What is a counter offer and why do they happen?

·         A counter offer is a situation in which you resign and you are offered more money/ another role/ another job title/ a promotion.

·         They happen because it’s cheaper to offer financial incentives to an employee rather than hire someone new. On average, it costs approx £7,000 to refill a role (recruitment costs, cost of time put into interviewing, etc).


Three reasons you could be made a counter offer

·         When a person leaves, it can disrupt and destabilise the team and it can affect the team morale, so the employer may be panicked into making a counter offer.

·         Often someone leaving prompts someone else to leave, which creates an extra £7,000 of problem for the company.

·         A good employee leaving can have an impact on the company’s relationships with their clients if the employee had a direct involvement with them.
Don't walk back into an office you don't feel at home in.

Questions you should ask yourself before taking a counter offer….

·         Often it is a knee-jerk reaction to a situation of panic. We should want to gain progression due to it being deserved, not because we have forced the issue. Is this what you deserve and is this really what you want?

·         Where has this change in role suddenly come from? If it didn’t exist before does it really exist now, or is it just a token gesture to make you stay?

·         Statistics show that the initial pay-rise offered to “keep” you often results in a salary plateaux for the following 18 months on average, financially is staying the right option in the long term?

·         If you were the one who showed a willingness to leave the company, will you be first out of the door if the company hits troubled times and need to make cuts?


How to resign

·         Make your mind up, be certain and resolute, and stick to your decision.

·         Write a resignation letter, keep it as positive as possible and avoid going into a tirade against your employer.

·         Prepare a polite, informative but concise explanation of your pending departure. The more rehearsed this is, the better it will be received.

·         Thank the manager for the opportunity in the first place, don’t forget this is the first they’re hearing of your decision to leave and don’t take their reaction personally.

·         Do not engage with talk of possible role changes, avoid being led into a counter offer.

·         Ask for a leaving date to be confirmed within the day so you are able to prepare for your next role.