Should You Accept a Counteroffer From Your Current Employer?

You’ve accepted (or are about to accept) a new job, and your current employer suddenly offers a raise to keep you. It’s flattering, and it can be the right move. But a counteroffer deserves a careful look.

Why employers make counteroffers

Replacing an employee takes time and money: recruiting, training and lost work while the job is empty. A counteroffer can be cheaper for the company. That doesn’t make it insincere, but it does mean the offer is partly about the company’s convenience.

Questions to ask yourself

• Was money the only reason I looked? If you were also unhappy with your manager, workload, growth or culture, a raise won’t fix those.
• Why did it take a resignation? If you’d asked for a raise before and been turned down, think about what will happen next time.
• Does the counteroffer match the new job’s total package? Compare salary, bonus, benefits, retirement match, remote work and commute (see our 401(k) match guide).
• What happens to my career path? Ask whether your title, responsibilities and future raises change too.

Possible risks of staying

• Your manager may see you as a flight risk.
• The raise may come out of future raises.
• You may have to back out of an offer you accepted, which can hurt that relationship.

When accepting can make sense

A counteroffer can be a good choice if you liked your job, the main issue really was pay, and the company also offers a clear path forward, such as a promotion or new responsibilities in writing.

How to handle it professionally

1. Thank your employer, and ask for the offer in writing.
2. Take a day to decide, not a week.
3. If you decline, keep it short and positive.
4. If you accept, call the new employer yourself and apologize sincerely.

Related: how to counter a job offer · pay transparency laws and salary ranges.

Header image: Photo: “handshake” by Broad Bean Media, BY-SA 2.0 (cropped).