April 2022 – 5 min Read
With the Great Resignation in the UK set to continue throughout 2022, counteroffers are at an all-time high! However, is accepting a counter offer the best thing for your career?
44% of professionals say they will not accept a counteroffer, but when presented with a great offer would they actually decline? Even if they did decline, that still leaves more than 50% of professionals open to accepting counter offers.
In 2021, half of employees that resigned were counter-offered by their current employer due to the competitive job market, but when faced with the offer – should YOU accept?
Why Do Companies Make Counteroffers?
Counteroffers are most common in candidate-driven markets such as accounting and finance, where employers want the staff they trained to continue on with the company.
Employers might be worried about losing a valuable member of staff, who know the company and their job role well, but chances are, they are more worried about the time and cost that is going to go into training a new employee.
It can cost as much as 213% of a senior executive’s salary to find a replacement when you factor in things like the recruitment process and training expenses. So, overall, it is still cheaper for the employer to make you a counteroffer than to rehire.
Should You Accept The Counteroffer?
In the moment, taking the counteroffer might seem like the right decision, as you won’t have to essentially ‘start over’ in another company and re-establish relationships with new colleagues.
You already know your company and how to do your job well and the extra money doesn’t sound too bad either. However, 80% of employees that accept a counteroffer leave within just 6 months, and 90% within a year.
Declining The Counteroffer
As enticing as money is – when it comes to your career, your health and happiness should come first!
With only 12% of employees resigning due to money, chances are, you are looking for a new job for another reason.
Research shows the top reasons employees left their last job were:
- Lack of progression opportunities
- Culture fit
- Poor relationships with Managers
- Lack of work-life balance
Remind yourself why you wanted to leave in the first place and ask yourself – “Will my reasons for leaving get resolved if I accept a counteroffer?”
The likelihood is, a counteroffer won’t address the concerns you have probably already expressed to your employer.
What Happens Next?
Studies show that after accepting a counter offer, your job security decreases, and the trust between you and your employer is broken. You’ll most likely be at the top of the list when it comes to things like redundancies, as you have previously expressed wanting to leave and therefore, could be seen as less loyal in comparison to your colleagues.
In some cases you may even be offered a counteroffer to essentially buy your employer time to find a ‘new you’, and it won’t be long before they let you go, leaving you searching for a job all over again.
The uncertainty going forward could make you even more unhappy than you were before and effect stress levels and productivity.
Taking the risk of turning down the counteroffer and making the move to a different company, could take your career to a whole new level that can introduce progression opportunities and an environment that makes you want to succeed in your new job.
Deciding whether or not to take that counteroffer can be perplexing. It’s important to think of the pros and cons before making a decision. You may want to seek out more information on your potential new employer or speak to someone with knowledge of the industry. In this case, it’s best to get in touch with an experienced recruiter who can help you make the right decision. NSTR’s experienced consultants can help you make the best choice for your personal and professional growth.
Get in touch with one of our experienced consultants today for a confidential discussion or any career advice.
Written by Kiera Jazwinski
Head of Operations