Ten Reasons to Reject the Counteroffer

If I am reading this correctly, this is absolutely untrue in my experiences.Again, I may be misunderstanding what "counter offer" means, so let me state my definition. A counter offer is one where one party declines the offer on the table and then the other party alters the original offer in hopes to strike the deal.

If this definition is correct, then I do not agree with your points, with possible exception to pint #2.

If the counter offer is from a current employer, then the reason that they are doing this is to retain you! However, you have to soul search to determine what it is that drives out of a company. If the employer is willing to change that for you to keep you on board, then they place that value in your abilities. Sometimes the money is what it is all about. I have known engineers to seek new jobs because they need the money to keep their family fed. That is not a sin. No employer should expect you to place the company above your loyalty to your family. If they believe other wise, I agree, ignore the counter offer and get out as fast as you can.

Everyone's situation is different, so you may be right to not accept the counter offer.

If this is a counter offer from a new prospective employer, here is why I would disagree and let me speak from both sides of the fence.

First, I have received offers from many employers. Without question I will push back with a reasonable no and state my case for what I am looking for (larger salary, more vacation, etc). When I job hunt I will also try to get as many offers at the same time so as to use one offer against another company's offer where I prefer to land the job. This must be done tactfully. By nature, everyone wants what they can't have and people also want what other people are wanting. So multiple offers improve your standing in a prospective employer's eyes because it demonstrates that you are employable and desirable.Second, respectfully declining an offer with cause (i.e., appeal for more salary, vacation, etc.) is almost always seen as a positive sign. When done respectfully is demonstrates your self worth and value as a negotiator. In most instances the worst that will happen is that you will get a "no" and then you must decide if the original offer is acceptable. Either way, if you should decline an offer, make sure that you inform the employer that you greatly appreciate the time and effort that they have taken and offer your regrets that "we" could not reach an agreement. Never, never bash any employer or their offer. Leave with diplomacy and be grateful for their time and effort. You never know what will happen tomorrow and they could be a powerful reference some day, too.I have had one company's manager call me back after we failed to reach an agreement a day later. I had written the job off, but the manager felt that the few extra dollars difference was not worth having me "walk", so he met my offer and I landed a great job that was a great benefit to all of us.From the hiring chair I can tell you that it scares me when I offer a salary package and someone simply accepts. My first thought is that I just paid too much. I do not mind haggling for something of value and it gives me a chance to peer into a prospect's mind when I enter the negotiation phase of a hire. I want an engineer with a degree of self confidence, but not cocky.Lastly, the job market is a buyer's market for most employers. Offers may not be easily negotiated unless you bring something to the table of special value. Simply getting an offer today is probable case to accept with gratitude.As far as being first out the door because you negotiated a higher salary, bunk! People are paid what they worth. If you return value on your salary, then you will be retained. I would never throw a valuable resource out the door just to keep a less valuable resource. Once you ink the deal, take your job responsibilities by storm and show them what you are worth. However, if you fail to deliver, then that's your own fault.Even if your starting salary is near the top for the job you take, employers do a good job of finding ways to skirt such hurdles if you prove you are worth your salt.

I highly recommend reading Martin Yates, Knock 'em Dead (ISBN-13: 9781598696721).

KER recruiter, Now you can see that the difficulty of communicating can be from insufficient detail in the set up- your counteroffer situation was too ambiguous as demonstrated by by Anonymous Heros different scenarios. While counteroffer means something quite specific to you in your field, in our eclectic group, it can mean several things...

I agree with your points given that the counteroffer is from your current employer trying to keep you on staff, upon learning that you have a better offer.

Once one has given "thy neighbors wife" (new job / employer) full consideration, it will never be the same with "thine own" (current job / employer).

This all raises the point though as to the folly of conditional job searches. "i'll leave if I find a better job."

The real decision should have been, " Do conditions warrant that I should leave my current employer?" If so, Then the counteroffer shouldn't even be considered.

But if it was just over wages, that question should have been asked of the current employer prior to going trolling. Then One knows that they aren't worth more $$$ to the current employer. People don't do that out of fear. So then they go down the slippery slope of conditional decisions...

And so the counteroffer, if made, is out of desperation to avoid /defer inconvenience to the employer, not a measure of worth.

I'm with you, if what I think you said is what you meant.

milo

I'm in agreement with this. When one is examining new jobs you have to take into consideration what is your reason for leaving in the first place.

Is it:

• Principles, only you can decide this by your own judgment:
• Are they treating you right?
• Are they treating their other employees' right?
• Are they treating their customers or suppliers right?
• Recognition for accomplishments?
• Compensation:
• Competitive wages?
• Competitive vacation, sick leave, retirement, medical, etc.?

On Principles, I have a 3 strikes rule. If I'm taken advantage of or poorly treated, I will on the first offense talk either to my manager or HR and flat out tell them that I expect respect and dignity in the work place. Every workplace has its own set of rules on how they expect employees to act. I let them know I have reasonable expectations as well and that they just got their first strike. If they get to 3 or a really egregious 2nd I will be elsewhere. I've gotten to 3 twice in 30 years. I wouldn't ever consider taking a counter offer if its based on principles.

If its compensation, make sure your compensation is comparable to the market place and ask your employer for an adjustment prior to seeking other offers. The exception to this is if an employer that has a track record of dropping people that seek competitive work packages from existing employees. If that's the case have a back up plan, but, that issue would go back to principles. If you don't get satisfaction by asking for a competitive compensation package and upon giving notice you get a counter offer, I think its up to you to decide which company would be better for you and your family and take a very sterile, clinical analysis of the offers.

I think KER is talking about what happens when you turn in your resignation and your employer makes a counter offer in hopes of keeping you. Usually (at least in the US) in a hiring situation the employer makes an offer, and then I fully endorse the employee making a counter offer. Employers tend to start low in hopes that you will grab the first offer. But he is talking about the employer making a counter offer.

This is the situation where you have turned in your resignation and the employer makes an offer of higher salary to keep you and I agree that it is generally a bad move to accept. If for no other reason than that it demonstrates indecisiveness. If you decided to go, then go and don't look back!!

Interesting subject, KER, but the points you raise are sometimes puzzling. Point by point:

1. What type of company do you work for if you have to threaten to resign before they give you what you are worth?

The most usual kind. If you are suggesting that only bad companies do that, then most people will never have a choice, really.

2. Where is the money for the counteroffer coming from? Is this your next raise come early? All companies have strict wage and salary guidelines that must be followed.

That's true, also in support of my comment on point 1.

3. Your company may immediately start looking for a new person at a cheaper price. When times get tough, your employer will begin the cutback with you.

Not unless your supervisor is a vengeful maniac/ complex-ridden company lackey. Mostly, however, employers who don't take exceptional care of their employees are simply indifferent. If they fire you, chances are they'd do it anyway.

4. You have now made your employer aware that you are unhappy. From this day on, your loyalty will always be in question.

True. If that translates to an active effort on its part to keep your loyalty, it's a good thing. Being taken for granted is not.

5. When promotion time comes around, your employer will remember who was loyal and who wasn't.

True. But do you really expect a promotion when, until you threatened to leave, no-one took notice you existed? May happen, but not often.

6. Things will never be the same with your company. They will always be looking over your shoulder and questioning every appointment you have, wondering, "Are you interviewing again?"

Since when does it matter what anyone may be thinking? Seriously. Who cares what anyone thinks? Such sensitivities...

7. The same circumstances that now cause you to consider a change will repeat themselves in the future. Even if you accept a counteroffer, nothing really changes.

Now this is insightful. Best point yet.

8. Statistics show that if you accept a counteroffer, the probability of voluntarily leaving in six months or being let go within one year is extremely high.

Then it must be true. It certainly makes sense.

9. Accepting a counteroffer is the equivalent of "being bought".

How exactly do you mean 'being bought'? And how is this a bad thing? It certainly isn't derogatory to the employee receiving the raise. This is what professionals do. Unless one claims that professionals looking for work are 'whoring for money'.

10. Once the word gets out, the relationships that you now enjoy with your co-workers will never be the same.

Most of the time, when one is being treated indifferently by an employer, his co-workers are too. Chances are, you'll gain more respect from them for pulling this off, when they don't dare do it. True, some may be jealous. But, as in point 6, who cares?

Anyway, others have already noted the most remarkable point: If you ever decide to leave an employer and the reason is not just a higher salary, it is a bad choice to stay. Period. Besides, employee retainment counter-offers are usually made reluctantly and as such are nothing to write home about.

Finally, KER, let me ask you a favour: What I really would like to see in your columns is information. Insights to recruiters' data, thinking and initiatives. IMO this is the true added value you can bring to CR4. I would also like to see you participate in the discussions you commence.

Please do not overdo it with the advice (which can be found in any of the recruiting sites on the web), or the '10-point receipes', especially since there are many experienced professionals here.

All the best

p_x

Hi Jake,

I.e. if I were an expert in gearing and had some new test data (perhaps regarding a modified tooth geometry or a new lubricant), in addition to publishing them in whatever other appropriate venue, I might blog these results here in CR4.

Correspondingly, if I were a recruiter, I'd have a clear picture regarding who is hiring, who is firing, who seems to retain their people, who is ethical, who has got the most satisfied employees etc: Meaningful info on the employers that jobseekers need most but normally can't find. I'd share that info and insights in CR4.

2nd: Everyone is always talking about competitive salaries and market average, but what are companies really paying? I suspect a lot in CR4 would like to know concrete details. A recruiter has the largest sample base and hence the most reliable data.

etc etc

A little (unfiltered & genuine) gossip does not hurt either, when there is something useful to be learned. We gossip here all the time. Be my Guest (yes, I too have a registered persona).

Actually, working in EU I have no personal use for all this info, but I'd bet many have, especially the younger members. However, I am certainly interested and will be following your column. Thanks for the stimuli!

I am also of the opinion that if, gradually, you shed your KER agenda and just be one of the guys here (no-one logs in here representing our companies), contributing what you know well, you'll contribute just excellently. Look at hero, milo et al. 1000s of posts, and always often something interesting to say!

Kind regards

p_x

Others may have a different opinion than me but here is my two cents.

I was in this situation late last year, I had worked for a company for 6 years and change and was angling towards a new position in a new facility within the company. My supervisor and the potential new supervisor were both on board with me moving to the new spot and during 2 of my last 3 personnel reviews I had expressed this interest both in the review and in writing so that it was clear this was what I wanted to do. I was more straight-forward than I usually would be because I had been down the road of not communicating well and getting the shaft previously.

Long story short, they continued to shaft me until I resigned and then I got the offer I wanted literally the next day plus a call from the VP of the group, who had been blocking my move behind the scenes the whole time, I suspect because of the cost of a re-lo package.

Looking at the counter-offer, I had five reasons to reject that were all related to each other:

1. Accepting the counter-offer after already telling the other company I was on my way would be, in my opinion, dishonest and not in keeping with the standards I hold myself and others up to.
2. If I stayed with this company, I would be in the same spot a few years later wondering why I continued to let this happen to me.
3. This was not a person or manager that I was fighting, it was a company culture and it would always be there.
4. If I took the counter-offer, I would be no better than them, accepting what amounted to a bribe to tolerate their dishonesty and bass ackwards politics because all I cared about was money and not my professional or personal development.
5. I would end up unhappy in the long run and wondering "what if".

The 10 reasons in the OP above pale in comparison to the shame I would have felt in reneging (sp?) on the other company's offer or using that offer to leverage my existing company.

The new company mentioned the fact that they thought I might get a counter-offer and I told them not to worry about it, that once I accepted I was on my way. I also did not haggle with them about my salary as what they offered was fair and I would rather earn additional money in the long run than get my max up front and leave people with a bad taste in their mouth.

If that is the sign of a poor businessman then so be it, I'll just have to be a poor businessman.

I haven't regretted the decision to leave yet.