Counter Offers: What They Are, Why Companies Use Them, and Why You Should Think Twice Before Accepting
You’ve done it. After a thorough job search, countless applications, and a nerve-wracking interview process, you’ve received a new and exciting job offer. You pluck up the courage to hand in your resignation, and then your employer presents you with a counter offer.
Suddenly, the decision you felt confident about becomes far more complicated. Should you stay? Should you go? Is this counter offer a sign that your employer values you, or is it simply a business tactic?
At Atkins Search, we speak to candidates navigating this situation every single day. In this guide, we’ll walk you through everything you need to know about counter offers in the UK job market, including why, in the vast majority of cases, our honest advice is to decline.
What Is a Counter Offer?
A counter offer is a proposal made by your current employer after you have handed in your notice or informed them you are leaving. The aim is to persuade you to stay.
Counter offers can take a number of forms, including:
- A salary increase to match or exceed your new offer
- An enhanced benefits package (additional holiday, private healthcare, pension contributions)
- A promotion or change in job title
- Flexible or hybrid working arrangements
- Promises of future opportunities
On the surface, a counter offer can feel flattering. Your employer is recognising your worth. However, it’s important to understand what is really happening.
Why Do Employers Make Counter Offers?
Understanding the motivation behind a counter offer is crucial to making the right decision for your career.
The Cost of Replacing You Is High
Recruitment is expensive. Research consistently shows that replacing an entry-level employee costs, on average, 33% of their annual salary. However, data from Gallup suggesting for senior or specialist roles, that figure can equal 50-200% of their annual salary when you factor in lost productivity, agency fees, onboarding time, and the impact on team morale.
When your employer makes you a counter offer, they are often doing a straightforward cost-benefit analysis. Offering you a pay rise is almost always cheaper than recruiting and training your replacement.
It Buys Them Time
Here’s something candidates rarely consider: even if you accept a counter offer, your employer is likely to begin discreetly searching for your replacement almost immediately. They know that your loyalty has been tested, and statistically, they know you will probably leave within the year anyway. A counter offer buys them three, six, perhaps twelve months to find someone on their terms.
Operational Continuity
Losing a key employee at the wrong moment can cause serious disruption. A counter offer is often a short-term fix to protect operational continuity, not a long-term commitment to your career development.
“A counter offer is rarely about your worth to the company in the long term. It is about the company’s needs in the short term.” – Senior Recruitment Consultant, Atkins Search
Are Counter Offers Successful?
- 80% of employees who accept a counter offer leave their employer within six months.
- 9 out of 10 people who accept a counter offer have left within 12 months.
- 50% of candidates that accept counter offers from their current employer are active again within 60 days.
- Only 38% of hiring managers reported not making counter offers at all.
- Vast majority of employees who accept counter offers report lower job satisfaction compared to those who moved on.
These are the overwhelming majority of outcomes. So why does accepting a counter offer so rarely work out?
Why Counter Offers Rarely Work Out for Employees
The Underlying Issues Haven’t Gone Away
There is always a reason you began looking for a new job in the first place. Perhaps you felt undervalued or simply found the role was no longer fulfilling you. Perhaps the company culture wasn’t right, or you were seeking a completely new challenge.
A salary increase addresses none of these things. The same colleagues, the same culture, the same management structure, and the same day-to-day frustrations will all still be there on Monday morning. The pay rise may soften the edges temporarily, but research consistently shows that within weeks or months, those original motivations resurface and often with greater intensity.
Your Employer’s Perception of You Has Changed
Once you have handed in your notice, the dynamic between you and your employer changes permanently. Even if they ask you to stay, many managers and colleagues will now view you as the person who tried to leave. Your commitment to the company is now in question.
This can manifest in subtle but damaging ways: being passed over for high-profile projects, excluded from long-term planning conversations, or being regarded as a flight risk when promotion opportunities arise. The trust, once fractured, is very difficult to rebuild.
The Broken Promise of Future Development
Counter offers frequently include promises that go further than salary, such as a promotion down the line, greater responsibility, a seat at the table. It is worth asking yourself: if these things were possible, why weren’t they offered before you resigned?
In many cases, the promises made in the heat of a counter offer are not followed through. Once the immediate crisis has been averted, the incentive to make good on those promises diminishes considerably.
You Will Likely Miss Out on an Opportunity
While you are deliberating over a counter offer, the employer who made you a new offer is waiting. Roles are not held indefinitely. If you decline or delay your decision, there is a risk that the opportunity is withdrawn, and you find yourself back in your current role with a modest pay rise, but without the fresh start you were seeking.
Accepting a counter offer and then leaving six months later may also mean burning your bridges with a company you had been excited about joining.
“The regret of not taking a new opportunity is often far greater than the short-term comfort of staying somewhere familiar.”
Should You Accept a Counter Offer? Our Honest Advice
The short answer, in the overwhelming majority of cases, is: no.
There is one narrow scenario in which a counter offer may be worth considering: if the sole reason you were leaving was dissatisfaction with your salary, and the counter offer resolves that to your satisfaction, and you are otherwise content in your role and your prospects at the company.
Even then, ask yourself these questions before making any decision:
- Why wasn’t this salary offered to me before I resigned?
- What does this tell me about how the company values its people?
- Do I trust that the promises being made will be kept?
- Will I feel comfortable at work once management know I tried to leave?
- Am I being offered this because they want me to stay, or because it is cheaper than replacing me?
If you have any doubt at all, the evidence strongly suggests you will be better served by accepting the new role and moving forward with your career.
How to Handle a Counter Offer Professionally
Receiving a counter offer doesn’t have to be uncomfortable. Here’s how to navigate the situation with professionalism and confidence:
Don’t Make a Rash Decision
Take 24 to 48 hours if you need to. A decision made under pressure is rarely the best one. Step back and return with a considered response.
Revisit Your Original Reasons for Leaving
Write down why you started job searching in the first place. Are those reasons addressed by the counter offer? Be honest with yourself. If even one significant reason remains unresolved, that is your answer.
Communicate Clearly and Respectfully
Whether you decide to accept or decline, do so professionally. If you are declining the counter offer and proceeding with your new role, thank your employer sincerely for the offer, be clear about your decision, and give the appropriate notice period. Maintaining a positive relationship will serve you well throughout your career.
Speak to Your Recruiter
If you are working with a recruitment specialist, speak to them before making any decision. A good recruiter will give you honest, impartial advice. At Atkins Search, we always prioritise what is right for the candidate’s long-term career, not a short-term placement.
How Atkins Search Can Support You
At Atkins Search, we are committed to providing honest, straightforward advice that serves your career. We work with candidates across a range of specialist sectors, including construction, consultancy, residential and engineering, helping them to find opportunities that are the right fit in terms of long-term fulfilment.
Whether you are actively looking for a new role or simply starting to explore your options, we are here to support you at every stage of the process. Explore all out current job opportunities.
Get in touch with the Atkins Search team today for a confidential, no-obligation conversation about your career.