Counteroffer – Accept or Not?

After a frustrating period of not getting promoted or raises, you finally decided to look for a new position. You’ve found a great company who offered you a raise and promotion (or track to promotion). How exciting!

Your current company didn’t make it easy on you though. Your boss didn’t accept your resignation and put a counteroffer on the table matching your other offer. Wow! 💰

This is a very common situation and will probably become even more common in 2024 as the CPA and financial talent shortage continues to play out. So, what do you do⁉️

First things first. Let’s distill out the emotion and look at the numbers. Yes – there are actually studies that show what happens in the months following accepted counteroffers. While a counteroffer can be tempting, accepting a counteroffer can be a risky proposition.

Turnover Rates after Counteroffer acceptance:

❗ 80% of counteroffer acceptors leave within a year. (Source: Layoffs.fyi, Bizjournals, LinkedIn)

❗ 50%-80% leave within six months. (Source: National surveys)

❗ 93% leave within 18 months. (Source: Ken Davies, career expert)

Companies very often use counteroffers as a short-term solution to buy time while they search for your replacement. Even if they do keep you, the underlying issues that led you to seek new opportunities are unlikely to be addressed, leading to eventual dissatisfaction and a high chance of leaving anyway.

Why You Should Walk Away:

➡️ Damaged Trust: Resigning demonstrates your desire for change. Accepting a counteroffer can damage trust and negatively impact your relationship with colleagues and superiors.

➡️ Unfulfilled Promises: Counteroffers often offer temporary improvements to retain you, but fail to address root causes of your dissatisfaction.

➡️ Limited Growth: Accepting a counteroffer could stall your career advancement, reducing your chances for promotions and new challenges.

➡️ Focus on Your Future: Instead of a short-term “fix,” prioritize your long-term goals. The new job likely aligns better with your desired career trajectory and offers opportunities for personal and professional growth.

Counteroffers are rarely a genuine commitment to employee development. They are often a short-term reaction to losing a valuable asset. Over the course of 30 years, I’ve seen a couple work out, but most times, I get calls saying “You were right. I shouldn’t have accepted that. Is the other position still open?” 🤦🏻‍♂️

By walking away, you’re investing in your future and opening yourself up to a fresh start and hopefully more fulfilling career possibilities. Don’t fall for the counteroffer trap. Choose the future that aligns with your values and aspirations, not one dictated by desperation or temporary incentives. 💼

#counteroffer #jobsearch #careermove #careervalue #warfortalent