Dealing with an approach from a competitor
Approach the situation with delicacy, tact and caution. You do not want to burn any bridges with your current employer without a firm offer from the competing firm. Furthermore, you do not want give the appearance you are “holding them hostage” for more money to entice you to stay on.

Q: I am currently a regional manager at a financial services firm. My firm is going through significant leadership growing pains however, they are well capitalized. The problem is I am overworked and consistently put in ten hour days. Even so, I am falling behind in my work and have not been provided with the assistance I requested, and was promised (2 months ago), by my head office in Toronto.

I have now been approached by the head office of a competitor. I respect their organization. They are offering me a significant advancement in my career (directorship). We have not discussed finances yet. My question is: If they make an acceptable offer how do I go about discussing this with my current employer, while ensuring I obtain the greatest benefit? In the past, when someone has resigned, our firm has stepped up and made a counter offer. In some cases, the bidding has worked out well for the employee in question. In others, the employee has become bitter over the fact that the raise they requested previously and were denied, is suddenly available. What can I do to ensure I am treated fairly by both parties without making them resent me, or vice versa, later? Does one show their hand to their current employer or should one keep mum on the figures and let the current employer make an offer of what they think one is worth? Obviously, more money is a good thing but at what cost? Thank you for your time.

A: A counter-offer may be made by your current employer if he learns that you are entertaining an offer by another employer or upon receiving your resignation in hopes that you will stay with the company. Given your company’s previous history with these types of situations, there’s a good change they will make you a counter-offer.

As a manager you need to handle this situation carefully. Counter-offers are flattering in the sense that they make you feel indispensable and that your employer will offer everything and anything to keep you. Banish this thought immediately. If you have not made up your mind to accept the offer of sales employment, you have to make a decision.

The following is a list of points to consider when evaluating your current employer’s counter-offer:

• Personal desire. While a counter-offer may be flattering, you need to ask examine the reasons behind your decision to make a job change. Ask yourself the following questions: “Is this what I really want? Was my decision to make a job change made in haste or after careful examination of my situation and prospects? Has anything about my reasons for wanting to move changed? Will the move advance my career, give me more time with my family, or involve less travel? Will I be happy once the “glow” of receiving more money or appreciation wears off?”
• Money. Compensation, rewards and recognition are the key factors behind motivating salespeople. If money or not feeling appreciated for your efforts are the primary reasons behind your decision to move, you might be happy with accepting the counter-offer.

Ask yourself: Am I being offered a higher salary? A move to another location? A promotion? Is this a ploy to buy more time for my employer to locate and select my replacement?

• Relationship with employer. It is naïve to think that your relationship you’re your employer will remain unaltered, so ask yourself: Will I enjoy the same level of trust with my employer as before or will my loyalty always be suspect? If there are future cutbacks or reorganizations will I be the first to go because of concerns about my loyalty? Will my employer turn on me in the future and do I run the risk of being overpriced and unemployed? What are my long-term career prospects with the company? Will there be any change in my status? Will I be transferred to another territory (e.g. lateral move) or lose accounts?
• Short and long-term career prospects. If you are content with your present management position and have no desire to move into higher up, ask yourself: Will my responsibilities be expanded? Will I be promoted and when? Will I still be entitled to take advantage of professional development and educational opportunities? Will the company “support” me if I decide to pursue professional sales certification or an advanced degree?