Navigating a Counter Offer When Leaving a Job

Imagine this: you're ready to leave your job, you've handed in your resignation, and then your employer makes a counter offer. It's an enticing proposition, but what should you do?

The Perils of Accepting a Counter Offer

Most experts advise against accepting counter offers. A counter-offer may seem like an immediate solution to issues that led you to consider leaving, like better culture, work/life balance, or an increased salary. But once the excitement new title and bump in salary wears off, 90% of people who accept a counter-offer leave within 12 months.

The Power of Constructive Conversations

Before you reach the point where you're ready to leave, it's crucial to have constructive conversations with your boss about your salary and growth expectations. This can help avoid misunderstandings and give your employer a chance to address your concerns.

Emotional Leverage and Financial Motivations

Companies often use emotional leverage and relationships to keep employees from leaving. Though it's easy to feel guilty or obligated when a counter offer is made, remember that businesses often have financial motivations behind these offers.

In fact, hiring and training a new employee can cost significantly more than simply increasing the salary of a current employee. The Society for Human Resource Management estimates that replacing an employee can cost anywhere from six to nine months of that employee's salary. Additionally, the Center for American Progress found that the cost of losing an employee can range from 16% of their salary for hourly, unsalaried employees, to 213% of the salary for a highly trained position. These facts underscore the financial motivation companies have to make counter offers.

Money aside, they also still would need to dedicate precious time to training the new hire and getting them up to speed. On average, it takes up to six months for a new hire to be fully sufficient.

The Risks of Accepting a Counter Offer

Accepting a counter offer can put you in a vulnerable position. You've shown your willingness to leave, and this could potentially lead to you being the first one let go during financial crises or company downsizing. It's also important to consider that they are likely now paying you more than they would like - further increasing your volatility.

Addressing Uncertainties Before Deciding to Leave

If you're considering leaving your job, address any uncertainties with your boss before making a final decision. This conversation will give you a first-hand look into how they plan on navigating your situation. If you don’t see common ground, it is likely time for you to leave. However, once you’ve committed to leaving, it's best to stick to your decision.

What if You Choose to Accept a Counter Offer?

However, if you do choose to accept a counter offer, make sure to discuss your expectations going forward. Consider non-salary incentives such as flexible hours, additional vacation days, or opportunities for professional development.

Remember, a successful negotiation is about more than just money; it's about securing a role and work environment where you feel valued and engaged.

In conclusion, navigating a counter offer when leaving a job can be tricky. Reflect on your reasons for wanting to leave, engage in open conversations with your boss, and carefully weigh the pros and cons before making your decision. And if you do choose to accept a counter offer, make sure it aligns with your long-term career goals and personal needs.