Should you accept a counteroffer?
In the ever competitive Real Estate job market, counteroffers have become a common phenomenon. For employees considering one, it can be stressful and confusing – more money or responsibility with a team and a business that you already know is always tempting. But there are risks that can impact long term career growth and workplace dynamics that you need to be aware of.
Let’s start with the statistics:
50% of candidates that resign will be counter offered by their current employer.
80% of candidates who accept a counter offer from their current employer end up leaving within 6 months.
9 out of 10 candidates who accept a counter offer leave their current employer within the twelve-month mark.
If you are considering a counter offer, it’s crucial to weigh up your options and potential risks before making a decision. Here are some points to consider:
More often than not, the reasons you wanted to leave in the first place – eg lack of growth or dissatisfaction with the role or culture – don’t just disappear with a counteroffer. The very nature of a counteroffer is that it is a reaction and is time constrained, so ask yourself what is the reality of delivering on the promises made, specifically:
- Why wasn’t there a clear and visible solution available before and how well thought through are the mechanics of any counteroffer? With the best will in the world, counteroffers are rushed and, in most cases, the underlying reasons for an employee’s initial decision to leave remain unresolved.
- Ask yourself what needs to happen for the promises made to be implemented? If the offer is based on growth of teams or business units, this can be contingent on multiple factors including capital/budget available, market/trading opportunities, management’s ability to deliver, hiring the right people (can be a slow and painful process).
- It’s flattering to be recognised with more money or a promotion but ask yourself why this recognition was not given without the threat of you leaving? Employees who accept counter offers eventually find themselves seeking new opportunities within a year as the same issues often persist.
We will caveat that accepting a counteroffer can, and has been, the right decision in certain circumstances – as the old phrase goes “the grass is not always greener on the other side”. However given the overwhelmingly high percentage of counteroffers that end up being the wrong choice – the points above really are worth doing your due diligence on!