Depending on who you ask, statistics quote anywhere between 50-80% of employees leaving their company within a year of accepting a counteroffer. There are also people who are unsure of this statistic, wondering if it is just a number recruiters use to make their case stronger.
Consider though that when navigating the dynamics of a counteroffer after you have already made the decision to leave, things can get complex and emotionally charged. Certainly not the easiest environment to make logical, informed decisions. People tend to forget the underlying reasons why they wanted to leave in the first place. This phenomenon is what we call cognitive dissonance. This is a psychological term for the discomfort experienced when holding conflicting beliefs or attitudes.
In the context of job offers and counteroffers, people often experience cognitive dissonance when faced with the decision to leave a familiar environment for something new and uncertain. The counteroffer can provide temporary relief from this discomfort by addressing some of the initial concerns (like salary or job title) without requiring you to actually leave the company. It is not long before the temporary relief wears off and this is why the statistics are so high.
For those who accept the counteroffer and then depart shortly after, it’s reasonable to assume they regretted their initial decision. This can happen to anyone, and there’s no shame in making mistakes under pressure.
However, these “sliding door” moments can lead to vastly different career paths.
While it’s impossible to predict the future with certainty, we can assess factors that might influence your decision to accept a counteroffer. Let’s start breaking things down.
Understanding Your Reasons for Leaving
This is your ‘Why’. This should be the foundation where you can re-center your decision-making amidst all the moving pieces. Before considering a counteroffer, reflect on why you wanted to leave in the first place. Common reasons for seeking new opportunities include:
- Inadequate compensation
- Lack of career advancement
- Poor work-life balance
- Toxic work environment
- The desire for new challenges
- Misalignment with company culture or values
Now let’s pair that with the common reasons professionals would accept counteroffers:
Financial Incentives
- Increased salary
- Bonuses or equity
Job Security & Relationship-Based Reasons
- Strong relationships
- Comfortable work environment
- Fear of the unknown & long tenure
Career Progression Promises
- Promotion or new role
- Increased responsibilities
While these factors can be appealing, it’s essential to evaluate their true value.
Financial Incentives
The most important question to ask is why your value was not recognized before your resignation. Is it due to management undervaluing you for as long as they could before the reality of losing you set in? Is it due to your increase in compensation realistically not being sustainable for them in the long term?
- If the former, it points to a serious cultural issue within the company regarding employee valuation and retention.
- If the latter, it suggests a potential financial instability or mismanagement of resources.
In both cases, there are red flags. One is a deep cultural issue, the other a business-model issue.
As well, a natural increase in salary due to strong performance is a cause for celebration as it is merit-based. To have to resign in order to receive this recognition takes that away from you. A raise instigated through resignation instead of merit is not something to look back fondly on through no fault of your own.
Career Progression Promises
Again, ask why this was not recognized before you had to resign. Usually, it is one of two reasons;
- They wanted to prioritize maximizing your worth to the company in a specific role instead of prioritizing your growth
- There are very limited upward growth opportunities in the company in general, and they have to now proactively shuffle things around to facilitate your growth
For the first point, this is a clear red flag;
- This highlights a potential lack of proactive talent management and career development within the company.
- It implies that the company might be reactive rather than proactive in addressing employee needs and aspirations.
- This could indicate a systemic bottom-line over employee issues with recognizing and rewarding high-performing employees.
The second point is more complex. At face value, it looks like a strong indication of them recognizing your worth and are now doing everything they can to keep you. However, it shows a lack of long-term growth potential within the company. It also creates the real potential for unrest. When other people’s roles are compromised to keep one employee satisfied, internal politics and rumors start materializing. Consider that;
- This counteroffer might be a short-term solution to a long-term problem.
- It could create resentment and division among colleagues.
- This approach could damage the company’s overall morale and productivity.
It is unfair for your promotion to be seen as a byproduct of you resigning – not through your own merit. It is unfair for you to look back on your promotion in such light. Your company should have done better sooner, or understand that you’ve just outgrown it and it is in your best interest to move on.
Job Security & Relation-Based Reasons
While strong relationships with colleagues and a comfortable work environment can be appealing, relying on these factors to accept a counteroffer might be the most shaky of them all. Here’s why:
- Short-lived relationships: Even the closest work friendships can change over time. New opportunities might foster new, equally rewarding connections. It’s common for people to decide to stay at a company because of a close colleague or manager, only to find that person leaves shortly after.
- Dependency: Relying too heavily on existing relationships can make it difficult to adapt to change or take risks moving forward.
- False sense of security: Strong bonds with colleagues shouldn’t overshadow the need for career progression and personal satisfaction.
- Limited perspective: Remaining in the same environment can limit your exposure to different work cultures, perspectives, and approaches. This will, in the long term, limit your chances of other opportunities due to the lack of growth.
- Missed opportunities: By prioritizing job security, you are sacrificing new opportunities that will give you growth advancement, higher salaries, and better work-life balance. This is the essence of giving in to your fears.
The Bigger Picture
Some people successfully accept counteroffers and remain at their companies. Often, their initial job search was driven by ambition, not dissatisfaction. After exploring external options, they realized their current company offered the best path forward.
Ultimately, the decision to accept or decline a counteroffer is a deeply personal one. While financial incentives, job security, and strong relationships can be tempting, it’s crucial to remember the underlying reasons that prompted your job search.
Statistics overwhelmingly indicate that accepting a counteroffer is a risky gamble. By prioritizing your “why” and carefully considering the potential long-term consequences, you can make a more informed and confident decision about your career path.
Remember, your career is a journey, and sometimes the most rewarding paths involve taking calculated risks.
To learn more about making informed career decisions, check out our article “Balancing Multiple Job Offers: What to Look for Besides Salary.“