Hey candidates, have you noticed that the job market is INTENSE these days?  Have you received multiple offers or a counteroffer from your current employer?  How did you decide what to do?  

The Australian job market is moving at a rapid pace and candidates are in the driver’s seat.  The Australian Bureau of Statistics has said that there has been a ‘strong increase’ in job vacancies and the unemployment rate has fallen back to the pre-pandemic rates.   At the same time, the average full-time earnings are up 2.1 per cent over 2021.  

This means employers have to move fast to land the best employees and jobs abound.  We’ve experienced a wild rise in candidates getting counteroffers, or an offer for more money or benefits from their current employer after they try to resign.  Some employers are giving counteroffers of up to a 25% increase in salary to retain current staff looking for jobs elsewhere.

Our advice: if you receive a counter-offer make sure you think long and hard about the big picture. Don’t be fooled by dollar signs. Make sure you ask the right questions to be sure staying with your old company is really where you want to be. 

Here’s how to handle a counter-offer to ensure your happiness and the health of your career: 

#1 ASK: Why wasn’t I valued before?

• Why did it take the prospect of your resignation to propel them into action and value you at the rate you value yourself? 
• Have you asked for a raise or promotion previously and were declined? 
• Where is the budget coming from? 

UNDERSTAND: Perhaps your resignation has truly made them realize they were undervaluing you, but in some cases, the reason behind counter-offering is more to do with the inconvenience of finding a replacement than actually valuing you as an employee. It may even be a ploy just to buy time and replace you later.

TAKE ACTION: Ask these questions of your current supervisor or hiring manager as respectfully as possible.  

#2 ASK: Why did I want to leave?

• When considering a counteroffer, revisit the top three reasons why your candidate wanted to leave in the first place. 
• Does this counteroffer address those concerns, or only provide an increase in salary? 

UNDERSTAND: If an employer does promise change, tread carefully—you don’t want to be burned by empty promises. Take time to consider whether the problem is habitual or circumstantial.  Know that ongoing behaviours and ingrained culture are highly unlikely to change.  If you’ve raised this issue to your manager before and nothing has changed, expect more of the same.  

TAKE ACTION:  Again speak to your internal hiring manager and remind them of the top three reasons you wanted to leave.  Find out how they plan to remedy those concerns and make sure to be realistic about your expectations regarding the change.  

#3 ASK: Am I willing to take the risk of burning bridges with future employers?

• Is this a company that I would like to work with in the future?
• Will rejecting their offer tarnish my reputation with this company, recruiter or the industry overall?

UNDERSTAND: You went through the interview process, met with key management, negotiated a salary and benefits package, and were presented with an attractive offer… and then you pulled the rug out from under them. Ouch. Employers invest a lot of time and resources into the hiring process and having your exciting new recruit pull out at the last-minute hurts. 

TAKE ACTION: Take a step back and look at the big picture… Decide which company you identify with in the future and which would boost your career rather than hurt it.  Never forget, people in the same industry talk and your reputation often precedes you.  

#4 ASK: What would be your next logical move in career progression if you remained with your current employer? How long would it take to get to that next step?

• What are the pros and cons of staying with your current company versus taking a job at the new one?  
• What is the potential of your current role vs. the new one? 

UNDERSTAND: Know how much the new job would catapult your career and why it would make sense for you from a career development standpoint.  

TAKE ACTION: Make sure you regularly check in with your career goals and that the next job you take keeps you on track. 

Remember, if you were motivated enough to clean up your CV, update your LinkedIn profile, and go through multiple interviews then be wary of accepting a counteroffer. Get in touch with what motivated you to take action and don’t be distracted by counteroffers if money wasn’t the primary reason you started looking for a job in the first place. Thinking of quitting?  Be sure to read how to quit your current job like a professional.  Thinking of accepting a counter-offer?  Here’s why employees stay.