Navigating a job counteroffer can be a delicate process, requiring confidence in yourself and respect for the employer's perspective. It can be tricky knowing when to even consider a counteroffer, since you likely have reasons for seeking a new job.
The ultimate goal is to strike the right balance between advocating for yourself and maintaining professional relationships with all parties involved. We’ve got tips from our employment experts on how to handle a job counteroffer and details on the factors you should consider before putting in notice at your job.
Be Prepared for a Counteroffer
There are many scenarios where a counteroffer may come into play after you tell your current employer that you’ve accepted a new job. It can depend on your role in the company, the responsibilities of your job (and if anyone else is able to take on those tasks in your absence), how far you are in your career, and the impact on the company if you leave.
Receiving a counteroffer is always a possibility, so it’s best to be prepared for that conversation just in case. Think about your reasons for seeking a new job and plan what you would say in response to a counteroffer. Is there anything — a raise, a promotion, a new role — that would tempt you to stay?
If money is your sole reason for leaving, it’s best to have that conversation with your manager before you start a job search. Looking for a new job in the hopes that it will help you negotiate a raise in your current job should not be your only motivation. It’s usually easier to talk with your manager directly about a salary increase and then use that information to determine if you want to leave.
Factors to Keep in Mind
If you do receive a counteroffer after putting in your notice, remember that you’ve invested time and energy into the job search process so it’s best to avoid rash decisions. Some key things to consider are:
- What were your reasons for job searching? When people leave jobs, it’s typically not only due to money or a title. There are frequently larger issues tied to workplace culture, communication, or leadership. Think about why you want to leave. Getting a counteroffer that bumps your salary would probably not erase those reasons. If you know that no counteroffer will entice you to stay, be upfront with your employer about that from the beginning.
- Why did they decide to make a counteroffer now? Was the counteroffer made in the short term to allow them to prepare for losing you? Employers don’t always make counteroffers because they suddenly recognize your value. More often, they do it to avoid the hassle and cost of replacing you. Hiring and training a new employee can be expensive, and losing a key team member can disrupt workflow. A counteroffer is often a short-term retention strategy rather than a genuine commitment to improving your work experience. Regardless of the reason, know that the perception of you has changed and you will want to think about the effect of this on your role and advancement opportunities as you move forward.
- Does this burn a bridge with a potential future employer? Perhaps you are very excited about a new job opportunity that aligns with your goals. Accepting a job from a new employer only to rescind that ‘yes’ after you receive a counteroffer from your current job can paint you in a bad light. You may want to keep the door open with that company for the future, so be professional and open in all of your communications.
How to Negotiate a Counteroffer
What happens when you get a counteroffer that is tempting enough to change your mind? Think about all of the pros and cons and proceed carefully. While counteroffers can be tempting, they often serve as a temporary fix rather than a real solution. If you’ve already decided to move on, trust your instincts and embrace the new opportunity ahead. Your future self will thank you.
Be sure to get any initial offers and counteroffers in writing, whether it’s from your current employer or a potential new employer. This solidifies what you’re being offered and provides you with protection, so there are no surprises later. Communicate in writing when you negotiate a counteroffer and always be respectful and forthright.
It’s OK to go back to your potential new job and explain that you received a counteroffer you are considering. Ask if their initial offer was final or if there is any room to negotiate, but don’t use the counteroffer as a tool to leverage more money from a new employer. This can start you off on the wrong foot in a new job.
If you consider a counteroffer but ultimately decide to decline it, let your manager know you are leaving, explain your reasons why, and say you want to part on good terms.
Handling counteroffers requires tact and thoughtfulness. The bottom line: be open, honest, direct, and professional to avoid damaging relationships. If you're looking for more guidance as you navigate a potential counteroffer situation, contact us to get connected with on of our employment experts.