How Counteroffers Can Put Your Career in Jeopardy: A Legal Perspective

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Summary

Counteroffers can be dangerous for job seekers because they can lead to a decrease in job satisfaction, a decrease in motivation, and a decrease in loyalty to the new employer. When a job seeker is offered a new job, they should always consider the ramifications of turning down a counteroffer from the current employer.

Counteroffers are often made by employers as a way to keep talented employees who feel undervalued. These offers might include higher pay, promotions, or more responsibility. For job seekers, a counteroffer can be tempting. After all, it seems like a great way to stay in the same job and get paid more. But counteroffers can have serious consequences.

When a job seeker accepts a counteroffer, they may be committing themselves to further job dissatisfaction. The new responsibilities and higher pay may seem attractive, but the underlying causes of their job dissatisfaction will remain. They may also experience a decrease in motivation, as the job seeker may view the new employer as unappreciative or unsupportive.

In addition, by accepting a counteroffer, the job seeker may be seen as untrustworthy and disloyal to the new employer. They may be seen as someone who walked away from the job and then changed their mind, which may make them a less desirable employee in the future.

For these reasons, job seekers should consider the long-term effects of counteroffers before making a decision. It's important to remember that counteroffers don't always address the underlying causes of job dissatisfaction, and can lead to further frustration, decreased loyalty, and decreased motivation. It's wise to weigh the costs and benefits of the counteroffer and take things like job satisfaction, job security, and career advancement into consideration before making a decision.
 

The Ever-Rising Job Market and Counteroffers

The 1990s marked a time of unprecedented economic health and this economic boom was reflective in the job market. An ever-increasing number of companies meant more competition for qualified workers. As a result, many employers began to offer counteroffers to entice employees from leaving their job. A counteroffer is an increased salary, bonus, or other benefits presented to an employee in an effort to prevent them from leaving a job. Although counteroffers can be an attractive option, they are often not in the employee's best interest.
 

Understanding Counteroffers

Counteroffers may include an increase in salary, added vacation days, or other benefits in an effort to persuade the employee to remain on staff. Initially, a counteroffer may seem too good to be true. It may even look like the ideal solution to the dilemma of staying with the current employer or finding a better job elsewhere. Unfortunately, it is rarely that simple. Counteroffers can be a sign of a power struggle, where one party is trying to exert more control over the other.

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What to Consider Before Agreeing to a Counteroffer

When presented with a counteroffer, it is important to consider the pros and cons objectively. It is essential to consider the reason why the counteroffer is being made and the goals of the person offering it. In addition, any other changes in the workplace should be considered. If the employee accepts a counteroffer, the relationship with their superior may be strained. It is also important to consider the long-term effects of the counteroffer. It is not uncommon for employees to accept a counteroffer, only to find themselves in the same position a few months later.

Question
I currently am weighing two offers - one from a new firm and one from the firm that I am currently at. I feel like I should be wary of staying with my current firm after I've told them I plan to leave - is that justified?

Answer

H.E. Palmer, a member of the U.S. forces that settled the West in the second half of the 19th Century, is attributed with having said, "Never put down your gun to hug a bear." Where counteroffers from your present employer are concerned, it's the counteroffer that's the bear. When you have an offer from a new employer in hand, that's your gun. Don't put it down once you have shown it. There is no end to the horror stories about accepted counteroffers I've come across in my years as a recruiter.

Our experience with employees and counteroffers has shown that acceptance is often career suicide. Consider the problem in its proper perspective. What really goes through a boss's mind when someone quits? Consider these thoughts:

• "This couldn't happen at a worse time."
  
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• "This is one of my best associates. If I let him quit now, it'll wreak havoc on the morale of the section."
   
• "I'm already short-handed in this section. I don't need another loss right now."
   
• "I'm working as hard as I can, and I don't need to do his work, too."
   
• "If I lose another good associate, my partners might decide to 'lose' me, too."
   
• "Maybe I can keep him on until I find a suitable replacement."
   

What will the boss say to keep you in the nest? Some of these comments are common:

• "I'm really shocked. I thought you were as happy with us as we are with you. Let's discuss it before you make your final decision, because you have a real future here."
   
• "You know, I've been meaning to tell you about the great plans we have for you. But they have been confidential until now."
   
• "The section head has you in mind for some exciting and expanding responsibilities."
   
• "You were behind your peers at your last review but this year we think your prospects of early partnership are really strong."
   
• "You're going to work for whom?"
   

It is important to be realistic in these situations. When an associate quits, it's a direct reflection on the partner he works for and his firm. Unless you're really considered incompetent or a rabble-rouser, the partner you report to might look bad by "allowing" you to go. His gut reaction is to do what has to be done to keep you from leaving until he's ready. That's human nature. Unfortunately, it's also human nature to want to stay with your employer unless your work life is miserable. Career changes create uncertainty, and your natural inclination is to stay with the devil you know rather than to dance with a new one. That's why bosses know they can usually keep you around for awhile by pressing the right buttons.

Before you put down your gun to hug the bear, consider these universal truths:

• Any situation in which an employee is forced to get an outside offer before the present employer will provide salary and working conditions at market level or better is suspect.
   
• No matter what the firm says when making its counteroffer, you'll always be considered a fidelity risk. Having once demonstrated your lack of loyalty (for whatever reason), you'll lose your status as a "team player" and your shot at a place in the inner circle.
   
• Counteroffers are usually nothing more than stall devices to give your employer time to replace you.
   
• Your reasons for wanting to leave still exist. Conditions are just made a bit more tolerable in the short term because of the raise, promotion or promises made to keep you.
   
• Counteroffers are only made in response to a threat to quit. Will you have to solicit an offer and threaten to quit every time you deserve better working conditions?
   

Decent and well-managed law firms and other companies don't ever make counteroffers to employees who come to resign. Instead, they have fair and equitable compensation policies from the beginning. Employers you want to work for won't be subjected to "counteroffer coercion" or what they perceive as blackmail. They will stand pat and use the experience to improve later if they need to.

If you find you have hugged the bear and accepted a counteroffer, enjoy the thrill, but know that you should continue to clean out your desk. You have started down a road to perdition.