Should you accept your boss’s counteroffer to stay at the organization? Dan and Alison answer your questions with the help of Leigh Thompson, a negotiations professor at Kellogg School of Management. They talk through what to do when you’re presented with a counteroffer, you’re considering what you would need to stay at your company, or you want to use a job offer to get a raise.
From Alison and Dan’s reading list for this episode:
HBR: If You’re About to Take a New Job, Should You Consider Your Boss’s Counteroffer? by Kelly O. Kay and Michael Cullen — “In a recent national survey we conducted about best practices in resignation, nearly 40% of senior executives and HR leaders alike agreed that accepting a counteroffer from a current employer will adversely affect one’s career. Nevertheless, some 78% of senior executives and 80% of HR leaders indicated that it is sometimes acceptable to embrace a counteroffer.”
Book: The Mind and Heart of the Negotiator by Leigh Thompson — “Before you begin negotiating or contemplating a counteroffer, determine who in the company has the ability to negotiate. Generally, those persons higher up in the organization are the ones who negotiate and the ones who care most about hiring good people. You should be well-versed about the advantages and disadvantages of negotiating with an intermediary, such as a human resources manager.”
HBR: Why People Quit Their Jobs — “Researchers agree that preemptive intervention is a better way to deal with employees’ wandering eyes than waiting for someone to get an offer and then making a counteroffer. CEB’s data shows that 50% of employees who accept a counteroffer leave within 12 months.”
HBR: When the Competition Is Trying to Poach Your Top Employee by Rebecca Knight — “On the surface, presenting your employee with a counteroffer seems like an obvious, easy way to make them stay. But, warns Sullivan, counteroffers are often counterproductive. ‘If someone has made the decision to quit, they’re unhappy. By giving a counteroffer, you’re paying to keep an unhappy worker.’”