263: Job Counteroffers: How and Why to Accept and Decline
Job Counteroffers: How and Why to Accept and Decline
Let me start by saying there are good reasons to accept a counteroffer from your current employer. However, if the ONLY reason you are even considering the counteroffer is because it pays more than the outside offer you’ve received, it’s probably the wrong move for you.
What is a counteroffer? There are two possibilities: When you receive an offer from a potential new employer, you may choose to submit a counteroffer. This is essentially an acceptance of parts of the initial offer, while proposing changes to other parts of the initial offer.
The second kind of counteroffer comes from your current employer, who wants to keep you when you tell them you have a new job offer.
Tools for evaluating an initial job offer
Look at the total compensation. This includes salary and benefits, possible bonuses or equity in the company. This is an area that may people will counteroffer on — more base salary.
Does the position put you on a track for advancement? This may or may not be important to you…just make sure you take it into consideration.
Are there additional perks, such as WFH or flexible hours? Just remember — a state-of-the-art rec facility that you never use isn’t a valuable perk TO YOU. Watch out for “shiny object syndrome.”
Counteroffer strategies
Now let’s talk about the counteroffer you may receive from your current employer. Here are some strategies:
Know why you were searching in the first place. Maybe you were approached by a recruiter…there was likely a reason you took her call. Can the issues at your current employer be resolved if you chose to stay?
If your only real concern was your current compensation, then a higher offer may entice you to stay. If, however, you are having issues with your boss and the corporate culture, no amount of extra money will address these kinds of issues.
Determine why your employer made the counteroffer. Is it because of your value to the organization — or so they can have someone in the role until they find a replacement? Do some digging.
Pay attention to the details. There will likely be a higher salary offer from your current employer, and possibly a new job title. What else will change — and do those changes excite you or cause you concern? Will you have some new growth opportunities that leverage your strengths or develop weaker areas?
Weigh the pros and cons. You have an offer from another employer, and a counteroffer from your current employer. What are the benefits of taking the new role? Of staying at your current employer until an even better outside offer comes in? Of accepting a new, higher paying role with your current employer?
Accepting the Counteroffer
If you decide to decline the outside employer and accept the counteroffer from your current employer, your next steps with your current employer should include:
Thanking your boss/others immediately — tell them you accept. Show gratitude for identifying you as a valuable employee.
Set up a meeting with your boss (or new boss) to establish a plan for meeting your new goals and fulfilling your new responsibilities.
Sign your contract to make it official.
One of the cons of accepting a counteroffer from your current employer is that you may be marked as a “short timer,” someone who may soon jump ship. This may mean you will be passed over for the best opportunities or watched more closely than before.
To decline the outside company’s offer
Send them written communication, thanking them for their time and interest in you.
Briefly explain why you decided not to accept the offer.
Keep the door open — let them know you would like to maintain professional ties. Having said that, there is a chance that declining this offer may mean the door will be closed to future employment conversations.
If you decide to accept the outside offer
Stay professional with your current employer — don’t burn bridges
Thank your boss/others for the counteroffer.
Give a brief reason why you said no — you don’t have to give the real reason if you prefer not to.
Send an exit email to your team, thanking them for their support and asking them to stay in touch.
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