| June 2024 |

Are you familiar with the Risks and Rewards of a Counteroffer?

Mastering the Art of Interviews Strategies - Empowered Decision

Exploring a scenario often arising in a career transition process.

WRITTEN BY: Laura Biggs

Understanding the complexities and implications of a counteroffer before you find yourself in this situation is crucial. Let’s delve into the intricacies of counter offers to help you navigate this decision-making process with clarity and confidence.

The Background
Counteroffers are typically extended to high-performing individuals in pivotal roles, critical projects, or skill-short environments. They serve as a strategic manoeuvre by companies to retain valuable talent and mitigate potential disruptions caused by unexpected departures.

Be Prepared
Before entertaining the idea of a counteroffer, it’s essential to assess your stance and preferences. Consider the emotional toll and potential ramifications of engaging in this process. If you decide against it, communicate your decision respectfully and decisively once the offer is presented. Avoid bluffing about alternative opportunities, as it can backfire and leave you without a safety net.

Benefits of Accepting a Counter Offer

Accepting a counteroffer can come with several enticing perks:

  1. Salary Increase or Promotion: A counteroffer may include a salary boost, promotion, or changes in location, reporting structure, or job responsibilities.
  2. Improved Satisfaction: Changing your circumstances can lead to increased satisfaction, happiness, and professional growth.
  3. Recognition of Frustration: Threatening to resign can serve as a wake-up call to your employer, prompting real changes and addressing underlying issues.
  4. Feeling Valued: Receiving a counteroffer can be flattering and affirming, signalling your value to the company.
  5. Re-evaluation of Options: A counteroffer provides an opportunity to reassess your decision and compare your options.
  6. Career Growth: Accepting a counteroffer may entail increased training, skills development, or challenging career opportunities.

“Your career trajectory is in your hands, and each choice you make shapes your professional journey.”

“Do you stay or do you go?”

Risks of Accepting a Counteroffer
However, accepting a counteroffer is not without its risks:

  1. Personal Fallout: Managers may take your resignation personally, leading to strained relationships and limited promotional opportunities.
  2. Disruption: Your departure could disrupt ongoing projects or team dynamics, and the counteroffer might be a temporary solution.
  3. Perceived Insult: Some individuals view counter offers as insults, believing recognition should precede threats to leave.
  4. Limited Future Reviews: Salary increases from counteroffers may be treated as “early reviews,” potentially excluding you from future raises.
  5. False Promises: Cosmetic changes or delayed promises may mask underlying issues, leading to eventual role restructuring or redundancy.
  6. Damaged Reputation: Accepting a counteroffer could tarnish your reputation with both your current and prospective employers.
  7. Golden Handcuffs: An inflated remuneration package may limit future career prospects and lead to difficulties in securing new roles.
  8. Increased Expectations: Higher earnings often come with heightened performance pressure and increased expectations.
  9. Loss of Control: Accepting a counteroffer may prioritize the company’s interests over your own long-term career goals.
  10. Post-Honeymoon Discontent: The initial allure of a counteroffer may fade, leaving you feeling disillusioned in the long run.

Empower Yourself with Information!

Ultimately, whether you choose to accept or decline a counteroffer, empower yourself with knowledge and foresight. Consider the full spectrum of risks and rewards to make a decision aligned with your career aspirations and personal well-being.