04 Jul #SayNo To Counter Offers
Statistics show that you are better off saying no to a counter offer from an employer when you resign, and they all point to the fact that the power a counter offer holds is heavily weighted to benefit the employer, not you.
Imagine you were about to buy a new car, you have test driven and been approved for finance and when you arrive at the dealership to trade in your old car it suddenly runs better and more economically. Would you still trade it in? Would you forget the reasons why you wanted a new car in the first place? Or will you realise that the sudden change in performance is likely temporary?
Likewise, when you resign from a job because you have found a new opportunity, the counter offer is a small reprieve from the factors that caused you to look elsewhere in the first place. There are a number of statistics that highlight this;
- 50% of people who accept a counter offer from their current employer are searching for a job again within 2 months
- 80% of people that accept counter offers end up leaving within 6 months
- 90% of people who accept a counter offer leave the employer within a year
You are likely to leave anyway. Whether you leave at this point or later is up to you. However, if you have gone through the process of finding, applying, interviewing and receiving an offer for another job you need to understand all that you have invested in it, you are discarding. The new company will likely find someone else, and when you realise 6 months down the line that you made a mistake, you have to start the whole process over again.
It can cost over 210% of the annual salary to replace a senior executive
This statistic highlights exactly who the counter offer benefits the most. Your counter offer would likely be an increase of 10-20%, which is a huge saving to the company if you stay. Aside from the financial benefit, your loyalty and dedication is now in question as well. Do you really feel that everything will be perfect after you’ve resigned and accepted the counter offer?
50% of employees that resign will receive a counter offer
Don’t think that faking a resignation to get a higher salary is the way to go either; you might end up with no counter offer and egg on your face.
The reason people usually accept a counter offer is that we are attracted to the familiar home-base that we have grown comfortable with. Sure, you may feel that your unhappiness has been addressed by the counter offer and that you can avoid uprooting your life to start anew elsewhere, but think of how great it will be at your new home.
At the point of you accepting a new job offer you would have seen something you like in the new opportunity. The worry of having to adjust is normal and you need to trust yourself to be able to fit in, much like you did once at your current employer. Once you settle in you will look back and realise that your growth is more valuable than the few changes that would have been made in your old role.
And you will be happier for it.