Counteroffers are Fool's Gold

Searching for a new career can feel like participating in the Gold Rush. You’re out in the wilderness with hundreds of other prospectors with the same objective. It can take weeks or months of hard work to find what you’re looking for. Then you find it—the vein of precious, glittering, yellowish rock. Your dreams have come true.

Perhaps as you pack up to leave and prepare to say goodbye, the wilderness offers you something new—not a gold mine, but a sparkly counteroffer. Would you accept the new terms or keep on with your riches?

Think of it this way: If you struck gold, would you ever give it up? Of course not. So why would you ever give up the job of your dreams? When you turn in your notice and your boss presents a counteroffer—a pay raise, better benefits, access to a company car, you name it—you may think about accepting it. Don’t. Counteroffers are fool’s gold, and you may be sacrificing months of hard work for a temporary boon.

Counteroffers, like fool’s gold, can be tempting. They resemble a legitimate opportunity for progress but are just as misleading as a chunk of pyrite. Here are a few things to consider if you’re extended a counteroffer from your employer.

Their motives. While your managers may frame their counteroffer as a benefit for you, it’s likely their generosity doesn’t run as deep as you’d like to believe. Counteroffers are used as retention tools to keep employees on board. The fact of the matter is, it costs more to replace you than to give you a raise. Forty-two percent of companies offer a counteroffer because they don’t want to spend the money replacing the employee. It can also take months to replace you and in that time, productivity will likely slip, damaging the business’ bottom line. Essentially, offering you a counteroffer is simply for convenience, not to benefit you.

Possible consequences. Did you know 80 percent of people who accept a counteroffer will voluntarily resign or be let go within 12 months? When you turn in your resignation, the trust you had with your employer is tarnished. Seventy-one percent of senior executives say accepting a counteroffer could cause your superiors within the company to question your loyalty moving forward. You now have a target on your back. You’ve expressed an interest in leaving the company—well, be careful what you wish for. If layoffs are needed to keep your business afloat, you’re likely to be the first one on the list.

Your motives. If there is any possibility that you would consider a counteroffer at the time of resignation, you should talk to your managers in advance of interviewing about issues that are causing you concern. It can be a difficult conversation, but it’s necessary. If you’re wanting a raise, a promotion, or a culture change, ask for it before you decide to start your job search. If management denies your request, then you know where you stand. Leaving is now in your best interest. You are free to pursue other career options knowing when you turn in your resignation, any form of counteroffer is hypocritical. Accepting a counteroffer wouldn’t even put a bandage on the wound so don’t fall prey to the fool’s gold. Look forward to the new opportunity with high expectations for career development, advancement and renewed enthusiasm. You accepted the new position for a reason you should remember that reason when presented with a counteroffer.

Do not let the temptation of fool’s gold distract you from an actual gold mine of a fulfilling insurance career. At The James Allen Companies, we believe in prioritizing career and company growth. Candidates’ best interests are served by objectively selecting the best opportunity, and we can help you see past the temptation counteroffers. We offer the guidance you need to make your career transition smooth. Find out more by contacting us today.