Counteroffer management

Finding a new job can be really exciting. It can open up new chapters in life, create new and lifelong friendships and bring on new challenges and experiences. However, it can be understandingly difficult to leave your current employer. On top of this, counteroffers can leave you feeling confused and unsure about your own decisions.
 
So, what is a counteroffer? Why counteroffers are made, how to effectively handle a counteroffer and how to ensure a professional exit from your current employer.

A counteroffer is essentially an offer made from your current employer in response to an offer received by another employer. A counter offer generally aims to compete with the offer received, to convince you to stay at your existing job and ultimately decline your new job offer. It can be enticing and make you second guess your decisions.

A salary increase, growth opportunities, a promotion, more flexibility, change in days/hours worked, increased responsibilities or duties, especially in an area of interest to you, a new job title. All of these counteroffers combined are examples of what a counteroffer can look like.

A counteroffer can be extremely tempting and quite attractive, but that is the intention. Your employer may discuss how well you've performed and what they can offer you to convince you to stay with them. It will be very flattering to hear all these compliments, but that is the intention. It would be understandable for you to want to accept in the moment.

It's important to keep in mind why counter offers are actually made. Counteroffers are generally made because it can often be easier to keep someone familiar with the role and business, someone that already has the right skills for the role and is a good culture fit, rather than having to find a replacement. The recruitment process is not an easy one, it requires time, money and the right resources to replace you and this is something your current employer might not have. Recruiting another employee at your level can be extremely expensive. Therefore, it is likely that if they can avoid this process, they will.

Often a counteroffer can be referred to as a ‘band-aid solution’ temporarily covering the underlying issue of why you want to leave. Anecdotally, those who accept a counteroffer, are in all likelihood to resign in the following months. This is why it is important to really sit back and think about why you want to leave your current employer.

What are your motivations? What are your objectives? There could be many factors for wanting to leave. Is it money, or are you bored in the role? Are you needing most responsibility or more recognition? Or are you wanting to work in a bigger or smaller team? Think about what your employer could do to convince you to stay. If you love your job and your team but all you are seeking is a pay rise, or more work from home flexibility, then explore these options with your manager first. This will save you and employer time. 

Ultimately, it is your decision whether or not you accept a counteroffer. However, it is important that you understand what your future goals and objectives are and the possible consequences of what may happen after accepting a counteroffer. I would suggest making a pro's and con's list so you can really visualise your motivations. If you are working with a recruiter. Be frank with your recruiter in the interview and why you're moving on and be true to your real motivations, not what you think someone may want to hear.

If you decide to accept the counteroffer, keep in mind that trust might be lost, from both your manager and fellow colleagues. You might have accepted a new challenge or pay rise when accepting a counteroffer, so keep in mind that your employer may demand more of you in this instance. Your resignation will be remembered, and if you've stayed for more money, your loyalty might be questioned.

If you decide that your reasons for leaving outweigh a pay rise or flexibility and are related to the environment, future career growth or happiness, then you can ensure a professional exit by having the discussion with your employer. Always, thank them for the opportunities they have offered you to remain with them.

Once you have made the decision that you will be moving on, new employers may require a reference from previous and most recent employers, so it is important to leave on good terms. You want them to only have good things to say about you.

A letter of resignation is written to announce your intention to leave your current position and a notice period is the length of time your employer is aware of your departure before you actually leave. Your notice period commences from when you hand in your letter of resignation and ends on your last day of work. The length of your notice period can vary, and you can find this requirement in your employment contract.

Finally, if you do require any further assistance on how to manage your resignation and counteroffers, please feel free to reach out to me. We can often guide you in these situations, we deal with them on a regular basis.

This blog has been resoucred from people2people's Talent Webinar: Finding a job in Victoria.
To watch this webinar, please follow the link.