Should I Take a Counteroffer?

[@PuerinTheHunter]

One of the best videos, if not the best, about this subject. Thanks!

[@joshforce]

Wow! Thanks, Joseph. Really appreciate that.

[@AdamIsMyNameO]

I have a fairly unique situation that makes the counter offer I’ve been given difficult to make a decision on. In short, I’ve been with my company for 3.5 years and it’s great. I wasn’t looking for a job. However, I was contacted by a company about an open role which sounded interesting, so I decided to just see what they had to say; perhaps it would be a very similar job but with more pay (not that I’m underpaid now per se). Fast forward to now and I have an offer which is 35% over my current total compensation (they have kind of a weird split where the first two years are heavily based on salary + bonus and thereafter it shifts to salary + equity/RSUs), BUT I have no idea if the new company will offer the same work life balance or freedom that I have now. If I stay with my current company and accept the counter, I get a really nice raise, I get to maintain my lifestyle (which has been nicely low stress), and there’s some other perks (like a fully paid 4 week sabbatical in about a years time) which I get to realize. If I take the NEW job, it’s significantly more money, might be a fun experience, but of course I have no way of knowing if I’ll actually like it as much. Difficult choice… I told my boss, and the next day they offered to promote me to a senior role and increase my pay by 20%. So now I’m weighing the benefit of the 35% increase for the new job against the 20% for my current job which - as I said - I do enjoy…. But who know, maybe the new gig is just as good or better.

[@joshmatthews4920]

Sometimes, better the devil you know. You were happy, not looking and now have a raise. You also know you’re valuable in the market. Unless there’s a driving force behind the move ie -career advancement, or leaving a nasty boss, it’s always high risk to leave. Especially if you may be sacrificing freedom and friends for only a 15% increase.

[@AdamIsMyNameO]

@@joshmatthews4920 thank you for the reply! My main reason for considering the new job actually surrounds the ‘freedom’ you mentioned. Right now, I’m in a unique situation with my job (and have been since I started) which may not last forever. If the nature of my role changes, which it very well could even in the next 6 months, it’s possible a great deal of that freedom could go away and a lot of stress could be added. It’s not a guarantee, but a real possibility. If I knew with confidence I could maintain my current situation, I would definitely be committed to staying, but that lingering question has me torn.

[@joshforce]

Sounds like you're planning for what might happen. It's good to remember that the future is always unknown despite our preparation. If you find out in 3-6 months that your role will change or you will lose freedoms due to a change within the company, then take action at that time. In the meantime, work smart, record your successes and grow your network. You'll land in the next place when you're ready.

[@blaircole2383]

Thank you so much for the advice and how to navigate a counter offer, lots of info that I didn't realize

[@joshforce]

You are so welcome!

[@AimAim]

What great discussion here. I have a question, but first let me tell you some of my background. I graduated a few years ago and started working at a big company. I have been working hard to maintain my "highly effective performance" every year. I got promoted to tier2 last year, but, according to my coworkers, responsibility is closed to tier3. My pay is just right in the middle or tier2 range and I am not happy about it comparing to my workload. I mentioned to my manager and he had all sweet plan laid for me. Well, he likes me as for personality and performance. I asked him he could flow up my request for some merit compensation for my works a couple months ago, but nothing comes back to me yet. I'm about to start looking for another opportunity elsewhere, but with me leaving will cause huge damage on the project's schedule. It is difficult to replace me right away since my existence provide a great flow for the project. If I were to leave, I believe that the company will counter offer. now my question. If I were to get an offer from elsewhere and current company would provide extra on top of counter offer. Should I still take it? Thank you very much.

[@joshforce]

AimAim - Good job working on your career. To answer your question, the point of the whole video is a resounding "no". I will say that many people think a company can't get by without them, but this is only the case a very small percentage of the time. Humans are great at adapting, communicating, getting others to agree on things etc. So...they'll be fine. Don't expect a counter offer and I wouldn't accept one if it was offered. We are all replaceable. More importantly, don't sell yourself short! If you are underpaid, and it's been getting you down, get a raise or move on. If you are happy and can live on what you earn, then finish the project and use it as an accomplishment noteworthy of a raise. Hope this helps! :)

[@AimAim]

@@joshforce you have a really good point. I'll take on the advice and move on. Thank you. :)

[@juliejerrylee]

This is really good thanks!

[@joshforce]

Glad it was helpful!

[@adas5369]

So.. I just got promoted in my department,... but the recruiter has not called me yet.... I was told not to tell others yet.... so I did not..... But...my work friends are congratulate to me 😳 ...because my manager told them about my promotion, yet he told them not to talk.... my manager told me not to ask over Mid pay, just because we do not have no one in the department over Mid pay..... BUT.. I am the only on in the whole department with 10/10 performance....I am so confused and lost... this will be my first negotiation ever...I do not know what to do.....

[@joshmatthews4920]

Yes. A little confusing. I do t understand what the recruiter has to do with this as it’s an internal position. Do you mean HR? Regardless, be patient. It sounds like they are working on the internal authorizations and approvals prior to announcement. Just wait and see what the promotion includes (pay, responsibilities, etc.). The 10/10 score got you the promotion, so take a deep breath and congratulate yourself and….wait. If the compensation is below what you should be getting in the open market maybe it’s a good time to gently ask for a higher wage. For more information join the Ask Me Anything show on Friday at 12 PST on Clubhouse. Follow me there @joshforce

[@kauserfatima4044]

Hi Josh! Your video was super helpful. So my question, if my employer counter offers and match pay of my new offer and gives in writing they are not going to terminate me at least for 2 years. Is it worth it? I love my current job, pay is the only reason I was leaving to support family.

[@joshforce]

Thank you Kauser. I appreciate you watching it. What you are describing is a technique that can be effective, but one I find a little bit ... unclean. It's much better to make a real case for a salary increase, rather than use another manager and company job offer to make the case for oneself. It's like making a partner jealous so they pay attention to you. Better to have a partner that pays attention already, or ask nicely for attention after doing positive things to deserve it. The amount we make correlates to the value we provide to others AND them recognizing it. Recently on my clubhouse show we discussed this. You can say something like (if it's true, that is), "other companies have been showing me a lot of attention lately. And don't worry, I've held them off. The truth is, I love it here and don't want to leave. I think my compensation has been terrific for when I joined, but since then I've accomplished x, y and z, and have taken on a, b and c. With that in mind, would you be open to having discussion about my current salary and how you think I'm doing here?" Hope this helps. :)

[@kauserfatima4044]

@@joshforce Yes, this helps tons. Thank you!!

[@JamesSmith-cm7sg]

What about an employee who can't be replaced? A person who brings value that you know you can't easily find again.

[@joshforce]

It's a fair question. The reality is, top performers are never easy to replace regardless of them being an administrative assistant or nuclear scientist. BUT...they can be replaced. If it will cost a fortune to lose them, you can always counter and specifically, honestly, address the reasons why they wanted to leave in the first place. True story - I just lost a candidate to counter offer. My client had to a compete with over $500,000 of stock vesting within 6 months. That's tough to beat. Clearly, he was not easily replaced and they made it easy for him to stay in his seat.