The practice of counteroffers has been used for years as a tactic to retain employees of high value, but the reality is that it often backfires on both the employee and their company. There is a misconception among many employees that receiving a counteroffer from their employer may result in an opportunity to strengthen their negotiating abilities, or even just to learn more about the other side’s desire to retain your services. Employers that offer counteroffers usually do not conduct an analysis of the costs and the returns. They often make decisions based on emotion and not sound judgment which can lead to a harder transition for both parties.
Counteroffers are risky. Not only do they put strain on your relationship with the company, but they can also leave you unemployed in short order if accepted. They can be a temptation for both parties: companies want to keep great employees and employees want to stay in exciting jobs where they feel appreciated. However, there are several risks involved with counter offers that organizations should consider before offering them.
Your loyalty will be questioned when accepting a counteroffer from a company you’ve already agreed not to work for anymore. If you accept this second offer and then leave shortly after, it proves that your first decision was not made from loyalty or commitment; instead, it was made due to something else – possibly money or title? This could damage the trust between an organization and its employees as well as set a bad example for other workers who see one person get rewarded for being disloyal while others aren’t even given an opportunity to “do better” at their current jobs before moving on elsewhere.”
If you are presented with a counteroffer by your current employer, it can be tempting to accept. But make sure you know what you’re in for before accepting a counteroffer. Statistics show, 80% of people that accept counteroffers leave within 6 months. Is this something you would want to do? Is this something that is going to work for your business as well? Is having to go through such lengths with your current company to get what you want really what you want out of life? These are important factors to consider when faced with a counteroffer because many times emotions can be escalated causing us to lose sight on what is important.
