In today's competitive world, employee retention has become an important issue for companies, and most often, when an employee puts down his papers, the employer attempts to retain him by presenting a counteroffer to him. To a certain extent, this makes sense for the company as a considerable amount of resources in the form of time and money need to be spent for recruiting and training a replacement. However, does accepting the counteroffer make sense for the employee? Or, would it have undesirable repercussions for him?Although there is no standard correct answer to these questions as each situation is unique and the resignee usually needs to take into account a variety of factors while deciding on whether to accept the counteroffer or not, most recruiters and HR professionals strongly believe that accepting a counteroffer is one of the biggest mistakes that an employee can make. However, there are some who say that the accepting the counteroffer would not harm the employee if the reasons for the acceptance are right.
Here are some of the downsides of accepting a counteroffer:
Loss of trust: When you put down your papers, you are essentially telling your employer that you are unhappy at your job and are most probably moving out at the first opportunity that you have had. In such a case, would your boss ever trust you to stay with the company for long even if you do accept his counteroffer? Most probably not!
According to the some of the leading recruiters, when you resign, you essentially break the bond of trust you have with your company, which is very similar to cheating on your spouse. Even if you stay on later, the slight doubt that you will stray again and that it is just a matter of time until then will remain. You may eventually have to move on but that would be on their terms.
Some other hiring managers second the sentiment and add that things will change drastically after you accept the counteroffer and you will have fewer opportunities for career advancement. In fact, they state that the counteroffer may just be a trick to hold onto you until your boss finds your replacement and trains him.
Loss of the new opportunity: By now, not only will you have lost your boss's trust, but going back on an offer you accepted will also ensure that you lose the trust of your potential employer as well. Although you may not have committed to the new company in writing, your oral acceptance of their offer is seen as your agreement to work with them and they would have started planning accordingly. At this point, if you change your mind and decide to stay with your old company and if things do not work out for you after accepting the counteroffer, you would have lost out on a job that could possibly have been a better fit for you.
Your fundamental problem may remain unsolved: According to several top recruiters, employees who accept a counteroffer and decide to stay back have a more than 85% chance of leaving the company within the next six months. This is because the primary reasons for them to resign in the first place may not be resolved after they decide to stay back.
A few other things to consider before accepting the counteroffer are as follows:
Counteroffer - not a bargaining tool: If it takes a resignation for your boss to sit up and notice your work, it probably is not the right job for you. After all, you would want to be in a company that appreciates your hard work and recognizes your contribution to its growth. Why would you want to stay with a company that needs to be blackmailed into giving you your long-due promotion or salary hike?
Reasons for accepting the original offer: Before you decide on accepting the counteroffer, sit back and make a list of all the reasons that made you look for another job in the first place and think of why you accepted the other company's offer. While some of the points on your list may be the problems you are facing in your current job, the others may highlight the potential for growth at the new organization. If the new job offers you a better pay, more benefits, a better work culture, and better opportunities for growth, why would you want to say no to it?
Benefits offered in the counteroffer: Accepting a counteroffer makes sense only if the offer addresses all the concerns that you have with your current job, be they issues related to your salary or those related to the assignments given to you, or problems with the management. Further, when it comes to losing out on a good offer from a potential employer, if your current employer has addressed your concerns in the counteroffer and you have decided to accept this counteroffer, have an honest conversation with the potential employer and explain your reasons for rejecting their offer. For all you know, they may appreciate your honesty.
While there is no one-size-fits-all answer to whether you should accept a counteroffer or not, you should have a frank conversation with your manager about the issues you are having at work. If your manager does not pay sufficient heed to your problems, move on to the new company and enjoy the new opportunities that come your way.
