Is It Ever A Good
Idea To Accept A Counteroffer?
Karen Young Kreeger
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Should you stay or should you go? Wouldn't it
be nice if all questions like these came with
lifelines?
Employees receive counteroffers in two ways,
notes Gary Cluff, a recruiting strategist and
consultant, and principal of Reston, Va.-based
Cluff
& Associates. The employee who gets recruited
away gives notice, and the current company responds
by issuing a counteroffer unexpectedly. On the
other hand, an employee could be testing the water
externally with the hopes of getting some offers
to come back and negotiate for a counteroffer.
The second scenario, he says, is frowned upon
because if the current employer recognizes what
is happening, that employee's place at the current
company may be at risk.
Counteroffers primarily take the form of more
money and possibly a promotion, says Barbara Bruno,
president of H&R
Search, a search firm based in Chicago. For
example, whatever the employee's next raise and
title would be, that's what the counteroffer could
be. "The funny thing that happens--and the
reason that it's negative to take a counteroffer--is
that most people don't leave their company because
of money," she says.
Taking a counteroffer can also send the wrong
message to future employers. Ten years ago if
an employee had more than three positions in ten
years, Bruno's clients would not interview them,
considering them job-hoppers. Currently if she
presents a candidate who had been with the same
firm for 10 years to a client company, that hiring
company would react by asking, 'What's wrong with
them? They've never taken a risk.'
"It's totally flipped now," says Bruno
of the perception of job stability by hiring companies.
By her estimation, employees are changing jobs
every two-and-a-half to three years. What's more,
companies expect that, especially at higher levels.
It's Not About the Money
If you're contemplating taking the counteroffer
by your current employer, experts agree that you
should ask yourself: Why did I begin to look in
the first place? Analyze whether the counteroffer
really fixes any of the issues or problems that
prompted your search or your serious consideration
of a new position.
James Burke, who recently retired as the manager
of technical recruiting at Rohm & Haas and
presents career workshops for the American Chemical
Society, suggests that employees considering counteroffers
also ask themselves some questions about their
current employer: Where's this company going?
What's in the product pipeline? What are my feelings
about the future of the company? After an honest
assessment of these issues, he advises that if
the employee has a trusted mentor inside the company
who's not their supervisor, have a long talk with
this person to hash out your concerns out loud.
In Bruno's experience employees might take a
counteroffer because the increased salary intrigues
them, but she has found that there's always something
else going on that would make the employee go
through the stress of changing jobs. Some of the
reasons that people cite to her for seeking greener
pastures include the current company doesn't keep
up with technology; upper management doesn't interact
with the rank and file enough; and the lack of
a 'real challenge.'
If an employee takes a counteroffer, Bruno sees
two scenarios emerging: the company now knows
the employee's been interviewing elsewhere, so
when it comes for future promotions and raises
that usually doesn't happen. And, the candidate
now asks him or herself: 'If I were worth this
raise, why did I have to threaten to quit to get
what I was worth in the beginning?' Which in turn
makes the employee realize that their initial
reasons for the search weren't probably about
money.
But to Burke the question of loyalty and showing
your hand in negotiating a counteroffer is passé.
Companies, especially larger ones, due to repeated
downsizing, will be looking out for their own
interests no matter what happens to the individual
employee. "And employees seem to understand
that," he notes.
In presenting a counteroffer, the motivation
behind some companies is that they have been remiss
in managing employee retention. "The company
making the counteroffer is very often trying to
create a temporary stopgap to the loss of an individual,
hoping that they can find someone to replace him
or her in the near future," says Cluff.
If you do take the counteroffer, however, Burke
advises that it should come back in writing. "It
should be basically an offer letter," he
says.
Other Considerations
The art of negotiating a counteroffer can be tricky.
Here are some pointers:
- The length of time needed before getting back
to the offering employer depends on the urgency
of the job. "I think if they really respect
you, you can negotiate more time. They have
an urgent need to fill the job, but you also
have an urgent need to make sure for them and
for you that you are the right person,"
says Burke.
- Research the salary range and responsibilities
of the new position before telling your supervisor
about the new offer. Make sure the new company
has a good financial position and a product
line that will keep it in business. Additionally,
ask if the new company is likely to be acquired,
in which case you might be out of a job sooner
than you think.
- Don't 'nickel and dime' during the negotiations.
Be prepared with what you will accept before
going into your meetings.
- Noncompete agreements can come into play when
taking another job. These allow for assurances,
generally in writing, that the area in which
the employee will be working for the competitor
will be outside what the person was doing at
the current employer. This holds true for about
two years.
Dealing on a Good Note
You can't demand a counteroffer. And, don't put
your boss on the defensive. If you go in with
a set of demands, the chances are they'll turn
you down. When talking with your boss about a
counteroffer, be forthright but fair, explaining
calmly and honestly why you are job seeking in
the first place. One possible approach: "I'm
sharing this with you because I respect you. What
do you think? Is there something that can be done
internally? Or is the best thing for me to do
is leave?"
"Don't ever burn your bridges," adds
Cluff. "If you get an offer that you just
can't refuse, and you do get a counteroffer, the
person should be prepared to respond in such a
way that if the new opportunity doesn't work out
there's always the possibility of coming back."
He says that an employee could say something like
this in an exit interview or other appropriate
setting: "This is an opportunity I can't
refuse. I like the people here. I like the job.
I know I'm taking a little risk, but I would like
to think that I have a good relationship here,
and if it doesn't pan out to be all I expect it
to be, perhaps we can talk about getting reconnected
someday." Try to keep the door open on behalf
of both parties.
No matter what you decide about taking a counteroffer
or not, Burke suggests that all jobseekers should
take a five-year career outlook, asking themselves,
"Where will it lead?"
Karen Young Kreeger is a freelance science writer
based in Ridley Park, PA.
Related Sites:
The 2001
Randstad North American Employee Review
reports the results of a survey of over 2,600
Americans and Canadians, ages 18 to 65, to learn
what they want from their work experience.
From CareerJournal.com: Why
Counteroffers Are Lose-Lose Propositions.
Should
You Accept Your Employer's Counteroffer?
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