One of the biggest challenges in the insurance sector today is counteroffers. In fact, receiving a counteroffer is one of the main reasons companies have a hard time recruiting candidates. In today’s competitive marketplace, it can be very hard to find replacements for a company’s top performers, which is why companies are constantly fighting to retain their talent as much as possible.
On top of that, the process of hiring a new candidate can be costly and cause some strain on the company. And with more candidates feeling hesitant to leave their jobs with all the uncertainty surrounding us, counteroffers will only continue to rise.
But keep in mind, counteroffers aren’t as great as they seem. While a counteroffer might seem to give you more comfort in the long run, studies show that over 80% of candidates who accept counteroffers end up leaving the company within 12 months.
So, should you accept that counteroffer?
Well, the answer largely depends on your circumstances. There are times where accepting the counteroffer is the better option, but keep in mind that this isn’t the norm. Most of the time, employees regret accepting a counteroffer from their company and staying at their current job.
In this guide, we will explore why you should or shouldn’t accept a counteroffer as well as some key tips to handling counteroffers that will help you out in the long run.
The Pros & Cons of Accepting a Counteroffer
When talking about counteroffers, the cons sadly outweigh the pros by a big margin. While this depends on your own unique situation and other important factors specific to your circumstances, accepting a counteroffer is usually a poor decision – even if you make a little bit more than before.
But, why is that?
Well, counteroffers can be complicated. So, here’s a quick breakdown of the pros and cons of accepting a counteroffer.
Pros Of Counteroffers:
You Will Remain Comfortable
The main reason people end up accepting counteroffers is because they’re already comfortable. And for the most part, staying at your current job is easier since you won’t have to make new connections, learn new skills, or transfer to a new workplace.
These are all things you have to do whenever you leave a company and they can be very challenging, which is why you may want to consider staying.
It Opens Up Room For Change
If you’re unhappy at your current job, there’s a small chance your employer isn’t aware of the things that are making you unhappy.
Letting your employer know that you plan on leaving and have accepted an offer from another company may open up your value to the company in their eyes. And in some cases, this results in the employer making positive changes to help you out, though keep in mind this isn’t usually the case.
You’ll Make More Money
One of the best ways employers can keep their staff from leaving for another company is by simply increasing their salary. Though this doesn’t typically happen, when you’re valuable to the employer and you’re about to leave the company, they will be a lot more likely to give you a reasonable increase.
Cons of Counteroffers
Counteroffers Don’t Change the Situation
Most of the time, accepting a counteroffer usually just means staying at the same workplace and job, just with a slightly higher salary. Remember, the money isn’t the only reason you wanted to leave the job, and receiving a higher salary will not instantly improve your work environment.
Even if you know how to negotiate a counteroffer with your current employer and they accept your conditions, be ready to head back into the exact same environment you wanted to leave in the first place.
Your Future At the Company Is Put At Risk
When you tell your employer you plan on leaving the company and they give a counteroffer, keep in mind that they will remember that you wanted to leave. And in most cases, this could greatly diminish the chances of receiving a promotion in the future. In some cases, they might even replace you since you don’t appear to be loyal to the organisation.
The Workplace Dynamic Changes
When your employer finds out that you plan on leaving, if you accept the counteroffer and stay, be ready for a very different work environment. Relationships will change and you might even find yourself even more uncomfortable than before you planned to leave.
3 Questions To Ask Before Accepting a Counteroffer
If you’re still considering that counteroffer, here are some things you need to ask yourself before deciding on what to do:
- Why did I want to leave in the first place?
- Can my employer really make the changes I need?
- What will happen if I stay?
When you answer the questions from above, hopefully, that will give you some clarity on the situation and hello you with making the right decision.
Still unsure how to proceed? Speak to your recruiter…
Even after careful consideration, deciding on whether or not to accept a counteroffer can be tough, especially if your current employer is offering you a much higher salary than your new one.
If you’re still having a tough time deciding, don’t be afraid to approach your recruiter honestly. They may be able to help you with your situation, and if you do end up leaving, the company may even value your honesty and remember that moving forward.
How can Davies Resourcing support candidates during the recruitment process
The recruitment process can be very hard on candidates. There are so many things to consider that it’s easy to get overwhelmed. That’s why at Davies Resourcing, we are dedicated to supporting candidates during the recruitment process with dedicated teams ready to listen and help you find a solution to your individual circumstances.
If you’re stuck wondering if you should accept that counteroffer or not, don’t hesitate to contact us and we will be more than happy to help.
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