Job Tips: Should You Ever Accept A Counteroffer?

Wilma is a third year associate working for Flintstone and Associates. She is not necessarily unhappy with her job, but feels she is underpaid. Accordingly, she starts applying for other jobs and gets an offer from Rubble & Slate LLP. The new job has the raise she wanted and has all the same benefits and job requirements. When she gives Mr. Flintstone her notice, he offers to match the offer from Rubble & Slate, but needs her decision by the end of the day. What do you think she should do? Is it ever a smart idea to accept a counteroffer?

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Anonymous
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Anonymous
April 11, 2013 3:52 pm

I once read that 75% of people who accept a counteroffer to stay at their current position end up leaving within 6 months anyway. Take that for what it's worth.

Anonymous
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Anonymous
April 11, 2013 4:40 pm

I agree with the comment above. I think everyone sees you as not committed once you put in your notice, and work becomes miserable.

Anonymous
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Anonymous
April 11, 2013 5:05 pm

But isn't it usually better to pick the evil you know over the evil you don't?

If someone makes you a counteroffer, why would they do that if they see you as uncommitted? I think you have to really give it some thought.

Anonymous
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Anonymous
April 11, 2013 5:15 pm

In my opinion, it is poor form for an employer to offer an employee more money to stay after the employee gives notice. After all, where was "the love" before the notice was given. If the employer now values the employee enough to give a raise, then that means the employer was being a cheapskate and was refusing to pay the employee what the employee is worth.

From an employer perspective, opening up a bidding war is dangerous territory. Word inevitably gets out that so and so was going to leave, but the boss offered her/him more money to stay. That only leads to tension in the workplace, and employees now know that it is worthwhile to test the waters to see if they can get a raise to stay.

Finally, if an employee accepts an offer and then backs out of the acceptance when their current employer gives them a raise to stay, it can haunt the employee down the road, both with their current employer as referenced above, as well as with the prospective employer who extended the offer.

Anonymous
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Anonymous
April 11, 2013 5:33 pm

From an employer perspective, you also don't know if the employee is just bluffing. In this example, we don't know if Wilma told her employer who the other offer was from, but that information could be a reason for counteroffering. Perhaps it is the competition or there is a personal vendetta.

Anonymous
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Anonymous
April 11, 2013 8:18 pm

@10:15- Where was the "Love"? In the hypothetical, Wilma is a third year associate who never told Flintstone that she "feels she is underpaid." Flintstone is supposed to chase her around in fear that her unexpressed thoughts might include feelings of being underpaid. Flintstone doesnt know that she is on Job EHarmony looking for a divorce.

With that being said, she should not accept the Counteroffer. The hypothetical states that she is giving notice, which presumably means that she accepted Rubble's offer. If you accepted the offer and back out, word is going to get out that you are a waste of time to interview and extremely flaky. If she made a commitment to Rubble, she should live up to it.

Anonymous
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Anonymous
April 11, 2013 8:46 pm

figured the Shark Pimp would be all over this hypo

Anonymous
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Anonymous
April 11, 2013 8:49 pm

@1:18 — It is not an issue of whether Flintstone knows Wilma feels she is being underpaid, nor is it an issue of Wilma thinking that she is worth more than what Flintstone thinks she is worth.

The point is that if Flintstone is willing to now offer Wilma more money only after she gives notice, then that means he feels she is worth more than he has been paying her up until now. Thus, why was Flintstone not paying Wilma what Flintsone thinks she is worth?

Anonymous
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Anonymous
April 11, 2013 8:51 pm

Shark Pimp sez — No Wilma, absolutely do not accept counteroffer, because if you do I do not get my fee from the employer who offered you the job.

Anonymous
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Anonymous
April 11, 2013 9:19 pm

A lot of Jordan Ross hate today. I guess it comes with the territory.

Anonymous
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Anonymous
April 11, 2013 10:32 pm

Jordan,

Miss you man, you are the best. Don't let the trolls on this blog get you down.

Warmest personal regards,

Johnny Bonaventura

P.S. Can I send you my resume for a Deputy Constable position?

Anonymous
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Anonymous
April 12, 2013 12:15 am

SHARK PIMP IS A TROLL TOO. Plus, any employer (Pimp) who would hire Michael McDonald shows incredible poor judgement. The man has almost zero credibility.

Anonymous
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Anonymous
April 12, 2013 2:21 am

Oh wow, I did not know that McDonald was working for Shark Pimp. Ha hah hah haahhhhh!!

Anonymous
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Anonymous
April 12, 2013 8:30 pm

@1:49– To answer your question "why was Flintstone not paying Wilma what Flintsone thinks she is worth": I have never met an employer that is looking to pay an employee the maximum salary that they believe an employee is worth any more than I routinely find people paying triple the menu price for food because they think the food is so excellent. I dont believe an employer/purchaser of a product or service is a cheapskate if they pay what the asking price is and has been (and nothing more).

People and organizations pay the least amount that they can pay and still feel comfortable that they will secure the product or service. Sometimes employers err and lose an employee. However the lines of communication pre-acceptance of another offer run both ways. If Wilma approached Flintstone and stated "I have an offer for more, have not accepted it and want to stay, but need it matched," the parties could have a dialogue. However Wilma's conduct in passive aggressively secretly soliciting other offers (while apparently not having teh same respect for her current employer and conveying the same expectations and availability) is disappointing to any employer.

Anonymous
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Anonymous
April 13, 2013 3:04 am

As an employer, I can say that when an emplyee of mine has done that in the past, which has only happened a few times, more often that not, I have told the person to take the other offer since otherwise it sets the wrong precedent. One of my paralegals was offered $3,000 more and tried to do that. She was just an okay employee, so I told her to go ahead and leave because I don't play that game.

I pay above market salaries, and I expect employees to show some loyalty and generally get it except by a few bonehead employees.

Anonymous
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Anonymous
April 14, 2013 12:44 am

Loyalty is a two way street, and, in my opinion, simply does not exist in today's job market. Too many employers expect their employees to make decisions that are detrimental to the employee in the name of loyalty, but would never consider doing something even incrementally detrimental to themselves in the name of loyalty to their employees.

If you aren't looking out for your own best interests, then no one is, because your boss certainly is not.

Jordan Ross, Principal, Ross Legal Search
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Jordan Ross, Principal, Ross Legal Search
April 14, 2013 6:38 am

It's been a long and busy week for me, I see I was missed. April 11, 2013 at 1:51 PM makes a valid point in that I have a horse in this race, but I'll stand by the advice I'm about to give as ethical and correct nonetheless. I note that much of this point has already been made here by others. That said, April 13, 2013 at 5:44 PM has a point as well; I would sum it up in a phrase from an HR Director years ago who said, "everyone has the right to look". April 11, 2013 at 2:19 PM, thanks for the kind words; as I've learned over the years, if you want total safety and security, don't swim in the shark pool, there are only two roles – shark or chum.

I'll sum up my opinion on counteroffers simply:

Why did you have to quit your job to get what you're worth?

Anonymous
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Anonymous
April 14, 2013 9:53 pm

@5:44- I disagree. As a boss of a number of attorneys, I can tell you that it is in my best interest to care about their futures. I pay them well and I expect them to be loyal and to build themselves into what I expect of them and to stick around and to help our firm make money. If they job-hop, then they generally hurt themselves because they would otherwise be building themselves in a loyal environment and be well-rewarded for their efforts. I have seen so many lawyers in other firms, and a few in my firm, who think the grass is greener elsewhere, so they leave and discover that it's worse where they went and they ruin their career.

Anonymous
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Anonymous
April 15, 2013 1:28 am

I am a 2nd year. I recently had a CD firm express interest. They would pay me more. I politely declined their overtures as I feel I will be better off long term in the current job I have which involves real litigation and excellent mentoring.

Jordan Ross, Principal, Ross Legal Search
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Jordan Ross, Principal, Ross Legal Search
April 15, 2013 4:29 pm

April 14, 2013 at 2:53 PM & April 14, 2013 at 6:28 PM – I will not blindly disagree. 2:53 PM – If you work for the right person, such as yourself, accepting the counter-offer can be a wise move. Would that all employers be as globally thinking as yourself. 6:28 PM – As a second year I would certainly counsel in any event that it was too soon to move. Associates should try to keep moves before partnership to one; two if absolutely needed (layoffs don't count).