Dear Stephen,
I'm a project manager at a large Steelcase dealer located in a metropolitan market. I heard about a job like mine open at a dealer that is a competitor and I decided to apply. I interviewed a couple of times and found that the job was the same thing I'm doing but paid much more. It was almost too good to be true.
Ultimately, I received an offer, and I was very torn because I like my job. I discussed it with my husband, and I decided to resign my current job and take the new one.
When I put in my resignation, both my boss, who has always been great, and the owner of the dealership, who really likes me, wanted me to stay. I was very transparent with them about what my motivation was for leaving — I told them I wasn't out looking for a new workplace, but the money was so compelling, I had to pursue it. The new job also has very nice people; although it was going to pay me 30% more than I was making, my boss and dealer owner decided to match the money, and I decided to stay put.
The situation was cut and dried; I wasn't playing games. I was completely honest. And I went back to work thinking everything would be fine.
I'm aware that the conventional wisdom is that if someone accepts a counteroffer, their current boss may become resentful, and ultimately they will get fired.
But with the new dynamic of unemployment being the lowest it's been in 50 years, and employers valuing the employees they already have, I did not feel this was going to happen with this dealer at all. The problem is this—
My boss consciously has me working much harder and has given me almost double the amount of projects; he continues to pile on the work even though he can see I'm at my maximum capacity. I have no fear of being fired, but I do fear getting burned out and worked to death at this new pace they have me going.
To me, finding a new job was the only way to get what I believed was a well-deserved merit increase, but it's totally backfired — I think my boss has taken it personally that I even contemplated leaving and is just piling on way more than I can handle.
Now I really do want to quit, but I'm sure the other job is no longer on the table. What's your advice?
Signed, Counteroffer Quandary
Dear C.Q.,
Welcome to the new normal.
Many years ago, I would tell candidates to beware counteroffers from your boss because, statistically, those who accept counteroffers are fired in six months! When you quit a job, it's like firing your boss, and they resent you. (Bosses have feelings too!) All of this has changed over the past three years as we've had the lowest unemployment, and as you correctly pointed out, good people are hard to find so employers tend to appreciate why they should make a counteroffer these days.
The truth is owners, managers, and HR people are more aware that the cost of hiring someone new is through the ceiling. I'm referring to the time it takes to recruit and train, and the general startup time for anyone to get up to speed at a new job costs the company a ton of money. The boss is better off matching or exceeding the new salary you've been offered when you resign, just to save those costs for the company and keep a valued employee like you.
There's a new dimension with this today, which is exactly what you're going through, which is bosses don't want to fire you; they just want to get more work out of you for the extra money that they're paying. They perceive it as you made them give you a significant raise, and so they plan to get their money's worth. In the old days, I would tell you you're going to be fired in six months tops. Today it's more likely that you'll just be working much harder so long as you remain at that company. The boss, whether correct or not in their thinking, still feels resentful about having to be put in a position to give you that raise.
Here's the better way to get a raise:
When and if you feel you're deserving, and if your company doesn't have an annual performance review process, you should ask for a meeting with your boss and explain why you feel you deserve an increase in your base salary. This is a much better solution than going out and finding another job with more money to get a counteroffer, if you're happy in your current job as is.
If you want to be a little more aggressive, update your resume including your current job and all you do and what you've accomplished, then bring that into the meeting with your boss. Be careful not to present it as a threat — in the absence of a formal performance review, it's just talking points for the meeting.
[Note to bosses reading this column:]
The burden should not be on your employee to even have to approach you, if you do not offer annual performance reviews. The best places to work recognize when they have quality, hardworking employees, and they award accordingly with raises or bonuses as years go by. This is just a regular feature of positive workplaces.
Not to mention, with the cost of living continuing to go up, employees need to feel appreciated and secure in their jobs... Otherwise, why are they working for you?
Signed, Stephen