What are they?
A counter offer sometimes happens when you tell your current company that you are leaving for a better opportunity. Your current employer panics and immediately offers you a raise and/or increased responsibility if you stay with the company.
Reasons companies extend a counter offer:
Top reasons why you should not accept one:
- Department morale suffers when people leave.
- Employee resignations do not look good on a manager's record.
- It is cheaper to give you a raise than it would be to recruit a new employee.
- They can give you a raise and have you stay while they search for your replacement.
- The projects you are working on will suffer delays because of your departure.
- Companies want to have a low turnover rate.
- Companies do not want sensitive or confidential information going to a competitor.
- Companies do not want skilled professionals going to competitors.
- You had to threaten to leave in order to receive the rewards and career path you have earned.
- 80% of all employees who accept a counteroffer are no longer with the employer after 1 year.
- The same circumstances that now cause you to consider a change will repeat themselves in the future; even if you accept a counteroffer.
- You will be signing up again to spend 8 hours plus a day at a company that you were trying to leave.
- Aside from money, your original reasons for leaving your job will still be present after accepting a counter offer.
- The money extended to you in the counter offer often comes out of your next raise or bonus. Companies usually have strict guidelines about salary increases and promotions.
- You will not be considered a loyal employee from here on out; therefore, you will not be included in the inner circle.
- When promotion time comes around, managers remember who has tried to leave the company already, and who is likely to be there for years to come.
- If the company hits rough waters, you will be the first to be let go.
- Often, when you accept a counter offer, your manager will already be looking for your replacement.
- Statistically, four out of five employees who accept a company's counter offer end up leaving that company within 6 to 9 months anyway.
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