Debra Auerbach,
When an employee resigns, it's common for the employer to
counter with another offer in order to persuade the employee to stay. It
takes a lot of time and money for a company to find and replace
valuable staff, so unless the decision is mutual, the company will want
to do what it can to retain the employee. Given today's tough job
market, who wouldn't want to be in a situation where two companies want
you? Yet the counteroffer can often create more problems than it can
solve.
When human-resources professionals and recruiters
were asked whether accepting a counteroffer is ever a good idea, most
replied with a resounding "no." A few cases were made for taking a
counteroffer, but only if done so for the right reasons and in the right
way.
"Recognizing all situations are unique and there is no 'one
size fits all' answer, the potentially departing employee needs to
consider a number of things when faced with this scenario," says Fred R.
Cooper, managing partner at Compass HR Consulting.
Why accepting a counteroffer may backfire
You may lose trust. By
telling your employer you've either been offered or accepted another
position, you're essentially saying you've been unhappy. So even if your
company does counter, how can it trust that you won't eventually stray
again?
"By resigning, you've severed the bond of trust with your
company," says Judi Perkins, career coach and founder of Find the
Perfect Job. "It's like catching your partner cheating. There will
always be that bit of doubt. You'll eventually leave the company, but
next time it will be on their terms, not yours."
Elene Cafasso, president
at executive coaching firm Enerpace Inc., agrees, saying, "You could be
seen as a 'short timer' and be passed up for promotions, the best
projects, etc. Your current employer may just counter [the] offer to
keep you around long enough to get your replacement identified and
trained."
You can burn bridges. Just as threatening to
resign can leave a bad taste in your current employer's mouth, going
back on an offer you accepted from another company can sour its view of
you as well. Even if your acceptance was oral, it's still viewed as an
agreement between you and the company. If you decide to stay put but
things don't get better, you've burned a bridge with a company that may
have been a better fit.
"If the hiring company has released the
other candidates and announced your imminent arrival -- that you then
renege on -- you just ruined your reputation with [a] top-rate company
in your industry," Perkins says.
Your problem won't necessarily be solved. "If
the person accepts the counteroffer and stays with their current
employer, there is better than an 85 percent chance that the person will
leave the company within six months," says Alan Fluhrer, CEO of
recruiting firm Fluhrer & Bridges. "This is due to the fact that the
underlying issues have not been resolved."
It shouldn't take a counteroffer to get what you want. It's
rarely a good idea to look for a new job for the sole purpose of using
it as a bargaining tool with your current company. Not only does that
send the wrong message, but it shouldn't take you threatening to leave
for your employer to see your value. "What does it say about your
current employer if you have to basically blackmail them to get a fair
salary, recognition and/or opportunities for advancement? Why would you
want to stay?" Cafasso says.
You accepted the original offer for a reason. If
you've accepted an offer from another company, you've likely done so
after much contemplation and for a variety of reasons. Some may have to
do with issues you're having at your current company, while others may
be because you see opportunity at the new company. Cooper suggests
thinking about the situation like this: "With this new job, I've made
'the cut': I'm the one they want. I've researched the company and its
culture and it is someplace I want to be. I want this new opportunity
for all the things offered and more -- it provides the financial,
emotional, cultural and/or other things missing in my current
employment."
When a counteroffer is worth considering
"Obviously
each situation is different, but certainly accepting a counteroffer can
be very appropriate, if it addresses the 'itch' that caused you to look
at alternatives in the first place," says John Millikin, clinical
professor of management at Arizona
State University's W.P. Carey School of Business. "People tend to
listen [to executive search calls] when they are unhappy with current
assignments, feel blocked on advancement, have issues with their own
management, etc. A successful counteroffer needs to address these
concerns, as well."
When it comes to burning bridges with the
company from which you accepted an offer, Millikin says there is always
that chance. "You can, however, mitigate some of that by simply being as
transparent [with the hiring company] as possible. If you were candid
about why you might leave, it is easier to tell a convincing story about
how your current employer truly addressed the concern."
Addressing the issues head-on
While
the answer to whether you should accept a counteroffer isn't black and
white, perhaps the best approach is to address the issues you're having
at your current company before they get so bad they drive you to leave.
If you tell your manager and nothing improves, then you'll never wonder
whether things would have gotten better. You can move on to your next
opportunity without looking back.