Why You Should Never Accept a Counter Offer
What Is a Counter Offer?
A counter offer is a formal proposal made in response to an initial offer, which replaces the original terms with new ones. In the job market, it often happens when your current employer responds to your resignation by offering improved terms—like higher pay or benefits—to retain you. Counter offers can also occur during hiring, when a prospective employer adjusts their initial offer .
Key aspects include negotiation over salary, benefits, responsibilities, and conditions. The counter offer voids the previous one and starts a new negotiation—until one is formally accepted.
During the pandemic, you got to work remotely… and you loved it. Then a few years in, the company demanded you return to office.
What the hell? Why? You’ve been your happiest and most productive - and now they wanna tell you it’s the best thing for you and the company!
No way!
So you started looking for a job elsewhere and after a few months you found something fully remote, but the salary wasn’t quite as good as your current one.
But it’s not about the money, it’s about what makes you happy - and that’s having the freedom to choose where you work and to have a life outside of work.
So you accept.
You excitedly hand in your notice and wait a few days for everything to be finalised.
THEN, your current company decides to counteroffer you…. a 10% increase in your salary!
You’re now second-guessing what to do and considering accepting the counteroffer to get more money.
Did you know about 46% of employees who accept a counteroffer leave anyway shortly after accepting?
Only 4% stay less than 3 months and 21% stay between 3-12 months.
Only 29% of employees stay longer than twelve months after accepting a counteroffer.
My take?
Stay true to what you want!
Think about all the things you’d sacrifice by going back to the office, getting up an hour earlier to get ready, being stuck in rush hour traffic, sitting in a cubicle from 9-5…
Is that worth it for just a 10% salary increase?
Remember why you wanted to leave in the first place!
YES – I WANT TO WORK REMOTELY!
Why You Should Never Accept a Counter Offer
Accepting a counter offer is often a short-term win with long‑term downsides:
Underlying issues aren’t addressed – Salary increases don’t resolve deeper problems like career stagnation, poor culture, or lack of promotion, which are the original reasons you decided to leave.
Trust breaks down – Employers may view you as disloyal after the resignation process, limiting future growth, raises, and opportunities.
High turnover statistics – Studies find 80% of employees who accept counter offers leave within 6–12 months.
Reactive, not proactive – A counter offer typically results from the risk of losing you, not from recognizing your value earlier.
Unless your core concerns are addressed long-term, accepting a counter offer is likely a temporary morale booster, not a sustainable solution.
What to Do Instead of Accepting
If you receive a counter offer, follow these steps:
Pause and reassess – Take time to revisit your reasons for leaving. Were they about more than compensation? .
Request clarification – If you’re considering staying, ask your manager to outline concrete changes (new responsibilities, career path, flexible working arrangements). Ensure it goes beyond a superficial raise.
Compare offers holistically – Include salary, benefits, work-life balance, growth potential, company culture, and job satisfaction before deciding.
Maintain professionalism – Decline or negotiate the counter offer respectfully. Thank them, explain your decision, and preserve integrity—this helps maintain networks and reputation.
What About Exceptions?
In rare cases, a counter offer may be worth accepting—but only when:
Your reasons for leaving are fully addressed (e.g., clearer career path, mentoring, remote flexibility).
Improvements are formalized, with written agreements on role changes and timeline.
It aligns with your long-term goals, not just short-term compensation boosts.
Even then, proceed cautiously—employers who counter only when you resign may still perceive you as unreliable or high-risk.
FAQ
-
A counter offer is a response to an initial offer, proposing new terms instead of accepting the original. In job settings, it usually happens when an employee resigns and the employer offers better pay or conditions to keep them. A counter offer replaces the original and begins a new negotiation.
-
A counter offer occurs when one party rejects an initial offer and proposes new terms. For example, if you’re offered $90,000 for a job and you ask for $100,000 instead, that’s a counter offer. It legally cancels the original offer and starts a new round of negotiation.
-
Accepting a counter offer can seem appealing but often leads to long-term issues. Most employees who accept leave within a year due to unresolved problems like poor culture or lack of growth. Counter offers may offer more money, but they rarely fix the original reasons you wanted to leave.
-
In contract law, a counter offer is a rejection of an original offer combined with a new proposal. It legally voids the initial offer and creates a new one for negotiation. No contract is formed until one party accepts the final terms without conditions.