We speak about counteroffers regularly! In this job market, they tend to happen frequently when people go to resign. This week, I am not here to talk about how to prepare for them or the reasons why you should not accept one. Rather, this week, I want to talk to you about what happens when you do accept one, and then embark on your job search within that same year.
And unfortunately, we see this way too frequently. People accept a counteroffer, and then within a short period of time, they are back on the job market, searching for a new role. However, there is one big difference this go around- the salary they are seeking is highly inflated!
Here’s why – the first time you begin your job search and are given an offer, you are typically offered a salary, which is higher than the salary you are currently on. Let’s say for example, you have 2 years of experience and are earning 45k, and you get a job offer for 50k.
Now, you go to resign, and your current firm matches that salary. You accept the counteroffer of $50,000.
In that moment, with your specific years of experience, 2 in this example, your salary is typically at the top range for someone of your years of experience.
Now, 6 months later, when you realize that you are still not satisfied in your job, you begin job searching AGAIN. You now have 2 and a half years of experience under your belt and your seeking a salary of 55k. Not only do you want something which addresses all your TRUE job motivators, but now you also want more money. This will put you well above the market rate for someone of your years of experience, ultimately pricing yourself out of the market.
What this also does is drastically limit which firms you can go to. Firms which could have offered you ALL the things which would have satisfied your career motivators, now can no longer afford to bring you on board. Your other option in some cases, is accepting the job at a new firm, although making a lateral move, with no change in your current salary.
Therefore, if you have accepted a counteroffer and are back job searching within the year, it is important to be aware of appropriate salary ranges for someone with your years of experience. Assuming you are serious about changing jobs this time around, you may need to be prepared to flex on your salary requirements.
Thanks for reading! If you have any questions or would like to discuss further, be sure to contact us.
Happy Job Hunting and Good Luck!