Counter offers are something that we come across within wealth management recruitment in the financial services sector. Now, while it may seem tempting to stay with your current employer after receiving a counter offer, there are hidden costs to consider beyond the immediate salary.
The initial pro here is that that you get more money, however it’s well worth exploring with us the risks of the potential damage to your professional reputation, to missed opportunities for growth and advancement and we look at the true costs that people often overlook.
Imagine that you’ve gone to the effort of going for interview and preparing for the interviews and assessments…
Congratulations! You’ve just landed that perfect job; you are over the moon! The company is great, the role is what you want and the manager is really keen to work with you! Yay! You accept and are excited to start! How great does it feel to be seen and really valued?
So you bite the bullet and put in your resignation to your manager…
Curve ball!! Your current employer gives you a counter offer. Dilemma!
Now, unless this was your plan in the first place, this curveball will likely fling you into a tailspin of indecision. Should you stay, or should you go?
Questions in your head… is it better to stay with who you know? It is more money after all? Suddenly you feel unsure, nervous and a bit stressed!
There is also that nagging thought… if they really valued me, why did it take my resignation for them to offer me more money?
So, what do you need to consider?
Consider the overall company culture, work environment, and your relationship with your current colleagues and superiors. Will accepting the counter offer improve your job satisfaction and work relationships, or will it lead to further tension or resentment? Will you feel the need to constantly justify your new salary, and will your employers demand more from you?
How important are your long-term career goals and does accepting the counter offer align with them?
Ask yourself, are your goals being realised or is this just one of the reasons you decided to leave in the first place? Will staying at your current company help you achieve your professional objectives, or will it just be a short-term solution?
Evaluate whether the counter offer includes opportunities for career growth and development, with written timescales. Will it set you on a path toward your desired career trajectory, or will it simply maintain the status quo?
Moving wealth management company provides a new set of people, new experiences, new skills, which in turn provides new opportunities for development both personally and professionally. Who knows where it could lead you? Are you feeling empowered and excited yet?
What is the long-term job security at your current company? Will accepting the counter offer provide you with a sense of job stability? Were concerns about the company’s financial health or future prospects one of your reasons for leaving?
How about the relationship with your manager? Keep in mind that accepting a counter offer can sometimes lead to strained relationships with your current employer, who may view your intention to leave as a lack of commitment. Be prepared for potential consequences and weigh them against the benefits of staying. Yes, you may have more money, but will those promotions always be given to someone else, or will you receive smaller annual pay increments to bring you back in line to where they want you to be?
So, you’ve weighed all the pros and cons and are still not sure what your best course of action is. Utilise all the time available to you, to make the best-informed decision. Talk it through with your recruiter too, a great recruiter will be impartial and be a sounding board for you, so that you can make whatever the best decision is for you personally.
If you’re seriously considering the counter offer, but feel the new role is more “you”, it might be worth negotiating with the new company for extra incentives, be these monetary or otherwise. It’s a big upheaval moving company, so if the new incentives more than outweigh the ease of staying, what’s not to love! It can be a risk, as their offer might have been best and final… if you are working with an ethical recruiter, they will have a great relationship with the client and will be able to find this out for you, if they don’t know already.
What is it that you really need for your career? Consider Long-Term Goals – don’t just focus on the immediate benefits.
You might be able to convince yourself the counter offer is the better route to go down, simply because it is the easier path. However, do put your practical head on for a period of time. Think about your career trajectory over the next 3-5 years. Which company offers a better path for your professional development, and where you see yourself being?
If you could simply press a button and be in a particular job with no hassle in between – which one would you chose, where do you picture yourself?
Never be afraid to talk to people. Discuss your situation with mentors, friends that you trust, or family members. Getting different perspectives can help you gain clarity – simply speaking words out aloud can help them seem real and guide you towards the correct choice for you.
There is a “global shortage of skilled finance professionals” so you are in an excellent bargaining position should you wish to stay, but you must never forget the reasons you wanted to leave in the first place. If these won’t be fixed with a pay increase, accepting the counter offer could be a very risky choice.
The CIPD research shows that for people post accepting the counter offer:
“a significant portion (29%) expressed inefficiency in retaining staff through this method.
A lot of people who do accept to stay, tend to leave within 12 months anyway and have missed out on the job they really wanted. Wow, can they kick themselves! They often leave in this timeframe as the root causes of their reasons for leaving were still there, the promises made were not kept and it did not pan out as they had hoped. Do you want this to be you?
Trust your instincts, don’t let yourself be in a “What if?” position – make sure you are happy with any decision you make.
After all, being valued and appreciated is a huge part of why we are successful in our careers.
For additional guidance on handling counter offers or for unbiased career advice, contact the Truestar Talent Team today for a confidential chat: https://www.truestartalent.co.uk/meet-the-team/
Consider the overall company culture, work environment and your relationship with your current colleagues and superiors. Weigh up if accepting the counter offer will improve your job satisfaction and work relationships, or if it will lead to further tension or resentment.
Is the counter offer is the better route to go down or simply the easier path? Think about your career trajectory over the next 3-5 years and consider if company offers a better path for your professional development.
A lot of people who do accept to stay, tend to leave within 12 months and miss out on the job they really wanted! They often leave as the root causes of their reasons for leaving were still there, the promises were not kept.
