Why You Should Never Accept a Counteroffer

A counteroffer is when the present employer waits until an employee is resigning to make on offer of increased wages and/or better working conditions. The obvious issues here are:

  • Why did it take the threat of resignation to prompt these changes?
  • From where is this money coming? If the money is available for a raise now, then why wasn't a raise offered before? Is this next year's increment raise? How will this affect your position in the salary guidelines for the company?

Hiring and training skilled employees is a time consuming and costly process. Many times employers see a counteroffer as the cheaper alternative. However, studies show if the work environment is undesirable before a counteroffer, it will worsen, not improve, if the employer is forced to make concessions to retain services of a seasoned employee. Once an employee has held the proverbial gun to the employer's head to gain what they want, the employer will never forget the "stick up."

  • Loyalty will always be in question.
  • Future promotions will be hindered.
  • Should layoffs occur, you will be on the top of the cutback list.

Statistics show that if you accept a counter offer, the probability of voluntarily leaving in six months or being let go within one year is extremely high. Another consideration is that of co-workers. Now that you have a higher salary to stay, your co-workers may feel they to deserve the same treatment. Relationships may be strained, and your employer will blame you if your co-workers begin petitioning for increased wages due to your counteroffer.

Be aware that other than increasing you salary or working conditions, an employer may try the emotional counteroffer. This counter offer costs the current employer nothing and is calculated to cause the candidate to feel guilty. It usually comes in the form of something like "How can you do this to us after all these years?" We have been such good friends." Employers will invoke memories of social, business and personal encounters over the years. They often will express great personal feelings of loss. Be certain to be wary of such counteroffers and keep in mind the reasons you are leaving the company.