So let's say you get a job offer from another company and you either 1. ask your current company to make a counteroffer or 2. you tell your current company and they make you a counteroffer. What do you do? Well unless there are VERY SPECIAL circumstances, don't accept it. Why? Because it hardly ever works out. Here's what the Wall Street Journal says about :
Still, "counteroffers rarely work as they often make the company feel like they have been held hostage," says Jo Bennett, a partner with Battalia Winston, an executive search firm. The best strategy would have been for you to make up your mind and decide what you wanted to do first, then approach your firm.
And even when you announce that you're leaving and they make the counteroffer on their own initiative, it still usually doesn't work out. :
Over 85 percent of employees who accept a counteroffer leave their company within a year.
Companies hate being fired by you. A counteroffer is a way to keep you around temporarily until they can prepare to replace you when you ultimately do leave. One executive shares this story about counteroffers:
The senior partner cites a long conference he once attended with his boss and two subordinate managers, in which they approved a counteroffer and raise to an employee two levels down. “Immediately after that meeting, my boss called me and said, ‘We can’t afford to lose him now, but our No. 1 priority is to find a replacement, ASAP!’ he says…And we replaced him within a few months.”
And there is the sober truth: counteroffers are made primarily for the company’s profit. If you stay on, your loyalty will probably be under suspicion. Other employees may be jealous of you. And you might realize that money was not the real reason you wanted to leave.
I've been in the workforce for 20 years now (yes, it pains me to say that) and I can say this is absolutely true. I have NEVER seen a counteroffer work out -- either the company starts planning to get rid of the employee (as noted above) or the employee leaves anyway because the reasons he wanted to move in the first place (like the job stinks) still exist.
I searched the web and found a few more resources for you to read just in case you aren't convinced:
- Here’s a (though the site design is hideous).
- More on .
- , though they do admit:
"Nine out of 10 times, counteroffers end up being the departure platform," says Mark Lonergan, managing partner with Lonergan Richards, a Redwood City, Calif., search firm. "The people who accept find they lost points around trust, and it's more difficult to get their jobs done, because they're no longer considered part of the team."
In other words, accept a counteroffer at your own risk.
I'm sure some of you have had counteroffers (and maybe some even took them and they worked out.) I'd be interested in hearing your stories.