Everyone likes to be wanted. One way an employer can
communicate that to you is through a counter offer. A counter offer means that
your company offers you a more attractive job situation. In addition to a higher
salary or better benefits, the counter offer may mean a new position with more
responsibility.
Accepting a
counter offer is often a mistake for the employee. Consider this scenario:
·
Beth works at an
advertising firm. She comes up with creative advertising ideas for her clients.
She’s worked at Firm A for three years, and her clients appreciate her
creativity. Firm A has several companies that are in the online clothing
business. Beth really wants to work with those clients.
·
Beth approaches
her boss, Rick, about working on the online clothing accounts. Rick puts off
meeting with Beth for weeks, saying that he’s busy. When they finally discuss
Beth’s interest in the online clothing work, Rick says he will try to shift
that work to Beth. Two months goes by, with no change in Beth’s
responsibilities. Rick doesn’t give any explanation for the delay.
·
Firm B approaches
Beth about a creative advertising position at their firm. When Beth expresses
her interest in online clothing firms, Firm B assures her that she will work on
those accounts as soon as she starts. Beth accepts the position with Firm B.
Beth goes into
Rick’s office to announce that she has accepted the job at Firm B. Rick
realizes that he’s about to lose a valuable employee. He apologies for not
following up on Beth’s request to work on online clothing accounts. He offers
her a 20 percent raise, and assurance that she can work on the advertising
accounts she prefers. Rick has made Beth a counter offer.
So, what does
Beth do? This moment is important, because it can have a big impact on her
career. It’s my view that accepting Rick’s counter offer (and backing out of
the job that she accepted at Firm B) is often a mistake. Here’s why:
·
Impact at you current job: Consider Rick’s management style. He didn’t take
action to meet Beth’s needs until she was planning on leaving. Is this a
manager you want to work for? When another work issue comes up, will Rick take
action? Beth also needs to consider that Rick may not talk with Beth about
future promotions, since she accepted another job and backed out. In his mind
(rightly or wrongly), Rick is wondering whether or not Beth will stay for the
long-term.
·
Impact at Firm B: If Beth accepts the job at Firm B and backs out; her credibility with
the people at that firm is damaged. Management at Firm B may not consider Beth
a candidate for future positions, since she backed out of a job she accepted.
·
Working with all parties in the future: Obviously, people who work in a given industry move
from one company to another. Years down the road, Beth may interview at a firm
that employs people from either Firm A or Firm B. If those people remember Beth
accepting the counter offer, they may not want to interview Beth.
So, what’s the
best way to handle this issue? Unfortunately, there’s no easy answer. However,
backing out of a job you’ve accepted may be worse for your career than sticking
with your original plan and taking the new job. In this case, Beth’s better
alternative is to stick with the job at Firm B and resign from Firm A.
Beth’s meeting
with Rick may be difficult. Rick may get upset, because he’s losing a valuable
employee. He may also realize that his poor management led to Beth’s departure.
Beth’s best approach is to thank Rick for the opportunity to work at the firm-
and also tell Rick that her mind is made up. She may want to mention that it
would not be fair to Firm B to back out of a job she has accepted.
The good news
is that Beth should be happier in her new job. If she can get through her
conversation with Rick in a professional way, she will move forward
successfully in her career.
Let me know how I can help!
Ken Boyd
St. Louis Test Preparation
Author: Cost Accounting for Dummies, Accounting
All-In-One for Dummies and The CPA
Exam for Dummies (Sept. of 2014)
(amazon author page)
amazon.com/author/kenboyd
(cell) (314) 913-6529
(email) ken@stltest.net
(website) www.stltest.net
(you tube channel) kenboydstl
(facebook) St Louis Test Prep
(twitter) @StLouisTestPrep
(linked in) https://www.linkedin.com/pub/ken-boyd/17/163/286
Author: Lynda.com, Personal Finance Fundamentals (Summer of
2014)
