Resignation and counter offers: how to make the best choice for you

You’ve been offered a new job and you’re convinced it’s the right move. You hand in your resignation, fully expecting your employer to simply accept it. Your mind is entirely focussed on starting your new job. Then your employer stops you in your tracks by making a counter offer. It might be:

• an increased salary
• improved benefits
• promotion
• additional responsibilities
• or a combination of the above

Why would your employer make a counter offer? At a basic level, an employer makes a counter offer to retain a valued member of staff. At a deeper level, this could be to cut staff turnover costs, to not lose out to a competitor, or because you’re a valued part of their succession plans.

While receiving a counter offer can be flattering, it’s important that you weigh up the two options: old job with altered conditions against the new job. Let’s start by looking at the pros and cons of accepting a counter offer.

What are the pros and cons of accepting a counter offer?

It can be tempting to accept a counter offer, but it’s worth weighing up the benefits and downsides before you make your decision.

  The benefits of accepting a counter offer

The most obvious benefit of accepting a counter offer is the improved job conditions it will bring, such as an increased salary or the promise of a job promotion. Combined with the familiarity of the employer, workplace, company culture, and colleagues, this can often be enough to accept a counter offer.

Receiving a counter offer can also improve not only your own sense of worth, but also the feeling that you are appreciated by your employer and a valued member of their workforce.

  The downsides of accepting a counter offer

The main downside of accepting a counter offer is that it may not solve your reasons for resigning. For instance, an increased salary and improved benefits may not be the answer if you resigned to escape a toxic work environment.

Second, if your employer is only willing to consider you for promotion or improve your job benefits to stop you from leaving, they may not truly value you as an individual. They may simply want to retain any staff who try to leave. This means that once you accept, you again become just a faceless member of the workforce.

What were your reasons for resigning?

It’s important that you consider why you wanted to leave your current job in the first place. It might have been because:

• you find your job boring. It doesn’t challenge you or provide an opportunity to fully use your skillset and experience
• there is a clash between the company culture and your values, lifestyle, or personality
• there are no promotion opportunities available to you with your current employer
• your lifestyle or priorities have changed, and your job isn’t a good match for your current needs
• you want a better salary package, including a pay rise and improved perks

If the counter offer answers your reasons for resigning or can be negotiated to do so, for instance, a promotion, then staying may be the right move for you. Alternatively, if the counter offer doesn’t answer your motivations to leave, starting a new job may well be your best option.

How to negotiate a counter offer

If you decide to accept a counter offer, it’s important to negotiate the terms carefully. Follow these steps to make sure that this really is the best option for your career:

• Make sure you have the full details of what the counter offer includes. A vague offer of a promotion or a salary increase isn’t of any use. Ask your manager to provide full details of the counter offer, for instance, when the promotion will take place and what your job title will be, or what the exact salary increase will be and when it will take effect. Make sure you receive the detailed counter offer in writing or by email to avoid future disagreements.
• Compare the counter offer with your new job offer. Don’t limit yourself to a direct comparison of what your current employer is offering against your potential employer, for instance, salary against salary. Look at the entire picture of how staying under the new conditions of the counter offer versus moving to the new job will affect your needs, lifestyle, and career prospects. Don’t forget to consider your personal happiness too. Which job will be more fulfilling? What’s your gut instinct on this?
• Consider your reasons for resigning. Will these be answered by the counter offer? How can you negotiate the counter offer to remove those reasons?
• Have a one-to-one discussion with your manager about the counter offer. The purpose of this meeting is to tie down any missing information or details that need to be clarified, find out whether there is any room to negotiate the terms of the counter offer, and get a feel for how keen your manager is to retain you.
• Take your time to decide. This is an important decision so don’t feel rushed into accepting or rejecting the counter offer. If you accept, don’t forget to tell the other employer. If you decide to reject the counter offer, do so in a polite way that doesn’t burn bridges for your future career.

Wrapping it up

Receiving a counter offer when you resign can stop you in your tracks, but not necessarily in an unpleasant way. Consider all of the benefits and disadvantages of both offers – the new job against your current employment under altered conditions – before making a decision. Take the time to think about your reasons for resigning too, and make sure these are answered if you do accept the counter offer. Finally, don’t be afraid to negotiate the terms of the counter offer. Which ever way you jump, make sure it’s the best option for you.