When you hand in your notice, your company may well be disappointed – and not just because you were a super-star employee. It’s a real pain to hire someone new (and that’s coming from a recruiter who’s done it for 18 years!). It costs money – whether by paying for job adverts, referral fees or a very hefty recruitment agency (typically 20-25% of the hire’s basic salary). Not to mention the internal recruiter’s salary – and the more replacement hires a company needs to make, the more internal recruiters they need. It’s time-consuming. It takes hiring managers and interviewers away from a potentially revenue-generating day job to review CVs and interview candidates. Once a new hire starts, training and upskilling them costs time and money. It typically takes someone six months to ‘learn’ a job and start working at full throttle. Conservative estimates put the cost of recruiting and training a new hire at circa £30,000.
So you can see why not many companies relish the prospect of making replacement hires (growth hires often invoke a different mindset).
In many instances, it is easier, cheaper, and less hassle to counter offer someone to encourage them to stay in their job.
But what’s a counter offer?
So, what is a counter offer? It’s when you hand in your notice, and your employer suddenly finds extra cash to persuade you to stay. But unless they’re throwing an extra £30,000 your way, it’s often more beneficial for them than you…
And here’s the kicker – many of those (80% to be exact) who accept a counter offer find it doesn’t solve the reasons they wanted to leave in the first place – and they’re back on the jobs market in 6 months. A staggering 90% of those who accept a counter offer are in a new job in 12 months.
But in the instance of balance, here are some reasons why a counter offer may be a good idea:
– It’s easier – you get to stay in a job you know (and are good at) alongside familiar faces. There’s no learning curve; you don’t have to prove yourself to your Manager (although they may view you suspiciously as a flight risk from here on out).
– You’re paid more for doing the same job you were before – so if the only reason you were looking was to get a pay rise, then congratulations, you’ve now got one!
– You discover you’re pregnant, and if you move employers, you won’t qualify for their enhanced maternity pay.
But a counter offer doesn’t:
– Remove a glass ceiling.
– Solve a long commute.
– Get rid of annoying colleagues who drive you up the wall.
So if you get a counter offer, remember why they’ve offered it – not necessarily because they love you and think you are fan-flippin’-tastic (sorry to burst your bubble) – but to save them the pain and costs of rehiring. And if you want to leave a job because of any of the reasons I’ve listed above, however tempting the extra money might be, it won’t make the issues miraculously disappear.
And remember, if they thought that much of you in the first place, they wouldn’t have waited for you to hand in your notice to open their wallets!
But hey—it’s your call. It’s your career—and you know you, your job, your team, and your circumstances better than anyone. So ultimately, you’ve got to weigh up the pros and cons, think about exactly why you wanted to leave your old job in the first place and do what’s right for you. Remember—it’s your career and YOUR journey.
And if you want to hand in your notice but don’t know where to start, read my blog post, How to Write a Good Resignation Letter, here.
Blog Summary:
The Cost of Hiring: Companies find replacing employees expensive, with costs potentially reaching £30,000, factoring in advertising, hiring, and training. This makes counteroffers a cost-effective strategy for retaining staff.
What is a Counter Offer? When you hand in your notice, a counteroffer may come your way, offering more money or benefits to stay. However, these are often more about the company’s convenience than your career growth.
How Effective are Counter Offers? The majority of people who accept counteroffers (around 80%) start job-hunting again within six months, indicating these offers rarely address the root causes of wanting to leave.
When Should You Consider a Counter Offer? Counter offers might appeal if they directly address your main issue, such as salary. However, they won’t change fundamental problems like career progression limits, commute issues, or workplace dynamics.
Why Were You Looking for a New Job? Reflect on why you wanted to leave in the first place. A counter offer can seem tempting, but it’s crucial to consider if it truly resolves your reasons for wanting to move on.
Your Career, Your Decision: Ultimately, whether to accept a counteroffer should align with your career goals and personal satisfaction. It’s a personal decision based on a thorough evaluation of how it impacts your professional journey.