Should I accept a counteroffer from my current employer?

Skills

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Should I Accept A Counteroffer?

What is a counteroffer?
Is it common to receive a counteroffer after resigning?
What should you do if you receive a counteroffer?

Counteroffers can be flattering, emotionally confusing, and may even catch you off guard. However, how you handle the offer can significantly impact how current and future employers perceive you. Our recruiters use their expertise to walk you through the tactics behind counter offers, how to evaluate them, and how to take the next steps.

What is a counteroffer?

A counteroffer is an offer made by your current employer to prevent you from resigning in favour of a new position elsewhere. In most cases, your employer will try to match or exceed a new employer's offer, be that salary, benefits, training and development opportunities, a promotion, upgraded role remit, or several of the above.

As the name suggests, their offer is intended to counter the one a new employer has given you. But, in our experience, counteroffers are usually a reaction, not an effective long-term retention solution.

Is it common to receive a counteroffer after resigning?

Receiving a counteroffer after resignation is relatively common in the current hiring market — salary increases are one of the most popular tools being used by employers to retain talent. Research for the recent Robert Half Salary Guide shows that nearly two in five business leaders are looking to add permanent headcount for the year, and 46% are willing to increase salaries to remain an employer of choice in the skills-poor, tight hiring market.

Aside from your skills and legacy knowledge, your employer may also try to retain you to avoid the time and cost of filling your vacancy. According to CIPD, the median cost of recruiting an employee last year was £1,500 (including labour costs) to fill a vacancy, with a potential hiring lead-time of 4.9 weeks across all industries, and a minimum of one year for onboarding. It's no wonder counteroffers have become a go-to method!

What should you do if you receive a counteroffer?

Take your time

Based on your strength of feeling, it can be tempting to rush in and make a hasty decision that you may later come to regret. Ask for a few days to consider your options and speak to your close family and friends who will have your best interests at heart. You can also draw up a pros and cons list to help you decide.

Should I compare the counteroffer with the new job offer?

It's wise to compare your counteroffer with a new employer's offer. Rather than focusing solely on the salary and benefits, we recommend expanding your comparison to include factors like the potential for career development, cultural fit, value alignment, etc.

Whilst a short-term boost in salary is great, you should be careful not to risk your long-term earning potential.

Consult your recruitment specialist

If you’ve been using a recruiter to aid your job search, tell them about the counteroffer as soon as possible. They’ll likely have gone through this process countless times before and will be well-placed to give you their professional opinion on other aspects you should consider.

It's also worth remembering to regularly research the market value of your skills, experience, and role using something like the Salary Guide or Salary Calculator so counteroffers aren't effective as a surprise tactic.

How can I evaluate if a counteroffer is worth it?

Many counteroffers will involve a pay rise; however, money may not be your main reason for leaving. You may be looking for a better work-life balance, more responsibility, or a non-toxic work environment. As such, ask yourself if the counteroffer addresses your concerns or is simply a quick fix to a broader issue.

There are also other factors to be aware of. For example, it can be incredibly easy to base a decision on the potential guilt of leaving colleagues rather than the excitement of a new opportunity.

Accepting a counteroffer could erode trust with your current employer if you should eventually leave (which is often the case). It also may not look great to future employers, who may see your counteroffer acceptance as a power move or a fickle decision.

Counter the counteroffer

An offer is a negotiation between two parties. Use the opportunity to raise the stakes before accepting a counteroffer if your employer hasn't addressed all your concerns with their new deal. Push back where appropriate to explain where your needs are not met. For example, if you do not feel the counteroffer considers your long-term career progression, ask for a detailed personal development plan.

However, businesses may be unable to make personalised changes to your contracted terms and conditions. For example, if you're looking for remote or flexible working and it's not part of the corporate policies, you may have to look elsewhere.

Should you decline the offer, we recommend keeping things polite and professional to minimise damage to your relationship with your current employer. Thank your employer for making the offer but politely decline, stating your reasons for leaving. Try to frame these positively, focusing more on your hopes, aspirations, and goals, rather than resorting to criticism or blame.

You can finish things on a positive note by reassuring your employer that you'll complete any outstanding work before you leave, prepare handover documents, and help train colleagues to ensure a smooth departure.

Are you ready to find your next career opportunity? Upload your CV or browse open roles today and rely on our experienced recruitment team to guide you through the process—including counteroffers—so you can build your dream career.

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