Seeking a counteroffer carries risks on all sides

Johnny C. Taylor Jr., a human-resources expert, is tackling your questions as part of a series for USA TODAY. Taylor is president and CEO of the Society for Human Resource Management, the world’s largest HR professional society.

The questions submitted by readers and Taylor’s answers below have been edited for length and clarity.

Question: I have had a couple of interviews at other companies and am getting close to a job offer. However, because I’ve done well at my current company, I anticipate that they will try to counteroffer. In fact, I’m even thinking about asking for one. Should I, and what are my chances? — Anonymous

Answer: I’ll level with you. I understand the reasons why employees go the counteroffer route, particularly today when the job market is hot. But many recruiters and employers – myself included – are not fans of this practice for legitimate reasons that I’ll explain. Because you wrote me, I will offer my advice to you. But given that my readers include those in supervisory/management roles, I’m going to offer my advice to them, too.

Advice to job-seekers looking for a counteroffer

Answer: Don’t do it! Any employee who accepts a job elsewhere or shares word of an offer with his current employer always will be suspect if he chooses to stay.

Why? Because pay is just one of the factors that go into someone’s decision to leave. So, a counteroffer is just a temporary fix to what likely is a bigger and lingering problem.

While your company may decide to counteroffer because it wants to keep you, your employer likely will label you as someone who is ready to jump ship.

On the other hand, there is a time when it is appropriate to talk with your current employer about outside interests. That’s after you’ve started talking with a potential employer but before you have an offer. This is the time for a real and honest conversation with your current supervisor and HR.

Say, for example, you know you’re significantly underpaid for your job level, experience, etc. Do some research and present compensation comparisons, along with the opportunities available to you elsewhere. This could be enough evidence to prove your worth, or it could prompt an employer to do its own compensation analysis.

Same for an opportunity to move up. If you’re interested in a promotion or transition into a supervisory position and have opportunities elsewhere, share your interest with your current employer to determine whether you can move up without moving on.

Don’t play games, though. If money or opportunity aren’t going to make you stay even a year longer, then it’s not worth the angst, and it will hurt your professional reputation.

Thoughts on counteroffers for HR and employers

Answer: The problem with a counteroffer is that it happens after the damage is done. Companies should strive to be an employer of choice from the start of an employee’s tenure, offering competitive pay and benefits, well-trained supervisors, advancement opportunities, and a safe and engaging culture.

While the intention of a counteroffer – to retain a valued employee – might be good, the practice generally is not effective, and it can create ill will. After all, an employee already has made up his mind to hand in his resignation and accept a job elsewhere.

The result of an accepted counteroffer often is short-lived and not worth the drama for the employee or employer.