Negotiations Training

When to Truly Walk Away:
Why Negotiating Counteroffers is Dangerous

Gary's current employer has been relatively good to him. Over the past seven years, he's done quite well but just never truly felt fulfilled in his position. While others in similar positions moved ahead, Gary felt like he was in a rut. During a recent business conference, he ran across an old colleague who told him about his company. A five minute chat eventually turned into three interviews and a very attractive job offer that Gary decided was too good to pass up. After some thought, Gary accepted the position and decided to talk to his boss about his resignation.

Gary: "...and that's why I felt like I couldn't pass up this opportunity. I've been really happy here but I think this will be a good move for me."

Karrie: "Gary, we don't want to lose you. You've done so much for us that we would hate to see you go. I would be willing to promote you to a Director-level position and increase your compensation plan by 40% if you'll tear up the other company's offer letter."

Gary: "A Director-level position at 40%!?"

Gary has just found himself in a common position - his current employer provided a counteroffer to keep him on board. For Gary, this seems like a great situation. He can either move on to his new position where he is excited about his new role or he can stay comfortable in your current company with a new title and a hefty raise. Sounds like a great spot to be in, right?

The reality is that counteroffers should generally be avoided as the ensuing results are not as attractive as many perceive them to be. Consider the downsides of accepting a counteroffer and staying with your existing employer.

To begin with, you may have burned a very valuable bridge with a company who really wanted you to be part of their team. Word gets around and those who accept offers and then back out are not held in the highest regard. The reality is that once you accept the counteroffer, things are really never the same with your old employer. The level of trust is no longer there and the employer may have chosen to retain you just to get rid of you later. Imagine that six months after your promotion, your employer decides to send you packing? Remember that bridge you torched six months earlier. It sure would have come in handy at a time like this.

Even if your old employer decides to keep you (with a certain level of distrust that may not have been there before), many employees who accept counteroffers end up leaving six to twelve months later. The clock starts ticking when the counteroffer is accepted. Others in the company may also look at the individual as having blackmailed their company. While these transactions are normally kept under wraps, word always gets out. Chances are that the employee had told a few confidants that he or she was leaving. Once they decide to stay, the whispers start working their way down the halls.

Ultimately, counteroffers should not be negotiated. Rather than trying to work out a deal, the best course of action is go through on your resignation and move on to your new job.