Refreshed October 2022
Today is a strange time, the job market is vibrant and salary increases over the last 18 months have been the highest for decades – the “war for talent” is very real including the tactic to retain resigning team members through counter offers. However where do we start with the interconnected uncertainties of today; cost of living crisis, Putin’s madness, energy fragility and unpredictable politics at all levels. Recession looms but the jobs market shines is a unique combination indeed!
It often happens that after being offered a new job, your current employer decides that they don’t want to lose you. It is important to remember and consider that when this happens, it is often in the company’s best interests for you to stay.
It can be easy to be charmed by the counter offer and the sense of significance its offering holds, however, the company is more than likely to be considering the cost of your replacement than they are valuing your worth. This is even more likely within financial services where each job is industry knowledge and experience based. The cost of training and replacing a new recruit can cost more than 213% of the annual salary. The counter offer is often given as it is simply economically more viable for you to stay.
Here are more reasons why you should think twice before accepting that counter-offer.
1. Why did you want to leave in the first place?
It is important to remember the reasons that pushed you to search for a new role, consider these other aspects; whether this is the environment, lack of progression or the work itself.
A brief search of counter offer statistics and the results are awash with articles stating that the vast majority of employees who accept the counter then leave within the following months, an important figure to consider
The counter offer has probably just removed your next salary review. Accepting a counter-offer is likely to have an impact on any salary reviews that were scheduled or would have happened within a reasonable timescale. Perhaps worth noting that your employer hasn’t considered your worth in relation to pay already!
The trust between you and your employer is possibly now under stress, it’s now well-known that you had planned and wanted to leave. This may leave a lasting and notable effect on the relationship you have with management and colleagues.
4. Will you be considered for promotions in the future?
When company reviews, promotions and restructures are being considered and you have sought to move on, where does this now leave you in the office and team dynamic?
Accept and push yourself towards new opportunities, personal and professional development. Does your new role offer new opportunities or progression in your field? If you were planning to move already, then use this move as an opportunity to improve and expand your knowledge, don’t let financials hold you back!
In summary, don’t be blinded by the monetary element of a counter-offer, which is only ever one factor and not the most important one at that. Nothing is as crucial as being happy at your job, in these times the counter offer is a commercial business response and tactic to retain you, if you were unhappy before then that will remain the case. Works both ways of course – if you are happy at your work – don’t chase the “greener grass” by leaving your perfectly good job just for more money! That could be even more reckless, especially today!