Is taking a counteroffer a good idea?
Counteroffers can be tempting, but is it always a good idea to take one?
Posted November 13, 2024
Like most of us, you have switched jobs or embarked on an alternative professional path at some point in your career. Whether your move was encouraged by financial goals, career progression or achieving a better work-life balance, it can be tricky to navigate exactly which direction is best suited to you.
First and foremost, there are many different reasons people may consider leaving a role. From financial considerations to a change in company culture, no situation is the same and often we find ourselves forgetting our initial reasons for scouring the job market in the first place, especially when our current employers are asking us to stay. Our recent survey revealed a plethora of reasons candidates considered leaving a role, including career progression, financial circumstances, a change in leadership or culture, new goals, flexibility opportunities, enhanced benefits, lack of satisfaction or even just eagerness for a new challenge. Whether your decision was based around these or something totally different, moving on from your current company often isn’t a decision that’s easy to make.
What exactly is a counteroffer and why may your current employer propose one?
A counteroffer is an alternative offer made by your current employer in response to you handing in your notice letter. These offers can be highly tempting, as they often include a substantial pay rise or promotion in an attempt to retain you and your skillset. From your employer’s perspective, retaining their valued employees will not only avoid team disruption and prevent workload falling on other members, but steer away from additional hiring costs and time needed for training an additional employee.
For some companies, good overall employee retention is invaluable where longevity of experience is essential in driving stronger company performance.
Receiving a counteroffer can be stressful
Receiving a counteroffer may increase your sense of value and worth and ultimately taint your view on why you wanted to leave. Of course, counteroffers can be tempting as they come with a sense of familiarity and reduce the stress of moving to a new company and taking on a new role. However, during the counteroffer process, it is incredibly important to revisit your initial reasons for leaving and avoid becoming one of the 73% of candidates regret taking a counteroffer..
The glow of receiving a counteroffer often doesn’t last long, and many candidates report the following issues in accepting one:
- More often than not, there is a short-term financial reward which comes with a stagnancy in career progression.
- The underlying issues will still be apparent when you get used to your new salary.
- The company culture will still be the same.
- You could just be introducing your pay rise or promotion early rather than when it is due.
- Staying inside your comfort zone is likely to hinder your ability to move forward in your career.
- You may not be respected in the same way you were before.
- Your current company may not have the capacity to fulfil your future career goals.
How can Jackson Hogg support you?
At Jackson Hogg, we are aware of how stressful it can be to take the next step in your career. We work hard to find the right job for the right candidate because everyone deserves to love what they do, and this drives us to support candidates every step of the way. We are passionate about building strong relationships and valued connections with both our clients and candidates, and, of course, we are dedicated to using our industry expertise and specialist knowledge to prepare you fully for the next stage of your career.
Are you thinking about changing roles? Let us help.
Share this Blog
Centred around care, trust and respect
Remote vs. Hybrid: STEM Job Market Trans...
Explore the possibilities of remote STEM jobs and hybrid tech work models to stay ahead in the dynamic job market.
Jack Roberts
Jack joined Jackson Hogg in 2018 after relocating from his hometown of Manchester. Jack began his career in a STEM marketing agency in Manchester...
HR Update - November 2024...
Our monthly update on all things HR and employment law, from our HR Partnership team.
Katie Orme
Katie joined Jackson Hogg in 2022 after working in the steel manufacturing sector for 3 years. She joined us as a consultant working within our...
Is taking a counteroffer a good idea?...
Counteroffers can be tempting, but is it always a good idea to take one?
Lexie Farrar
Lexie primarily focuses on Precision Medicine, OMICS and CGT tools within the US and Europe. Lexie joined Jackson Hogg at the beginning of May 2024...