benefits them more than you:

Hiring costs are expensive. The cost of a bad hire means those costs spiral. Replacing a departing employee probably isn’t part of their budget plans right now.
Effective hiring takes time. If your company is in the middle of a big project, planning a conference, or is currently submitting a significant bid to a potential new client, your resignation letter is a temporary inconvenience - no more than that. If you’re a key part of those projects, it makes your imminent departure much more inconvenient.
Training a new employee can be as time-consuming as the hiring process itself. Again, enticing you to stay until your boss decides on the next step will be the primary aim.
Losing a team member may not reflect well on your manager.

How long were they going to wait to raise your pay?

If that’s not enough to stop you in your tracks, consider this; if you are worth this higher salary, why were they waiting for you to quit before they shelled out the cash? The new company saw your worth right away and offered you the salary you deserve.

If you forget all of those reasons and decide to stay, remember:

Your employer can no longer trust you. Expect to be side-lined on important projects and excluded from crucial meetings.
The pay raise you just accepted is the last you will see for a while.
You can be bought. Period.
It’s taken you waving a resignation letter for your boss to listen to you. Are you with a company that truly values its employees?
It’s unlikely the issues that caused you to seek an alternative job in the first place will have disappeared.
Your boss will be searching for your replacement immediately.
You’ll be top of the list if your company reduces its headcount in the future.
If you’ve secured your job through a recruiter, it’s unlikely they will consider you for future positions when you find yourself back on the job market. You’re no longer trustworthy.

High Turnover After Accepting Counteroffers

Several studies have examined the outcomes of employees who accept counteroffers from their current employers after resigning. Studies by Korn Ferry Hay Group and the Wall Street Journal recently have found that roughly 30% of employees who accepted counteroffers usually leave the organization within 6 months, with that number only increasing to as much as 80% in 2 years.

These findings suggest that accepting a counteroffer may not lead to long-term retention, as many employees leave their employers within a relatively short timeframe after accepting such offers.

Underlying Issues Remain Unresolved

A counteroffer often addresses surface-level concerns, such as salary, but fails to resolve deeper issues like job satisfaction, company culture, or career progression. Without addressing these root causes, the same dissatisfaction that led you to seek new opportunities is likely to resurface.

Take it from us, accepting the counteroffer is never a good idea but if you receive one in the near future, remember:

Do:

Anticipate a counteroffer and prepare your response.
Be sure to get the offer in writing.
Evaluate it thoroughly – is it more than a simple pay raise? What does it offer for your long-term career prospects?
Check whether or not it includes training.
Recognize that it’s unlikely you’ll receive another pay rise in the foreseeable future.

Don’t:

Be distracted by your ego and the sudden unprecedented attention.
Forget your reasons for looking for another job initially. Those reasons won’t go away.
Accept the offer instantly – take your time to reflect on it.
Believe in the promises made if you’ve heard it all before (and nothing changed then either).
Expect a sudden turnaround in company culture and transparency – it won’t happen.