As a quick Google search will show you, the statistics don't look good for accepting that counteroffer. Studies show that of those who said yes when their employers asked them to stay, 9 out of 10 had left the company within a year and 50% were already looking for a new job after only two months.
A counteroffer functions as both a rejection of an offer to enter into a contract , as well as a new offer that materially changes the terms of the original offer. Because a counteroffer serves as a rejection, it completely voids the original offer. Thus, the original offer can no longer be accepted .
Accepting a counter-offer might leave your employer questioning your commitment and dedication to the team, which can impact future opportunities and relationships within the company. Career Progression: Accepting a counter-offer might stall your career progression within the company.
If you come across as entitled, demanding, or adversarial, the employer may reject your counteroffer, or worse, rescind their original offer and move on to someone else,” warned Cole. “Also, don't ask for more than a few days to think things over.
In any case, changes made as a result of a counter-offer may appease you in the short term, but rarely last for the long run. Statistics show that if you accept a counter-offer, it's still extremely likely that you'll voluntarily leave or be terminated within 6 months to a year.
It's common for prospective employees to accept whatever offer the would-be employer puts forth without negotiating for more. Unless the employer explicitly stipulates that their offers are nonnegotiable, that's typically a mistake.
For most entry-level positions, the lower start of the range will be the most appropriate pay bracket. If the salary offered is within the low range for similar positions, consider an initial counteroffer 10-20% higher, and if the salary offered is within the average range, consider a counteroffer 5-7% higher.
You should never accept a counteroffer from your current employer after submitting your notice. Accepting an offer to stay with your current company will leave you feeling dissatisfied, unfulfilled, and stressed out. Bet on yourself by staying true to your decision to leave and explore new opportunities.
Once the counteroffer has been accepted, the buyer and seller then sign a contract. The buyer must secure financing, and the seller must complete any repairs stated in the agreement.
Ask for feedback on why the counter offer was rejected, and consider whether there's room for compromise. This demonstrates your willingness to engage in a constructive dialogue and shows that you value the relationship with your employer beyond the immediate issue of salary.
The Common Law's Mirror-Image Rule
The rejection terminates the offer, and the counteroffer restarts the contract-formation process, presenting terms that the recipient is free to accept or reject.
Accepting a counteroffer can lead to a sense of mistrust, making it challenging to rebuild a positive working relationship. Your loyalty could come into question, potentially affecting future assignments and promotions.
Next, make your case for a higher salary by highlighting your experience and skills. Ideally, you should also provide market research that supports your request. Be specific about the amount or range you're seeking, and remain open to discussing other forms of compensation, such as bonuses or additional benefits.
You may gain an improved sense of self-worth
When employers make a counteroffer, it often means that they value your contributions and don't want you to leave the company. You may also gain a renewed sense of appreciation for the company where you work, which can increase your overall job performance and satisfaction.
Can you really lose a job offer by negotiating salary? Well, yes and no. It's actually a rare occurrence because employers expect people to negotiate when receiving a job offer. But it still happens as not all employers are the same.
Scenario One: Offer Is at or Above Your Minimum
The rule of thumb when you negotiate salary with a counteroffer is between 10% and 20% of the offer amount. If you like the job and would accept the first offer rather than pass on the job, a counteroffer of 10% to 15% above the initial offer is not too aggressive.
Despite what you may believe, declining a job offer you've already accepted doesn't necessarily kill your chances of ever working with that employer. But mishandling the situation could close the door on future opportunities. So be sure to express your gratitude and appreciation for the offer.
Try a variation on the following: “Thank you so much for the offer. I am quite excited and intrigued by the position and the opportunity to work for such a great company. However, the salary is lower than I was expecting, considering my background and experience.
On the low end, 10% is enough to make a counter worthwhile, but not enough to cause anyone any heartburn. On the high end, 20% is a pretty big difference between their offer and your counter, but it's not so big that it will come across as excessive when used in the right situation.
Final answer:
A counteroffer is a response to an original offer that proposes different terms and effectively terminates the original offer. The party making the counteroffer takes on the role of the offeror, and the counteroffer must be communicated to be valid.