Counter Offer:

What Is a Counter Offer?

In the world of career moves, a counter offer is when your current employer tries to persuade you to stay after you’ve announced your resignation, often by offering a raise, promotion, or new perks. While it can feel flattering, it’s important to consider what is really motivating this gesture.

The Unhappily Employed

Most of us have been there. Early in my career, I worked as a CAD specialist in North Carolina. At first, I found the job interesting, but after a while, it became repetitive and unfulfilling. I wanted more, but I remembered my dad’s advice: “Always have a new job lined up before you leave.”

There are many reasons people look for new jobs while still employed: boredom, lack of growth, or simply wanting a change. If you are job hunting while employed, you know how challenging it can be.

Clarifying Your Reasons for Leaving

Leaving a job is rarely easy. My advice? Make a list of what you love and dislike about your current role. This “love/hate” list will help you:

• Confirm whether leaving is the right choice.

• Define what you want in your next position before you start the job search.

The Counter Offer Dilemma

You’ve accepted a new job and are ready to move on. But when you submit your resignation, your boss surprises you with a counter offer. Now what?

The Allure of the Counter Offer

Most people don’t leave solely for money. They leave because they feel undervalued or see no path for advancement. Deciding to quit is an emotional task because most individuals are simply looking for appreciation.

This is why counter offers can be quite seductive because they can feel like overdue recognition, but in my 20+ years as a recruiter, I have seen that most people who accept counter offers eventually regret it. Here is why:

The Real Issues Remain

Think back to your love/hate list. Why are you only now being offered a raise or promotion when it wasn’t an option 30 minutes ago?  Did you know that, according to Gallup, the average cost of replacing an individual employee is conservatively estimated to be 150% of their annual salary?

Therefore, isn’t it fair to believe that the counter offer is usually related to management trying to avoid the cost and hassle of replacing you rather than truly addressing your needs? And, if your reasons for leaving go beyond compensation, a counter offer likely won’t fix the root issues.

Your Loyalty Is in Question

Once you’ve announced your intention to leave, your employer may see you as a flight risk, even if you stay. Research shows that 70-80% of employees who accept counter offers leave or are let go within a year.

Company Maturity Matters

Mature, well-run companies rarely make counter offers. They already pay competitively, invest in career development, and regularly check in with employees about their satisfaction. If your company suddenly scrambles to keep you, it may be a sign of deeper issues.

How to Gracefully Decline a Counter Offer

While a small percentage of counter offers work out, it’s wise to weigh the risks. If you decide to decline the offer and move on, be gracious:

• Thank your employer for the offer.

• Clearly state your commitment to your new role.

• When the time is right, share your feedback about why you chose to leave; this can help your manager improve the workplace for others

Need Guidance?

Unsure about your next step? We help job seekers and employers navigate these situations every day. If you’d like confidential advice or support in finding the right fit, contact us.

You can also join our community and openly ask questions. We are here to help you make the best decision for your career.