{"id":509360,"date":"2022-03-14T17:20:51","date_gmt":"2022-03-14T11:50:51","guid":{"rendered":"https:\/\/www.springworks.in\/blog\/?p=509360"},"modified":"2023-07-17T16:51:23","modified_gmt":"2023-07-17T11:21:23","slug":"job-counter-offers","status":"publish","type":"post","link":"https:\/\/blog.springworks.in\/job-counter-offers\/","title":{"rendered":"Job Counter Offers: What are they and how to deal with them?"},"content":{"rendered":"\n<p>Richie is an employee in an organization. He has started looking out for opportunities because of various reasons. He has received an offer from a prospective employer for an \u201cX\u201d amount. He blocks the time of his manager for discussion on his resignation and moving on from the organization. After listening to Richie\u2019s decision to move out, the manager starts thinking of different ways of not losing Richie to another organization. <\/p>\n\n\n\n<p>Richie is a key asset to his team, and he may have to decide to extend a counteroffer to retain Richie, which may be 10% &#8211; 20% higher than what he has received while also <a href=\"https:\/\/www.springworks.in\/blog\/characteristics-of-high-performing-teams\/\">offering enhanced responsibilities<\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_77 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/blog.springworks.in\/job-counter-offers\/#So_what_does_a_Job_Counteroffer_mean\" >So, what does a Job Counteroffer mean?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/blog.springworks.in\/job-counter-offers\/#Why_do_organizations_extend_job_counter_offers\" >Why do organizations extend job counter offers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/blog.springworks.in\/job-counter-offers\/#Counteroffer_%E2%80%93_Good_or_bad\" >Counteroffer \u2013 Good or bad?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/blog.springworks.in\/job-counter-offers\/#Pros\" >Pros:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/blog.springworks.in\/job-counter-offers\/#Cons\" >Cons:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/blog.springworks.in\/job-counter-offers\/#How_to_write_a_counteroffer\" >How to write a counteroffer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/blog.springworks.in\/job-counter-offers\/#How_to_handle_a_counteroffer\" >How to handle a counteroffer?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/blog.springworks.in\/job-counter-offers\/#How_to_accept_a_counteroffer\" >How to accept a counteroffer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"#\" data-href=\"https:\/\/blog.springworks.in\/job-counter-offers\/#How_to_decline_a_counteroffer_politely\" >How to decline a counteroffer politely?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"#\" data-href=\"https:\/\/blog.springworks.in\/job-counter-offers\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"So_what_does_a_Job_Counteroffer_mean\"><\/span><strong>So, what does a Job Counteroffer mean?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A job counteroffer is a term used to describe a situation where a current employer decides to match or exceed the compensation amount that an employee is receiving from another company \u2013 perhaps a competitor.&nbsp;<\/p>\n\n\n\n<p>A counteroffer may also include one or more of the following-<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><a href=\"https:\/\/www.springworks.in\/blog\/salary-bands-and-job-grades\/\">Offering a pay increase<\/a><\/li><li>Extending a promotion&nbsp;<\/li><li>Enhancing roles and responsibilities&nbsp;<\/li><li>Offering additional benefits to the ones that already exist<\/li><\/ol>\n\n\n\n<p>There are several reasons for an employee to <a href=\"https:\/\/learn.g2.com\/how-to-write-a-resignation-letter\">resign from their current organization<\/a> \u2013 financial growth, career growth, mismatch with role expectations, dissatisfaction with the current organization, etc. <\/p>\n\n\n\n<p>For example, an employee decides to move out of the organization if they receive an offer from a prospective employer. When the <a href=\"https:\/\/www.springworks.in\/blog\/one-on-one-meetings-with-managers\/\">employee meets their manager to discuss<\/a> an exit date, they may extend a counteroffer to retain the employee.<\/p>\n\n\n\n<p>In the Counteroffer example we looked at, depending on how Richie feels, he may lean towards accepting the counteroffer from the current employer or come up with ways to decline the counteroffer.<\/p>\n\n\n\n<p>A team manager and the organization need to have some data to understand how to handle counteroffers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-do-organizations-extend-job-counter-offers\"><span class=\"ez-toc-section\" id=\"Why_do_organizations_extend_job_counter_offers\"><\/span><strong>Why do organizations extend job counter offers?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the typical reasons for organizations to offer counter offers to their employees are &#8211;&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>To retain a critical resource whose skills are valued.<\/li><li>To retain the tangible and intangible knowledge about the organization, role, customer, systems, and processes that an employee may possess.<\/li><li>To ensure that the organization does not have to bear extra costs either to onboard a new executive or promote an existing employee.<\/li><li>Ensure that the existing team does not have to bear extra workload due to the exiting employee.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-counteroffer-good-or-bad\"><span class=\"ez-toc-section\" id=\"Counteroffer_%E2%80%93_Good_or_bad\"><\/span><strong>Counteroffer \u2013 Good or bad?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are different schools of thought on whether counter offers are good or bad.<\/p>\n\n\n\n<p>Let us look at some pros and cons of counteroffers.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-pros\"><span class=\"ez-toc-section\" id=\"Pros\"><\/span><strong>Pros:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li>A counteroffer may provide higher compensation, increased responsibilities, <a href=\"https:\/\/www.springworks.in\/blog\/flexible-work-schedule\/\">flexible working<\/a>, or earn a promotion to the employee.<\/li><li>It can ensure that the position and role remain filled without putting any additional effort to fill in the replacement.<\/li><li>Retaining an employee through a counteroffer ensures that the <a href=\"https:\/\/www.springworks.in\/blog\/tips-to-build-high-performing-teams\/\">team performance<\/a> remains intact.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cons\"><span class=\"ez-toc-section\" id=\"Cons\"><\/span><strong>Cons:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li>It can negatively impact employee morale. In addition, employees loyal to the organization may question this strategy as this may put them at a lower level when compared to someone who has a counteroffer.<\/li><li>Even after accepting the counteroffer, the said employee may still be a flight risk as they have already shown an inclination to leave.<\/li><li>It can set a bad precedent. If the organization decides to extend a counteroffer to retain one employee, it can result in <a href=\"https:\/\/www.springworks.in\/blog\/strategies-to-reduce-employee-turnover-2\/\">more employees wanting to quit<\/a>, hoping to get a counteroffer. It can result in an increased attrition rate.<\/li><li>Giving a counter offer may indicate to an employee that they were underpaid or undervalued for the amount of work and effort they were putting in.<\/li><li>It may increase the cost of the function, resulting in exceeding the stipulated budget.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-write-a-counteroffer\"><span class=\"ez-toc-section\" id=\"How_to_write_a_counteroffer\"><\/span><strong>How to write a counteroffer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Writing a counteroffer is always a critical activity. Certain things must be kept in mind while writing a counteroffer, such as &#8211;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Thoroughly research the benchmarks offered for the role in the industry.<\/li><li>Ensure data availability for backing up your research and the <a href=\"https:\/\/www.visme.co\/templates\/proposals\/\">proposal<\/a>.<\/li><li>Continue to express interest and suggest an alternate way to discuss the <a href=\"https:\/\/www.visme.co\/proposal-maker\/\" target=\"_blank\" rel=\"noreferrer noopener\">proposal<\/a>.<\/li><li>Be ready with a response to the counter offer. The employee may want to modify the counteroffer proposal.<\/li><li>Finally, be prepared for different results from the discussion. There is a 50:50 chance that the counteroffer aligns with the employee&#8217;s expectations.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-handle-a-counteroffer\"><span class=\"ez-toc-section\" id=\"How_to_handle_a_counteroffer\"><\/span><strong>How to handle a counteroffer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the earlier example, there are two major decision points for Richie. First, he may accept the counter offer or, the trickier one, reject the counteroffer politely so that he does not burn bridges.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-accept-a-counteroffer\"><span class=\"ez-toc-section\" id=\"How_to_accept_a_counteroffer\"><\/span><strong>How to accept a counteroffer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>While accepting a counteroffer may seem a lucrative and easy option, it indeed is not. The below points should be considered before accepting the counteroffer from the current employer-<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Seek time to evaluate the counter offer.<\/li><li>Evaluate whether your reasons for quitting; are addressed in the counteroffer or not.<\/li><li>Evaluate the reason for which you are receiving the counter offer.<\/li><li>Compare the counteroffer with the one received from the new organization and list opportunities and threats from both aspects.<\/li><li>Politely communicate the offer acceptance while also documenting the decision formally.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-decline-a-counteroffer-politely\"><span class=\"ez-toc-section\" id=\"How_to_decline_a_counteroffer_politely\"><\/span><strong>How to decline a counteroffer politely?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you decide to decline a counteroffer, do that as politely as possible with all plausible reasons so that you do not burn bridges with the current employer. Some points to keep in mind while declining a counteroffer from the current employer are:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Try and establish an <a href=\"https:\/\/www.springworks.in\/blog\/asynchronous-communication-remote-work\/\">appropriate communication channel<\/a> for discussion.<\/li><li>While formally declining a counteroffer, it is important to express gratitude to the organization for considering a counteroffer for retention.<\/li><li>Articulate the reason for declining politely.<\/li><li>Once the above is done, express your desire to stay in touch with the current employer and offer support for a brief duration to help the new incumbent with the transition.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Extending a counteroffer to an employee is a strategic decision for an organization. Similarly, deciding whether to accept or decline a counteroffer can be a tricky scenario for an employee who has <a href=\"https:\/\/www.springworks.in\/blog\/the-great-resignation\/\">decided to move on and submitted their resignation<\/a>. While doing so, both the organization and the employee need to extensively think through the pros and cons of the steps and their reasons.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Know all about the job counter offers &#8211; From what they are to whether they are good or bad.<\/p>\n","protected":false},"author":3,"featured_media":509362,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[482],"tags":[],"class_list":["post-509360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-human-resources","disable-dropcap","disable-2-columns"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.3 (Yoast SEO v26.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Job Counter Offers: What are they and how to deal with them? - Springworks Blog<\/title>\n<meta name=\"description\" content=\"Read this article to know all about the job counter offers - From what they are to whether they are good or bad.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.springworks.in\/blog\/job-counter-offers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Job Counter Offers: What are they and how to deal with them?\" \/>\n<meta property=\"og:description\" content=\"Know all about the job counter offers - From what they are to whether they are good or bad.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.springworks.in\/blog\/job-counter-offers\/\" \/>\n<meta property=\"og:site_name\" content=\"Springworks Blog\" \/>\n<meta property=\"article:published_time\" content=\"2022-03-14T11:50:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-17T11:21:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blog.springworks.in\/wp-content\/uploads\/2022\/03\/Blog-Cover-Page-31-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Springworks Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/blog.springworks.in\/wp-content\/uploads\/2022\/03\/Twt-post-21-1.png\" \/>\n<meta name=\"twitter:creator\" content=\"@https:\/\/twitter.com\/springroleinc\/\" \/>\n<meta name=\"twitter:site\" content=\"@springroleinc\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Springworks Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.springworks.in\/blog\/job-counter-offers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/blog.springworks.in\/job-counter-offers\/\"},\"author\":{\"name\":\"Springworks Team\",\"@id\":\"https:\/\/blog.springworks.in\/#\/schema\/person\/6d88881fb107cd90192ec2da81bff5aa\"},\"headline\":\"Job Counter Offers: What are they and how to deal with them?\",\"datePublished\":\"2022-03-14T11:50:51+00:00\",\"dateModified\":\"2023-07-17T11:21:23+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/blog.springworks.in\/job-counter-offers\/\"},\"wordCount\":1038,\"publisher\":{\"@id\":\"https:\/\/blog.springworks.in\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.springworks.in\/blog\/job-counter-offers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/blog.springworks.in\/wp-content\/uploads\/2022\/03\/Blog-Cover-Page-31-1.png\",\"articleSection\":[\"Human Resources\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/blog.springworks.in\/job-counter-offers\/\",\"url\":\"https:\/\/www.springworks.in\/blog\/job-counter-offers\/\",\"name\":\"Job Counter Offers: What are they and how to deal with them? 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