The Truth About Counteroffers 

In today's job market, the demand for skilled workers is high, and companies are struggling to retain their top-performing employees. As a result, counteroffers are becoming more common, especially in the construction sector, where the workforce is experiencing talent and workforce shortages.

As recruiters specializing in the construction and engineering industry, we are seeing counteroffers presented to our candidates more frequently — most of them containing a large salary increase. Though these dollar signs are tempting, we never recommend accepting a counteroffer.

Research shows that counteroffers are a temporary solution — it has been proven that 80% of employees leave within 6 months of accepting a counteroffer from their current employer.  What causes employees to leave so shortly after accepting a counteroffer? There are many reasons for this.

The Harsh Reality of Counteroffers

Accepting a counteroffer after revealing your intention to leave might cause your employer and colleagues to question your loyalty and satisfaction levels, impacting your future. Your promotions will now be limited. Management and colleagues will begrudgingly view you as ‘not one of us’ because you were previously committed to leaving. Your decision to stay at the company was incentivized with a higher salary, which will lead to resentment and tension within your team, creating an environment that is impossible to thrive in. It is this negative work environment, as well as other factors, that leads 80% of professionals to resign within 6 months of accepting a counteroffer.

Another reason people leave after accepting a counteroffer is because the feelings that led them to explore other opportunities are likely to continue.  Chances are money was not the only reason you began searching for a different job in the first place. A higher paycheque is tempting, but it won’t change the way you feel within your current position, which will inevitably lead to you restarting your job search. And you'll be one of the lucky ones if you begin this job search by choice.

Though most professionals will choose to resume their job search months after accepting a counteroffer, others will be forced to search for new employment. Sometimes a counteroffer is designed to give your current employer more time to find a suitable replacement for you.  Employers will offer high pay raises to retain you, knowing it is only temporary. This is undoubtedly a harsh and less common business tactic, but one you should be aware of when making your decision.

While a salary increase may leave you feeling excited and valued, it’s important to ask yourself why it took you resigning to receive the compensation that you deserve — especially if it is in the budget. If you were truly valued, your employer should have recognized and rewarded your contributions with fair pay before you handed in your notice.

Overall, the harsh reality of counteroffers is — accepting a counteroffer will likely be a temporary solution for both parties. While some employers may present counteroffers with good intentions, it is important to remember that counteroffers are not all that they're made out to be when making a decision that will have such a significant impact on your future. They result in stagnant growth and resentment.

Other Factors to Consider

When considering a counteroffer, it's important to take the time to evaluate all aspects of the new company and the potential role you're considering. Dollar signs are captivating, but according to data conducted by Glassdoor, the top predictor of workplace satisfaction is not pay, but the culture and values of the organization, followed closely by the quality of senior leadership and the career opportunities at the company.

A study conducted by Princeton University researchers proved that having a higher income increases happiness, but only up to around $75,000 annually. Beyond that, other factors have a greater impact on happiness. Here are some other factors aside from financials to consider when reviewing a counteroffer:

• Role & Responsibilities
• Growth Opportunities
• Flexibility
• Travel Requirements
• Location / Commute to work
• Company Culture
• Work Relationships
• Work-life balance
• Benefits
• Vacation time

Taking the time to evaluate all these factors will help you make a well-informed decision.

How to Navigate a Counteroffer

Navigating a counteroffer can be nerve-racking, but with a well-thought-out approach, you can make the best decision for your career. It's important to slow down and develop a clear vision of what you want before deciding on the next steps.

It's crucial to reflect on your reasons for seeking a new job in the first place and consider the research and factors discussed above. Ensure you are making a logical decision, not an emotional one. Ask yourself if the fear of change is what has you considering the counteroffer? If it is, trust that the anxiety that comes with changing careers will disappear shortly and will be replaced with excitement. Use self-awareness, stick to your guns, and make your decision.  You deserve to feel happy and satisfied in your career.

Your career is where you spend a large majority of your time. It’s important to feel pulled towards a mission and be happy with the challenges in your position. If you’re just showing up to work every day for a paycheque and have no spiritual connection to your goal, you will burn out.

Remember, you’re building your career, not just working a job. And we’re here to help you navigate during challenging times.

At The Pederson Group, we get that making a big career change can be a daunting task. That's why we're here to provide you with the support and guidance you need to make informed decisions during the hiring process. We want you to feel confident and empowered as you navigate this chapter in your career.