The Perils of a Counteroffer

You're trying not to grin like an idiot, but the truth is, you're feeling pretty full of yourself. In this rotten, stinky, abysmal economy -- you've been offered a job when you aren't even unemployed!

OK, so now comes the time to decide: Do you accept the new job or try and get a counteroffer from your current employer? The truth is, your current job feels safe, and you're not 100 percent sure the new employer can offer you the same job security.

But still. It is more money and a better title, and it is really flattering to be wooed by a new company.

Well, maybe there's a compromise, you think. All you have to do is tell the boss that you've been offered a new job at a better salary and title, and see if he'll counter.

Hope you like snake pits, because once you've made that decision, you've just jumped into a big one.

“Most of the time, accepting a counteroffer is short-term fix for both the employer and employee,” says DeLynn Senna. “More than 90 percent of those who accept a counteroffer end up leaving the job less than a year after they accept it – either because the company lets them go or they leave on their own.”

Senna is executive director of permanent placement services for Robert Half International in Pleasanton, Calif., and I recently interviewed her for my Gannett News Service/USAToday.com column.

Senna says that while your boss may indeed offer you more money or better title to hang onto you, the truth is, he or she may only be doing this to buy time.

“An employer wants to minimize disruptions or lost productivity in this economy, so they make a counteroffer to keep the person,” Senna says. “But the trust has already been broken with the manager and the employee’s colleagues.”

Oh, yeah, your co-workers who may resent you nabbing more for yourself when they're likely to get a frozen turkey as a holiday bonus this year.

“These colleagues are going to know that you’re now making more money, and there is now a lack of rapport,” Senna says.

And as for your manager? Well, that chill in the air may have nothing to do with the office thermostat turned down to save energy.

"It’s always in the back of a manager’s mind that the employee has been disloyal" by even talking to another employer, Senna says.

“When it comes time for a promotion, the manager may give it to someone else, because he or she may be considered a more ‘loyal’ worker,” she says.

Ouch.

So, what to do when times are tough and you don't want to play this touchy situation the wrong way?

Senna says that you should first begin by thinking about why you thought about leaving your employer in the first place. Accepting a counteroffer, she says, may not fix the reason you were considering the exit in the first place.

“Getting a pay raise doesn’t change the fact that maybe you’re not getting a chance to work on certain projects or can’t get along with the boss. Those problems still exist,” she says.

That’s why Senna says it’s critical that anyone considering a counteroffer from an employer should think about:

• Trying to make it work. “Make sure you do everything possible to improve your current situation before you think about leaving. Try and get the raise on your own, address the poor communication with your manager, try and get those good project assignments, etc. If you can change the one thing that makes you want to leave, then try and work it out.” While a new job offer may be exciting, consider that in this economy, it’s difficult to know who is financially solvent and who is not. You may be jumping ship to a company in trouble. Further, you will be leaving “goodwill that has built up” in your current job, Senna says. “It’s much more risky to leave.”

• Standing firm. If you do your research and believe that the job offer is worth taking, then tell your employer and don’t waffle when a counteroffer is made. Senna suggests saying something like: “I appreciate it, but I’ve made a commitment. I’ll do what I can to tie up loose ends here before I leave.” Senna adds that employers may try change your mind while you’re still on the job, but you must be polite but firm about declining a counteroffer.

“Think about it: Why do you have to threaten to leave before being heard? That’s a real red flag right there,” she says.

• Keeping your word. “You’re running a real risk of damaging your professional reputation is you renege on your agreement with a new employer to accept a counteroffer from your current employer,” Senna says. “Remember: Your reputation is the most important asset you have.”

In this economy, is it foolhardy to accept a counteroffer? Are there ways to make it work?





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Five Reasons It's a Good Idea to Stay on a Sinking Ship

There are always some sure-fire ways that you can tell your company is in trouble.

The floors haven't been vaccumed in recent memory because the cleaning crew is now one 80-year-old woman who comes in every other month to dust. You are asked to re-use ovenight envelopes -- and not because the boss cares about the company's carbon footprint. Unknown people are seen going into top brass offices and holding closed-door meetings for hours. You catch the boss working on his resume.

All signs that the ship is sinking, and the rats are headed for the exit. Time for you to join the exodus, right?

Not so fast.

Have you ever thought about leaping onto that sinking ship because it could be the smartest career move you've ever made?

Sounds crazy, but it has worked for plenty of people. I once interviewed a woman whose company was in deep financial doo-doo and was doing everything but selling the copy machine on eBay in order to survive. But while others were frantically sending out resumes, she decided to stay put. She volunteered to take on duties left by departing employees, and soon had access to key managers and top decision makers.

The woman told me that the organization became much more open to new ideas, including ones she proposed. She took on duties that challenged her, and was considered a key player when things started to turn around. While she left a year later, she says it was those skills and opportunities presented by the floundering employer that taught her the most.

So, before you grab the resume and head for the exit of a troubled employer, consider:

* The opportunity to grab a dream job. Even if it's only offered on a temporary basis, the chance to fill a position that greatly interests you isn't an opportunity that comes along every day. It gives you a chance to learn the needed skills and really see if it's something you want to pursue.

* The chance to work with others who are at the top of their game. If you're a new employee, chances are it might be years before you gain access to some key people. Even if these people also depart, any chance to work with them for a short time and form a professional relationship could be key in netting you future opportunities.

* The atmosphere may provide more education than an MBA program. Companies that are in trouble can adopt an "anything goes" style, allowing you to try out a variety of skills and learn at a rapid pace. It's a go-ahead-and-try-it environment, and that's something many MBA students would kill for.

* You're going to be on center stage. Floundering companies don't have time to handhold anyone. You're going to be asked to deliver immediately, and your limitations will be only what you make them. Sleep? Who needs it, right?

* It can help you set up your own company. Sometimes learning what not to do is the best lesson . There are lots of successful people who will tell you they learned most from their failures. Just think of how much you'll learn about what to do -- and what not to do -- being on the front lines of a failing enterprise.

How about it -- do you think the possible rewards make it worth the risk to stay with a failing company?





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Uh-Oh: You May Not Be Worth What You Thought

If you were offered a job you really wanted, would you be willing to accept less money than what you expected?

That's the question many people are facing these days, even in those positions that were in such high demand they were supposedly bulletproof.

According to a JobFox survey, some median annual salary ranges dropped $10,000, compared to a month ago. Some examples include software design/development; product management; networking/system administration; finance; and government contracts administration.

These numbers reflect what the Department of Labor is saying, that wages are failing to keep up with inflation. That's pretty grim news as we face rising prices for energy and food, while coping with huge credit debts.

Still, there are some ways to cope in this economy:

1. Don't become overfocused on wages. Look for the growth opportunities in a job. You want a job to increase your knowledge and skills, and make you even more marketable in the future.

2. Ask for reviews. When you take a new job, ask for a review in the first 90 days to review your performance. This helps set the groundwork for a salary bump before your annual review. If you're already in a job, ask your boss to set up some quarterly meetings to review where you stand and make sure you're on target to meet goals.

3. Negotiate for other compensation/benefits. If an employer isn't offering you the salary you desire, ask for training opportunities -- either in another department, or to attend an industry event where you'll not only learn something, but make valuable professional contacts. As for other benefits, I know one worker who nabbed a good laptop from her company for $75 when the employer decided to upgrade. Make sure you're friendly with the office manager and the IT people so you know when good stuff may become available for purchase. Or, see if you can work from home at least one day a week to save on fuel costs. Some employers will pay the cost of monthly Internet service if you put in work time from home, or pay your cell phone bill if you spend time using it for business. The point it to be creative in presenting win-win options to your boss.

4. Ask about tuition reimbursement. Some companies still offer the benefit, and any education is worth the time. Recent schooling always looks good on a resume, and many companies cannot offer higher salaries unless you meet certain educational or training requirements.

Still, the question of whether to accept a job at a salary you believe is too low is a tough one. In this economy, it can be difficult to negotiate when employers are cutting back not only salaries, but positions.

Do you think it's a mistake to accept a job for less money than what you desire -- or is this a salary trend we must learn to accept?




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