Should You Take a Counteroffer?

In a tough job market, workers often put off thoughts of searching for new employment and stick with their position. But as the economy gets better, studies show that many top employees will leave when they get an opportunity. Not wanting to lose them, current employers may make counteroffers.

But before you become too flattered by thoughts of meaning so much to the company that it can't bear to have you leave, experts recommend carefully weighing your reasons for staying versus going. Below are some things to consider when presented with a counteroffer.

A counteroffer may be in the company's best interest, not yours.

"After recruiting folks in this field for almost 18 years, I can unequivocally say that accepting a counteroffer, no matter the amount of money or promise, is career suicide," says Dave Vigliotti, managing partner of TSP Inc., a staffing firm in Portsmouth, N.H., that specializes in placing information technology professionals. As illustration, he offers this story:

"I had a candidate accept a counteroffer that was almost an additional $25,000 per year raise from her current salary of $60,000. How could you turn that down, right? Well, after two months, coincidentally enough when the company's system implementation ended, she was laid off due to downsizing. She only saw two months worth of that 25K, or about $4,000 before taxes. It was cheaper for the company to pay her the 4K than do without her knowledge base at a critical time. Even in the event the company was telling the truth and it was a true downsizing out of the blue, by accepting the counter she lost out on a new job that was providing all the things her current role didn't. Lastly, when deciding who to downsize, she already showed her desire to leave the company, which put her at the top of the list of who should be downsized."

Kevin Steele, president of Winter, Wyman -- one of the largest staffing firms in the Northeast -- voices similar concerns:

"When you resign, you make your supervisor's job significantly more difficult in the short term. In addition to the department being understaffed, the time, effort and expense involved in replacing you has him reaching for the panic button. Resignations at times also can reflect poorly on the performance of the manager, something he would naturally like to avoid. A knee-jerk reaction may be to fix this problem with a counteroffer, which might include more compensation, a new title, needed support, a flexible schedule or different responsibilities."

Making the choice

Deciding to accept or reject a counteroffer involves asking oneself some key questions, many of which do not have clear-cut answers:

• Why am I hearing a counteroffer now? Do they really value me as a professional, or are they just trying to solve their short-term problem of an employee leaving?

• Is my loyalty to the company going to be questioned if I stay since they now know I was looking at other places? Am I going to feel uncomfortable?
   


• Does this counteroffer really address the issues that led me to seek a different job in the first place?

• Which place best suits my long-term career goals?

To make the process easier, Steele recommends thinking about the possibility of a counteroffer before even stepping foot in the boss's office. Removing the element of surprise can keep emotions from taking over and give you time to analyze with a clear head. And if you know there's nothing that can be done to remedy the situation, he suggests stopping the counteroffer process at the beginning. "You want to leave on good terms, and having your supervisor woo you with counteroffers, which you know you will reject, can burn bridges."

Along these same lines, Vigliotti offers a final piece of advice. Before you seek another job, think about why you want to leave your current employer. "If it's really a matter of money, gather facts on current market rates for your skills and have an honest dialogue with your boss on why you deserve more, but don't threaten to leave. If you are valued, you won't have to threaten to leave to make a change."