Counter offers. What are they? To put it plainly, it is “An offer made in response to another offer.” Like when you are selling a car or a house and the buyer offers a price which you reject. You would then suggest a new price.
In a recruitment setting, it’s when an employer offers a salary increase, a change of responsibilities or even a change of culture to keep a high performing and valuable employee. This is usually made once the employee hands in their notice.
So why do companies counter offer? There are many reasons why but the main ones are:
- Keeping the employee’s knowledge of the company, customers and processes.
- Keeping team and company morale high.
- Avoiding the cost of having to hire and train a replacement.
- Avoiding the need to pass on the extra workload onto the rest of the team.
At Claims Recruitment Services, we make sure all our candidates are aware of the possibility of a counter offer every step of the way. By asking questions like “How would your company react to you leaving?”, “If they were to counter offer you, how would you react?” or “Is there anything your company can do to make you stay?”. We dig into the reasons why the candidate is considering a move and discuss whether more money would solve their problems. More often than not, it won’t!
We do this so that when a counter offer is made, it is expected from the get-go which is then compared, analysed and ultimately rejected!
What are the reasons for rejecting a counter offer? This depends on the candidate’s reasons for considering a move, but some are because:
- They want to leave due to the work culture. No salary increases, extra benefits or a change of responsibilities is worth staying for if they are not happy with the work environment.
- The offer is only a salary increase. Their future career growth is more important than a short-term financial gain.
- They might be considered a “flight risk”. Their intent to resign may create a lack of trust between them and their manager which could mean they might be overlooked for promotions or new opportunities as the manager might think they aren’t fully committed to a long-term career at the company.
- The reason why they have counter offered the candidate is so that the company can avoid the hassle of finding a replacement.
“I’ve got a counter offer, what do I do?”
In most cases, we advise to avoid accepting or rejecting a counter offer right away and instead give yourself time to think it through.
- Speak to your manager and understand the terms of the offer.
Find out why they want to keep you. Is it because you are valued or is it to avoid financial costs? Ask for a day or two to think it over.
- Speak to us about the counter offer.
We have been through this process many times before with other candidates and can give you our professional opinion on what else we need to consider. We will then compare the original offer with the counter offer and we will look at more than just the salary and the benefits. We will discuss “Where can you develop the most?”, “Which company offers more opportunities for your progression?” and “Which company best aligns with your values and has a better culture?”
- Revisit your original reasons for leaving.
Most counter offers include a pay rise but most of the time, it is not the main reason of why you have chosen to consider a move. We will then ask and remind you on why you looked for a new job in the first place and assess whether this counter offer gives you that.
- Listen to your gut feeling.
Your mind picks up on subtle clues, this could be office politics, a lack of opportunity or weak leadership. Your inner voice will consider every little thing and give guidance on what the best thing to do will be.
- Make a decision.
Ultimately, after discussing everything with us, you are the one who knows what’s best for you, your current situation and your future. If you have decided to go for your new role, we are here to guide you and provide advice on how to resign.
A counter offer is not something to be wary of and is most of the time a compliment to the candidates skills and experiences. At Claims Recruitment Services, a counter offer is not a surprise and is something to consider throughout the recruitment process.