Counter Offer - Lose/lose Proposition

Before accepting a counteroffer from your present employer, consider whether you'll be the winner or the loser in this employment maneuver. Although statistics aren't available, it seems many employees who give notice are receiving counteroffers from their current employer as an enticement to stay. These proposals can include a salary increase; a promotion or added responsibility; a promise of a future raise, promotion or other incentive; or the creation of a new, more appealing reporting structure or organization.

If you are good at what you do and your company is in reasonably sound financial shape, there is a likely chance that when you resign, your employer will try to convince you to stay. Their reasons are obvious: finding and training your replacement will be expensive and time consuming, there may be profit ramifications as a result of the work you performed not getting done, other employees may also be influenced to look for another position if they see someone else making a successful change. Therefore, it is in the company's best interest to convince you to stay.

If you allow yourself to entertain such suggestions, you will be sorely tempted to reverse a decision you have made for the best objective reasons (see Decision Making Strategy) and do what may not be in your best interest.

There are at least three reasons that a counteroffer can be very attractive:

	Your emotions may already be stressed by the thought of leaving friends and co-workers.
	Change brings with it fear and some uncertainty.
	And, your present employer wants you to stay... it can be a great boost to your ego.

If you entertain the counteroffer you will likely succumb to it.

So, what is so bad about getting more money or a big promotion with your present employer versus making a change? As tempting as it may sound, let's explore the ramifications. First, no matter what is said when the counteroffer is extended, you will likely always be considered a fidelity risk. When it comes to critical future assignments, management may not be comfortable depending on you. What effect will that have on your career? Second, once management has solved the immediate problem of your leaving, they can begin contingency planning for your replacement on their timeframe. So you may find yourself suddenly removed from this position which is exactly what you wanted in the first place. However, now you're unemployed with no opportunities in sight because you were no longer looking. Being unemployed and looking for a new position puts you in a much different situation. Third, and this is important to remember, the reasons that resulted in your wanting to leave in the first place have not changed. These conditions have just been made a bit more tolerable in the short term because of the raise, promotion or promises made to keep you. If you let the counteroffer convince you to stay, the same factors that caused you to want to leave will likely have the same effect again in the near future.
Ten reasons not to accept a counteroffer:

The underlying cause of unhappiness will not have changed. Only the money will have improved.

80% of those who accept a counteroffer are fired within six months, having made themselves more expensive through an unwelcome power play.

It will create an indelible "black mark" on the individual's record.

The individual's loyalty will always be in question.

The individual will likely be the first let go in any subsequent layoffs.

Working conditions may greatly worsen.

Only the money increases. Opportunities won't change.

The counteroffer will be based on avoiding an inconvenience and saving money for the company in the short term, not necessarily on the individual's value to the company.

Future career opportunities will likely be drastically reduced.

Management's attitude may harden, thinking "everyone has a price and now we know yours"

The best way to avoid making this mistake is to prevent the counteroffer from happening. If you are confident that you are making the right decision for the right reasons (see Decision Making Strategy ) and you have chosen to accept another position that will help satisfy your objectives, then you should be able to resign stating that your decision is final and irrevocable and that you would appreciate it if the company would respect your decision. If you are not convinced that you have made the right decision then you should not resign. If the company does not respect your request and still attempts to negotiate a counteroffer, you have every right to demand that they cease their pressure tactics.

Making good career decisions is in your best interest; do not let someone else force you into making a bad decision. Counteroffers are poison. Avoid them like the plague!