The rejuvenation of the job market in the Finance and Accountancy sector has without doubt gathered pace in the last six to eight months. One of the results has been an increase in job seekers willing to explore their options whereas before, many people were staying in positions in which they felt dissatisfied due to fears about the turbulent economic climate.
So, as an employee you have taken the plunge, explored your options, gone through the interview process and been offered an exciting new role. This is always a slightly nerve wracking time and many understandably feel the process of resigning from their current position to be a stressful one.
Submitting Your Resignation
When you sit down with your line manager and submit your letter of resignation, there is a sense of relief and the excitement of starting a new role can be indulged. However, what happens if the following day your employer presents you with a counter offer? What do you do?
This is a difficult situation in which to find yourself. On the surface, it appears to be in the employer’s interests to retain you; you are a valued employee. They are able to retain you within the business rather than have to progress once again through the recruitment process, which can be time consuming. You are in situ; you know the company and are an established member of the team whom they have already invested in.
It can be a tempting and very flattering offer. You are within your comfort zone; you know the business and the people, and a pay rise is being offered. At this stage, it is vitally important that you examine your reasons for leaving in the first place. If your motivation is more than simply remuneration and is based around a desire for career progression, or a disillusionment with the company, ask yourself the question; is this going to change or, by accepting an offer, are you simply placing a band aid on the real issue?
A Long Term Solution?
Being counter offered with a pay rise or a promotion will not necessarily resolve the underlying reasons that first motivated you to search for an alternative. In this instance we find that in many cases the employee will be once again be back on the job market within a few months, as the initial problem has not been resolved. In my own personal experience, I previously worked with a Management Accountant in a senior position who was very disillusioned with their working environment. We secured them a new position with a pay increase, and when they subsequently submitted their resignation, their employer offered to double the pay increase to keep them. They accepted the counter offer, however came back to me within five months looking for a new role, as the environment had not improved and the initial problem remained.
On the other hand, if your reason for leaving is purely motivated by remuneration and you feel that you are being undervalued either through the employer’s inability to offer an increase, or through a failure to recognise your worth, is it a good idea to accept a counter offer? On the whole I would still suggest that it isn’t. Using this process as means of forcing your employer’s hand should be avoided. It almost always causes a breakdown in trust and leads the employer to question your loyalty and dedication to the company. If they believe that you are capable of being disloyal it is doubtful that the previous levels of trust will ever be re-established, which can have implications for your long-term career in that company.
Communication is Key
If you do feel that a pay increase or promotion is justified I always recommend that you firstly have an open and honest conversation with your employer, laying out your justifications. Through open channels of communication it is much more likely you will be able to come to mutually agreeable terms that have fewer potential repercussions later in your career. If the employer is not able (and in the current economic climate many are not, through no fault of their own) or willing to negotiate in terms of remuneration then if you still wish to pursue the issue, consider your wider options and explore the market with a clear conscience.
John Richardson joined Alexander Lloyd in 2003, and as a Senior Manager within the organisation he currently leads the Accountancy and Finance divisions. He personally maintains a client database recruiting senior finance professionals on a permanent basis within the Accountancy and Finance sector and specialises with the recruitment of qualified level Financial Directors and Controllers for both blue chip and SME clients, and also recruits niche roles such as tax/treasury and corporate finance and audit.
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