If you are offered a pay rise in response to handing in your resignation, we would advise you to proceed with caution.
It can be easy to be enticed by the money, be wooed by your manger’s flattery and comforted by the familiarity of what you know but before you accept the pay rise and agree to stay, we recommend you consider the following –
If you've not yet handed in your notice - check out our 5 professional tips to make it a smooth and stress free process in our how to hand in your notice guide.
1. Why did you want to leave in the first place?
If you were feeling undervalued, frustrated or keen for a new challenge, these things are not likely to change.
2. Why did it take a resignation to prompt the pay rise?
If it’s about money, are you going to have to go through this drama every time you want a pay rise? They are probably still saving money, think about how much it would cost to replace you.
3. What does the future hold for you with your existing employer?
Will they trust you and be happy to develop you if they think you are looking at new opportunities, or perhaps they offered you a pay increase as a quick fix and do not see you with them long term?
4. Why were you interested in the new role?
Something attracted you to and possibly even excited you about the new employer and job, ask yourself if your existing employer can offer the same?
In most cases an external move brings the greatest opportunity for both career progression and growth in earning potential but it is always worth carefully considering your existing employer’s offer, especially if it is a particularly good deal. However if you decide to continue as planned and make the move, still be sure to thank them for putting together an offer and leave things on a positive note.
Counter Offer Statistics: What the Data Shows
Here are the verified statistics about counter offers based on recent industry research:
Counter Offer Frequency
- 67.5% of managers have extended counteroffers to employees who announced their intention to leave
- 50% of candidates who resign will be counter offered by their current employer
- Smaller companies (10-49 employees) are more likely to make counteroffers, with 80% reporting such practices, compared to 54.4% of larger companies (250+ employees)
When You Should Consider Accepting a Counter Offer
While we generally advise caution, there are rare situations where accepting might be appropriate:
✅ **Accept if:**
- Your only reason for leaving was salary and they've addressed it comprehensively
- You have a strong relationship with management and trust their promises
- The counter offer includes career development opportunities, not just money
- Your current company is going through positive changes that address your concerns
- The new external opportunity was solely about money
❌ **Don't accept if:**
- You were leaving due to poor management, company culture, or lack of growth
- This is the second time you've needed to resign to get recognition
- The counter offer feels like a panic response rather than genuine value recognition
- You've already mentally checked out and committed to change
Frequently Asked Questions About Counter Offers
Should I tell my new employer about a counter offer?
Honesty is generally the best policy, but timing matters. If you're seriously considering the counter offer, inform your new employer as soon as possible to maintain trust and professionalism. However, don't use the counter offer to negotiate with your new employer unless you're genuinely prepared to decline their offer. Most reputable employers will respect your honesty and may even provide additional context about why their opportunity is better suited for your career goals.
How long should I take to decide on a counter offer?
Request 24-48 hours to consider the offer properly. This shows you're taking it seriously while preventing impulsive decisions. Use this time to:
- Review your original reasons for leaving
- Discuss with trusted family/friends
- Evaluate the complete package, not just salary
- Consider long-term career implications
- Assess whether the offer addresses your core concerns
What's typically included in a counter offer package?
Counter offers commonly include:
- Salary increase (typically 10-20% above current)
- Promotion or title change
- Additional benefits (extra holiday, flexible working, car allowance)
- Professional development opportunities (training, conference attendance)
- Stock options or bonuses (in larger companies)
- Improved working conditions (better team, different reporting line)
- Promises of future opportunities (project leadership, international assignments)
Always evaluate the entire package and get promises in writing.
Can accepting a counter offer damage my career prospects?
Potentially, yes. Risks include:
- Trust issues: Your loyalty may be questioned long-term
- Limited growth: You might be passed over for future promotions
- Repeated patterns: You may need to resign again to get recognition
- Industry reputation: If you frequently accept counter offers, it may affect your professional reputation
- Relationship strain: The resignation process can damage working relationships even if you stay
However, if handled professionally and the counter offer genuinely addresses your concerns, it doesn't have to be career-damaging.
How do I decline a counter offer professionally?
Use this approach:
- Thank them sincerely for the offer and recognition
- Be firm but polite - "After careful consideration, I've decided to proceed with my original plan"
- Don't over-explain your reasons for declining
- Reaffirm your commitment to a smooth handover
- Express gratitude for your time with the company
- Keep it brief - avoid lengthy justifications
Example: "Thank you for the generous counter offer. I'm genuinely flattered by your recognition of my contributions. However, after careful consideration, I believe the new opportunity is the right next step for my career development. I'm committed to ensuring a smooth transition during my notice period."
What if my counter offer includes a promotion I've been wanting?
This requires careful evaluation:
- Why now? Question whether this promotion was already planned or is a retention tactic
- Genuine opportunity? Assess if you'll actually be able to fulfill the new role or if it's just a title change
- Team dynamics: Consider how colleagues might react to your sudden promotion after resignation
- Long-term viability: Will this promotion lead to further growth or is it a ceiling?
- Get specifics: Ensure the promotion comes with clear responsibilities, authority, and resources
If the promotion addresses your core career development concerns and feels genuine rather than reactive, it might be worth considering.
Should I use a counter offer to negotiate with my new employer?
Generally, no. This approach often backfires because:
- It suggests you're not genuinely committed to the new role
- Many employers will withdraw their offer rather than enter a bidding war
- It can damage trust before you even start
- You risk losing both opportunities
However, if your new employer's package is genuinely below market rate and the counter offer provides valuable market data, you might politely mention: "I want to be transparent that my current employer has made a competitive retention offer, but I'm still committed to joining your team. Could we discuss ensuring the package reflects my market value?"
What are the signs that a counter offer is genuine vs. a stalling tactic?
Genuine counter offers typically include:
- Specific, written details of improvements
- Immediate implementation of some changes
- Addresses your stated reasons for leaving
- Comes with a clear development plan
- Manager takes responsibility for past oversights
Stalling tactics often involve:
- Vague promises of "future opportunities"
- Requests to "just wait a few more months"
- Emotional manipulation ("we're like family here")
- Only addressing money, not other concerns
- Rushed verbal promises without written confirmation
How often do people regret accepting counter offers?
Studies suggest that 60-70% of people who accept counter offers regret the decision within 6-12 months. Common regret reasons include:
- The underlying issues that prompted their resignation weren't actually resolved
- Feeling trapped or having their loyalty questioned
- Missing out on new experiences and career growth
- Realising the counter offer was a short-term fix rather than genuine change
- Discovering that promised improvements don't materialise
However, those who carefully evaluate whether the counter offer addresses their core concerns and ensures written commitments tend to have better outcomes.
Before considering any counter offer, ensure you've followed our guide on how to how to hand in your notice professionally.
Eligo Recruitment offers a personal, consultative recruitment service. We listen to the people we work with, provide specialist advice and help match the right people to the right jobs. Our areas of recruitment expertise are the following industries; Technology, ERP, Technical Services & Security, Medical and Events. We have jobs and candidates of all levels and across Permanent, Contract and Temporary.