How to Handle a Counter-Offer

Ask the Expert
We asked veteran search professional Derek Hugdahl for some insight into today’s job market.

In today’s ultra-competitive hiring market losing a valued employee can have a big impact on an organization. Companies may extend a counter-offer to lure an exiting employee to stay. In nearly every case we advise against accepting a counter-offer once you have submitted your resignation to your company. Rarely are there circumstances when it will end up working out well.

Your smooth exit from a company starts with how you approach your resignation process:

So, you’ve received an offer from a new company and you have accepted. In your resignation letter it is best to use direct language that is not open-ended. This language will allow you to remain consistent throughout the process of leaving the company and ending your current employment, as well as through any counter-offer, should one be offered.

For example, you will want to thank the current company for all they have afforded you, but you have made a firm decision to accept another position that is in the best interest of yourself and your family, etc.…

Companies have gotten very sophisticated in how they approach a counter-offer. Often, a company will not immediately ask what they can do to keep you. Your company may start with a “pre-exit” conversation, to help identify potential ways to keep you. This may be followed by an informal lunch or meeting to glean information. Keep in mind that as these take place any issues you have should not be discussed until you have your formal exit interview on your last day of work. Any issues or concerns ought to wait until your formal exit interview. If you are asked for information along the way, refer to the verbiage used in your resignation letter. Consistency along the way allows for a smooth and professional resignation process.

Usually a counter-offer is a short-term solution, allowing the company to buy time until they are in a better situation to absorb the loss of the employee (you). Once you have submitted a resignation, you are likely no longer seen as a trusted member of the inner circle and have possibly damaged future opportunities and could be seen as a liability.

When choosing to look for, and accept, a new opportunity outside of your current employment, make your decisions thoughtfully and carefully. Then, offer your resignation professionally and with confidence.

Derek Hugdahl has twenty years of contingent and retained search experience in the senior-level accounting and finance space. Connect with Derek on LinkedIn.