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Guest Comment: how to cope with a counter offer
27 July 2009
In times of cost control and restructuring, it’s easy to lose sight of the fact that banks still rely on critical individuals at all levels in order to operate on a daily basis.
Although there are certainly fewer jobs around in the market than a year ago, the competition is still just as fierce to both sign up and retain the top talent out there.
More recently, with signs of green shoots appearing after the Armageddon Q1 job market, there seems to be an increase in banks fighting tooth and nail to stop their high performers from joining competitors.
Good candidates will therefore generally get counter offered by their employer. What are the pros and cons of accepting a counter offer and how should the whole situation be dealt with to keep everyone happy? Here is an easy guide…
Step 1: Accept the inevitable
You have just had "the chat" with your boss. It involves you handing her a letter enclosed in a white envelope, thanking her for your time in the firm, but stating that you are exploring a new opportunity.
However, unless your department was being dissolved, or your name was a non-performers list, it's quite unlikely at this stage that your boss will present you with a warm handshake, a new watch and 'all the best'. She has most probably turned white with fear and gone into panic mode about succession plan and a whole host of other things. Number one priority for her now is trying to keep you.
Step 2: Remember why you are resigning
There is a reason why you are sitting having this conversation. Even if you didn’t go looking for it and were headhunted for a new role, job offers are not like lottery wins. They don't just arrive in the post.
Before agreeing to join a new firm and signing a contract we have to assume that you have attended several rounds of interviews, examined the possibilities of the new role, the firm and the stakeholders involved. At some point you probably should have recognised that all is not perfect in your current role - be it money, career progression, direction of the firm etc.
Step 3: It's not just about the money
Along with asking about the reasons behind your departure and details of your new role, it’s also likely that your current boss will want to know how much you’re getting paid and what he can offer you to stay. This is a very easy problem to address from your employer's side. You are leaving because your new role pays X per cent more, so if he pays you Y per cent, you will stay.
But people rarely decide to move just for the money. Along with the prospects in your new role, chances are that one of the other reasons mentioned in step 2 has led to some frustration in your current job.
Try to be honest to your boss about these reasons (as tactfully as possible). If it was just about the money, a serious talk during your last review about your pay problem is far more effective than looking for a new role. Try not to start a bidding war between all parties.
Final thoughts
Counter offers can be tricky affairs and it's easy to burn bridges on both sides if they are not handled with care. Think carefully before you sign on the dotted line to accept a new role, be clear in your mind on why you are leaving and where you are going. It’s a fact that a large proportion of candidates who decide to stay on will end up job searching again within a short period of time.
If you change your mind and stay, keep the communication open on all sides and try to make your decision quickly. Letting the new firm down at the last moment can cause a lot of unnecessary trouble.
James Carss is director of banking and financial services at Hudson in Hong Kong.
Have you been counter offered recently? Tell us about it below.
Never take a counter-offer. The minute you handed in your letter the minute the manager has decided that you stabbed him/her in the back and are ungrateful for all the time and money they put into you. They may sound grateful if you consider staying but your relationship will never be the same. You can't be trusted and will not factor in long term plans. You are there until he/she can replace you with someone more dependable.
Petty M 28 Jul 2009
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