Accepting a counter-offer from your current employer, after you have resigned, is very high risk.
Companies in Indonesia, when they are about to lose a critical member of their team, will often present a counter-offer.
Their aim is simple — They want to solve Their short-term problem.
Don’t get confused — A counter-offer is Not designed to fix Your issues.
What is a Counter-Offer: Explained
A counter-offer takes place when your current employer, knowing that you wish to resign, provides you with incentives to stay.
Typically this means a pay increase, or a promotion — and most certainly nice words.
In essence, you leaving to join a new company causes your current employer a big headache, they have a big hole to fill — so they do their best to try and keep you.
In Indonesia, counter-offers are unfortunately very common.
That’s because for a lot of executive roles there is still a significant talent “supply and demand” issue.
The supply of top-class professionals is relatively restricted and at the same time demand from companies for that type of professional is high. This is especially true for high growth industry sectors.
“In any given moment we have two options: to step forward into growth or step back into safety.” Abraham Maslow
As executive headhunters for the Indonesian market, when a candidate is dealing with a Counter-Offer situation, our advice is very clear – say “No Thank You”.
Why is that?
Because accepting a counter-offer doesn’t fix any underlying problems.
Counter-offers are simply a band-aid.
When companies provide a counter-offer they are thinking about their corporate needs alone, not what is best for the professional.
The business is worried about the time required — and the cost involved — to find a good replacement.
It’s that simple.
Statistically, 4 out of 5 people who accept a counter-offer from their current employer, will leave or be asked to leave within a year.
Ultimately, accepting a counter-offer is a short-term solution to long-term issues.
Why People Apply for A New Job
- Feel stagnant in current role and seek new challenges
. - Wish for further professional development and career growth
. - Believe they are underpaid or under-appreciated at current firm
. - Seeing slow or no career progression, don’t see advancement
. - Bored with the current job scope, feel that every day is the same
. - Believe that there is a “glass ceiling”, it will be hard to advance in current company
. - There is a difficult political culture at work
. - They are not well suited to the corporate culture
. - Have a difficult relationship with their current boss or colleagues
. - Long travel time to their place of work
. - Don’t see family enough. A bad work-life balance
Whatever the reason(s) a professional has for exploring new job opportunities, most of the time the person has already tried to resolve any underlying issues.
Certain things though are of course beyond anyone’s control… And when this happens, people start to look outside and apply for new roles.
10 Reasons Why You Should Say “No” to a Counter-Offer
1. If you accept a Counter Offer – nothing actually changes at your current firm.
Except maybe your salary or title.
The items that led you to apply for new job opportunities in the first place remain the same.
Things don’t change overnight.
2. Your future employer sees a potential in you that your current firm does not.
Taking on a new senior-level hire is high risk.
If a new company wishes to bring you on-board, to take that risk and invest in you, why not seize the opportunity?
3. Great things never come from staying within your comfort zone.
You may feel familiar and comfortable at your current company, but are you satisfied?
Often change will bring personal growth and transformation.
4. If a Counter Offer involves a pay-rise, why didn’t it happen before?
If your current employer is suddenly willing to increase your salary, because you “threaten” to resign, then logically speaking they were knowingly underpaying you before.
5. It likely means no pay-rise next year.
Most companies have salary budgets for each position in their organisation.
If they increase your pay under a counter-offer situation…
It may mean no / low salary adjustment at your next review. Would you be happy then?
6. If you accept a counter offer, trust won’t be the same.
Your resignation shows that you are willing to move on.
Naturally it is interpreted as a “lack of loyalty” by your current employer.
They will question if they can count on you.
7. You will feel “Bought” not “Rewarded”.
People who accept a counter-offer from their current company often end up feeling that they have been “bought” vs “rewarded”.
This dissatisfaction will eventually affect your sense of belonging to the business.
8. 80% of people who accept a counter offer re-start their job search within 3 months.
You may genuinely still do your best for your current employer, but your boss and co-workers may treat you differently… As you have shown a “lack of commitment”.
9. You are likely Top of List if the company needs to downsize.
If your current company needs to cut costs / remove headcount, your “lack of loyalty” will likely put you at the top of the list for retrenchment.
10. Counter offers are typically just a “delaying tactic” by your current employer.
Basically, they give your current employer time to find a replacement for you — in a timescale that works for them… at a lower salary.
Summary — Accepting a Counter-Offer is High Risk
Once you have taken the step of accepting a new career opportunity — for very good reasons that you have thought long and hard about — it is important that you stay strong and firm during the resignation process.
You have every right to leave a company and pursue new personal growth and career objectives.
Remind yourself why you have accepted a new job offer — all the good reasons.
Don’t let your current boss manipulate you, confuse you or try to now suddenly “reward you”.
It just means that previously you have been under-appreciated.
ProCapita Headhunter Indonesia: Join Our Professional Network
For experienced candidates that would like to join ProCapita’s market-leading network of 450,000+ executives in Indonesia and stay informed about exciting career opportunities:
👉 Please confidentially Submit Your CV here.
We shall reach out to you whenever working on any relevant senior-level hiring need.
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