Why it’s never a good idea to accept a counter offer

The days when a salary-boosting counter offer would successfully retain a resigning staff member are over. Staff retention relates to much more than salary alone. 

People leave jobs for a range of reasons, including dissatisfaction with their current role. A counter offer to a resignation will rarely address why you want to leave in the long term. 

If you receive a counter offer from your employer, it’s important to compare short-term gains vs long-term job satisfaction. In this blog, our experts offer advice about how to respond to a negotiation during your resignation. 

What is a counter offer? 

Firstly, it’s important to recognise when you’re in a position to reject or accept a counter offer. A counter offer when resigning is a negotiation from your employer in an attempt to retain you as an employee.

Your employer may present a revised offer, to adjust your salary, job title, or benefits package. This is an attempt to persuade you to stay with the company, instead of handing in your resignation. 

How to respond to a counter offer from your employer 

Consider why you want to leave your current role 

Common reasons for changing jobs include:  

• Looking for a new challenge
• Seeking career progression
• Wanting to work with newer technology
• Hoping to contribute more and feel valuable   

Before accepting or rejecting a counter offer, think of the reasons why you want a new role to begin with. Remember: your reasons for leaving should be strong enough to make you search for a new job. You’ll have to apply, interview, and accept a new position. These are not the actions of someone satisfied in their current role.

Of course, it’s flattering when your boss makes a counter job offer upon hearing of your decision to resign. However try to look at the situation objectively. Recruiting and onboarding a replacement can be time consuming. If there’s even a small chance of avoiding the interviewing, onboarding and training process, your boss will take it

Why would a pay rise, new job title or additional benefits be anything other than a tactic to convince you to stay? Ask yourself whether the counter offer really addresses your reasons for leaving. 

Think about what happens if you choose to accept a counter offer and stay 

Risks of the same issues resurfacing 

The majority of people who accept a counter offer find themselves handing in their notice again within a year. For many employees, the original motivations for looking elsewhere remain an issue. 

The potential long-term repercussions of accepting a counter offer can be significant.  

Risks of low engagement or distrust amongst your team 

If you stay in a role after a counter offer, you may feel like your career is in limbo. Engagement and motivation are likely to be low. Added to this is the broken trust that now exists with your boss, which can be difficult to deal with. Distrust could limit future opportunities within the organisation, since employers are potentially less willing to give you more responsibility, fearing you may want to leave the business again.  

Not only are you worrying about how your boss perceives you, but your colleagues, too. They may view your loyalty and commitment differently, leading to distrust and fractured relationships.  

Risks of work-life imbalance 

The emotional toll of new relationships with your team can be a heavy burden. You may even find yourself putting in extra time and effort. Ultimately, there’s a risk of compromising your work-life balance for little reward in winning back the trust of the organisation.  

Are there any benefits to accepting counter offers? 

If your existing employer issues a counter offer, take time to think it through. These offers are unlikely to work out in the long term. However, there can be some advantages depending on your situation and goals:  

Consistency and familiarity

Changing jobs can mean a lot of upheaval. If you’d rather not start again at another company, staying where you are could be best. It can be challenging to pull yourself out of your comfort zone.  

For some people, it can cause stress and anxiety to continue your job search. For those individuals, negative feelings may outweigh the benefits of moving on to another opportunity.  

A salary increase for the same workload

The chance to keep your current position with a higher salary may be enough to convince you to stay with your current company. If you receive a pay rise, you might find your role more rewarding, and it can be a confidence boost.

Career progression

If you consider leaving, your employers may give you a promotion or help you advance in your career. Some employers may genuinely recognise your value and offer you career growth opportunities to make you reconsider your resignation. Counter offers could include more training or leadership opportunities.  

But remember, as appealing as some benefits may sound, it is important to remain cautious about how genuine the employer is.  

While every situation is unique, I would urge you to consider your original motivations for leaving. Always question if the counter offer is worth staying for. 

10 questions to ask yourself to help you decide if you should accept a counter offer 

You can use this handy checklist to assess whether staying with your current employer is the right decision: 

1. Have you listed the reasons why you wanted to leave your role, and does the counter offer fully address these reasons?
2. Do you believe your employer values you, or is the counter offer a reactive measure?
3. Did your employer consistently appreciate you in your role before you decided to resign?
4. Does staying align with your career goals and aspirations?
5. Are you motivated by the new opportunities within your current organisation, or are you staying for convenience?
6. Can you rebuild trust with your manager and colleagues after resigning?
7. Does the financial incentive outweigh the reasons you initially wanted to leave?
8. Is the external job market offering better long-term opportunities than your current role?
9. Are you genuinely excited about staying, or do you feel apprehensive about your decision?
10. Is this decision driven by fear of change or a desire for growth? 

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