What Happens If I Receive a Counter-offer from My Current Employer

If you are a top producing salesperson, you are more than likely than not to receive a counter-offer. 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.

As a salesperson, 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 already accepted an offer of sales employment from your new employer, it is unethical and in bad taste to withdraw your acceptance of their offer based on a counter-offer from your current employer. There may even be legal ramifications. However 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. One of the main reasons why salespeople are in the sales profession is for the recognition and rewards they attain by meeting or exceeding their individual sales goals. Compensation, rewards and recognition are the key factors behind motivating salespeople. Salespeople are rewarded for their efforts through their compensation (e.g. total target compensation) and recognized through incentive programs by receiving special trips, merchandise, awards and/or other perquisites. 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?
• Personal value and self-image. One of the characteristics of successful salespeople is their ability to stay positive in the face of difficult conditions and deal with rejection. They manage this by having a strong belief in themselves and their abilities. As a successful salesperson, you have a great deal of self-confidence and a certain amount of arrogance about your abilities and should ask yourself: Why is my employer suddenly willing to pay me “X number of dollars” today when I was only worth “X” dollars yesterday? What is the impact on my sense of pride? Do I feel that I have been “bought” and that I am a commodity? Do I run the risk of being perceived as “overpriced” in my employer’s eyes?
• 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?
• Reporting relationship. If your decision to move on was based to a large extent on having a difficult relationship with your immediate superior, ask: Will I have to report to a person I don’t respect? Can the employer make an exception for me? If the company makes an exception for me, will I lose the respect of my co-workers?
• Short and long-term career prospects. If you are content with sales as a profession and have no desire to move into sales management, 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? If you have management aspirations, ask yourself: Will I move from a sales capacity into a management capacity? Will the next management slot be mine? How long will I have to wait? Will I be responsible for coaching or mentoring junior salespeople? Will I be supervising people?

The above points are just a few factors to consider in the overall decision-making process. In the end, after weighing your answers to these questions and discussing matters with family, trusted friends and/or a mentor, you will need to make up your mind. Good luck with your decision!

©Sales Resource Centre. Canadian Professional Sales Association, 2002.

Research Fact
According to research surveys, 50-80 percent of employees that accept counter-offers leave their employer within six months of their acceptance. The reasons cited for their voluntary departure range from promises that have not been fulfilled to involuntary reasons such as termination and being laid off. Remember as attractive and flattering a counter-offer may appear, research indicates that once you accept a counter-offer, your long-term career prospects are at risk.

Source: Monster.com