10 Reasons Not To Accept a Counter Offer When Resigning
From time to time, an employee may feel dissatisfied with his or her job and may want to leave the organisation in search of greener pastures. Quite often when such an employee tenders their resignation, the employers may make counter offers with salary increase, role change, or even a promotion, in order to retain them. Now, what do you do when you receive such a counter offer? Should you stay the course and leave your employer, or should you change your mind and stay on?
For the reasons listed below, most career advisors will agree that it is never a good idea to accept a counter offer:
You have now made your employer aware that you are unhappy. From this day on, your loyalty will always be in question.
When promotion time comes around, your employer will remember who ‘was loyal' and who ‘wasn't'. And when times are tough, your employer will begin the cutbacks, possibly with you.
Where is the money from the counter offer coming from? Is it your next raise delivered early? Most companies have strict salary guidelines that must be followed and usually it's a future payrise that is delivered early to retain you.
The same circumstances, which now cause you to consider a change, will still remain, long after the novelty of extra income has worn off. Statistics show that 80% of people who accept a counter offer, leave voluntarily in 6 months or are let go within a year.
Once the word gets out, the relationship that you now enjoy with your co-workers will never be the same. You will lose the personal satisfaction of peer group acceptance.
What type of company do you work for if you have to threaten to resign before they provide you with what you are worth?
Greater expectations will be placed upon you as a result of your new pay structure or role. Targets, workloads and commitment (like forfeiting holidays) will be expected.
Consider the cost per hire to find someone to replace you, include any training, set up costs, revenue generation time, and hiring fees. It's not so flattering when you realise that you are the cheaper option to a replacement hire.
Who is the boss considering when he makes you a counter offer, is it you? Or is it him/her and the difficulties they will encounter in replacing you?
The Singapore marketplace is fairly small and people have long memories. By accepting a counter offer, you will burn bridges with potential future employers.
Deepali Chaturvedi is Head of South-east Asia at Reed Recruitment Specialist (https://www.reedglobal.com.sg/) , leading a team of consultants and researchers across six divisions in one of the largest private recruitment and HR services company in the world. She first set up the Reed Singapore office from scratch in 2008 and has over 16 years of experience with leading international recruitment firms within the Asia Pacific market wherein she has set up and managed multi-specialism operations.
