Greener pastures: Should you stay or go for new job when given counter-offer?

Around early 2022, the communications company where Lydia Obonyo was working had a vacancy for an internal managerial position.

Feeling confident enough for the role, Lydia applied, but her application was met with silence for months, not even a response acknowledging receipt of the application.

Around July, Lydia applied for another job at a non-governmental organisation, did the interviews, passed, and by August, she received her offer letter.

“I tendered my resignation at my previous workplace, but I approached my supervisor and the director, who shared how disappointed they were in me for wanting to leave, yet the job they had announced was planned to be given to me, and they gave me a counteroffer,” she says.

So, being between a rock and a hard place, Lydia took some time to think through the two job offers.

It did not take too much thinking to see her former workplace was too congested for her to thrive and be whole.

“I was doing too much, and my pay was not matching up. I felt it was an overuse of my skills and time. I remembered how my mental health was stifled, how the work environment was toxic...and the fact that they had to wait until I got another offer to then come up with a counter. I knew I could not do it for another year. So, I left.”

What should you consider?

Beverly Khasiala, a talent manager at Ceriops Environmental Research Organisation, says often, an employer does not consider the interests of the employee when giving a counteroffer.

“He or she (the employer) prioritises the best interests of the company, maybe salvaging business operations and/or profits. They are just looking for a temporary solution so there is no gap in manpower or operations,” she adds.

However, to ‘checkmate’ the employer, the employee should consider their career prospects before accepting or declining a counteroffer.

You may stay at your current company and get that salary increment, but what about your goals?

Also, Ms Khasiala notes, that you should check the culture of the two companies. “Which offers you flexible working hours? Is there diversity and inclusion? Are there learning and development opportunities?”

Further, you should consider your professional brand. “For instance, if you were recruited through an agency or organisation, you went through all the interview stages, negotiated the salary, then took a counteroffer... it may not look so good because recruitment is costly and takes time, so chances of you being recruited by that company in the future are slim. Alternatively, the company or recruiting agency can blacklist you,” cautions Ms Khasiala.

In addition, you should note that once you have handed in your resignation to your current employer and they gave you a counteroffer, mistrust has already been created.

“Your employer now knows you have one foot in, one foot out. So, they will work around your exit.”

Assessing a genuine counteroffer

While counteroffers may look like delay tactics from an employer until they find your replacement, Ms Khasiala says that you can recognise a genuine counteroffer by looking at history.

“Have other people been counteroffered before, and how did it look? Was the employer true to their word... this is what we are changing, and this is what we are offering you to stay?”

Another indicator is that your current employer should give their counteroffer right from the start. Do not disclose what the new employer will be paying you.

“For instance, if they know the new employer will be offering you Sh50,000 and they front Sh55,000, it means they do not value you as a person, they just want you to forego the other opportunity so that you can stay.”

Ms Khasiala also shares that an employee can identify a genuine counteroffer by looking at the company’s succession plan.

“Even if previously your boss went on leave or resigned and you were not offered that opportunity, then you can be sure that retaining you in the organisation for the long-term is not in their interest.”

Better the devil you know…

Kevin Kadipo, a human resource practitioner, says there are certain times when an employee is inclined to accept a counteroffer.

Topping the list is money. If the current employer is willing to give a raise, many employees, especially in Kenya, will be inclined to accept the offer.

Second, Mr Kadipo shares, that it goes hand in hand with the saying, “Better the devil you know than the angel you have just met.”

“There are people who fear change, so they would rather stay where they are. Also, the fear of being on probation before being confirmed can make many reconsider,” he elaborates.

“However, if you are competent, you believe in yourself, and you love to change and ride with it, do not accept a counteroffer. Go. Change is good, even if it means dealing with the devil you do not know.”

Also, Mr Kadipo notes that another reason to take the counter-offer is during an industry recession if the company takes care of the employee first as a human, before as a staff member.

“Stay. Work and grow with them.”

Why counter-offers are given?

Mr Kadipo says often these counter-offers are pulled from beneath the table by companies with no clear succession plans.

“Once you realise critical roles and skills, you know very well that competitors will poach or want to enhance them, and you will not have enough time to replace them. So, start planning their exit early. They will not be here forever,” he explains.

Sometimes, it is also about perception. Mr Kadipo says the counteroffer may be given because the employer fears you might take clients with you.

“It could also be because of competition. They do not want you to reveal the organisation’s weaknesses and strengths.”

So what timing is good for accepting or declining counteroffers?

Mr Kadipo says: “If you are new to the job, you would rather stay until you hit three to four years.

"By that time, you have learned the ropes, and you are very well-equipped. You can handle end-to-end tasks. So, go.

“Also, consider the present, not the future. Do not fall for the promises of, ‘When we do our review, we shall promote you.’ Get what you can here and now.”

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