Should You Accept a Counteroffer? A Decision Framework

You have a new job offer, you hand in your notice, and your manager asks you to stay, often with more money attached. A counteroffer is your current employer's offer of better terms, made after you resign or mention another offer, to persuade you not to leave. This guide gives you a framework for deciding, the risks on both sides, and what to say to each employer.

This is a different situation from negotiating with the employer that made you the new offer. For that, see our job offer negotiation guide.

Should you accept a counteroffer?

Accept it only if it solves the problem that made you start looking, and only if you would have been glad to stay on those terms had they been offered without your resignation. If the counteroffer only changes the pay and the reason you were leaving was something else, the problem usually comes back.

Pay is often only part of the story. In a Pew Research Center survey of US workers who quit a job in 2021, 63% said low pay was a reason, 63% cited no opportunities for advancement and 57% said they felt disrespected at work; people could name more than one reason.^⁠[1] A raise can fix the first of those. It does nothing on its own for the other two.

How do you decide? Use the Stay Test

Answer five questions honestly, ideally in writing, before you reply to anyone. We call it the Stay Test.

1. Does it fix why you started looking?

   Write down the reason you began applying. If it was pay, a raise may genuinely solve it. If it was your manager, a lack of growth, the work itself or how you were treated, check whether the counteroffer changes that specifically.

2. Would you have stayed for these terms without resigning?

   Imagine your manager had offered this in your last review. If you'd have been delighted, the offer may be right for you. If you'd still have kept looking, it isn't.

3. Is it concrete and in writing?

   A promise to "look at your title next year" is not an offer. You need the salary, title, responsibilities and start date, confirmed in writing.

4. Can the working relationship recover?

   Your manager now knows you were ready to leave. Consider whether you trust them to treat you fairly for promotions and projects, and whether you'd feel comfortable staying.

5. Does the new job still win on its own merits?

   Compare the two jobs side by side, not just the two salaries. If the new job is better on the things you care about most, a matching salary doesn't change that.

If the answer to either of the first two questions is no, decline. If the third is no, don't decide until you have it in writing.

To compare the two jobs, score each one on the factors that matter to you:

The questions you asked during your interviews with the new employer are useful here. If you asked about the team, the first few months and the growth path, you already have most of the information; our guide to questions to ask the interviewer lists the ones that matter most for a decision like this.

What are the risks of accepting a counteroffer?

The main risks are that the original problem returns, that the relationship with your employer changes, and that you lose the other opportunity for good.

• The real problem stays. If you were leaving for growth, recognition or a different kind of work, more pay doesn't change it, and you may be job hunting again soon.
• Trust may shift. Some managers will see you as likely to leave and plan around that, which can affect projects, promotions or how much they invest in you.
• The raise may be brought forward rather than extra. Ask how the new salary affects your next pay review, so you know whether it is additional or simply early.
• The other door closes. The new employer is unlikely to come back to you soon after you have turned them down at the last moment.
• It may be a short-term fix for them. An employer facing a sudden gap may want time to plan a handover. Judge the offer on whether it reflects a lasting change.

None of these is certain. Some counteroffers come with genuine change, such as a new role that was already being planned. The Stay Test helps you tell the difference.

What are the risks of declining?

The main risk of declining is the uncertainty of any new job: you can't be fully sure how it will turn out until you start. You also leave colleagues and knowledge you have built up.

Moving can pay off, though. In the same Pew survey, workers who had quit and were now employed elsewhere were more likely than not to say their new job had better pay and more opportunities for advancement.^⁠[1] That is a snapshot of one group in one period, not a prediction for your situation, but it suggests leaving is often a reasonable choice rather than a gamble.

Should you use another offer to get a raise?

Only if you are genuinely prepared to take the other job. Announcing an offer, or resigning, as a bluff can backfire: your employer may simply accept your resignation. In the UK, for example, if you resign and then change your mind, your employer can choose whether to accept your resignation or not.^⁠[3]

If what you really want is more pay or a promotion where you are, ask for it directly, with evidence of your results and market data. Our salary negotiation templates include an email for asking for a promotion and raise, and our salary guide covers how to research what your role should pay.

What should you do before you resign?

Get the new offer confirmed and unconditional, and decide in advance what, if anything, would make you stay. A conditional offer, for example one that depends on references or other checks, can still be withdrawn; UK government guidance tells employees to wait for an unconditional offer before handing in their notice.^⁠[2]

1. Get the new offer in writing

   Check that any conditions, such as references or background checks, have been met.

2. Decide your position before the conversation

   Write down whether any counteroffer could change your mind, and what it would need to include. Deciding now stops you being swayed by the moment.

3. Check your notice period

   Your contract sets it. In the UK the legal minimum is at least a week's notice once you've been in the job for more than a month, but many contracts require longer.^⁠[3]

4. Resign in writing

   Tell your manager in person or by video first, then follow up with a short written resignation that gives your last working day.

A resignation letter only needs a clear statement that you are leaving, your last working day and a thank-you. Our sister site Resumeza has a free resignation letter generator that works out your last working day from your notice period.

How do you respond to your current employer?

Thank them, ask for any offer in writing, and give a clear answer by a specific date. Keep it short and polite whichever way you decide; you may want a reference from this manager later.

Thank you, I appreciate you making the effort, and I don't take it lightly. Could you send me the details in writing? I'll give you my answer by Thursday.

Thank you for the offer and for everything I've learned here. I've thought about it carefully, and I've decided to go ahead with the new role. My decision is final, and I'd like to focus on making the handover as smooth as possible before my last day on [date].

Thank you, I'd like to accept and stay. To confirm what we discussed: a salary of [amount] from [date], the title of [title], and responsibility for [area]. Could you confirm this in writing so I can let the other company know today?

If you accept, raise the issue that made you look as well as the pay, and agree how you'll both know it has been addressed, such as a review date or a defined project.

How do you respond to the new employer?

Tell them your decision as soon as you have made it, briefly and politely. If you are staying, a short phone call followed by an email is the most courteous way; don't leave them to find out from silence.

Thank you again for the offer and for the time your team spent with me. After a lot of thought, I've decided to stay in my current role, and I wanted to let you know straight away so you can move forward with other candidates. I'm sorry for the late change, and I hope our paths cross again.

If you have already accepted the new offer, the stakes are higher. Under UK rules, accepting an unconditional offer creates a legally binding contract, and if you change your mind the employer can make you work out any contractual notice or sue for breach of contract.^⁠[2] Rules differ by country, so read your signed offer or contract and tell the new employer as early as possible.

If you are going ahead with the new job, you don't need to mention the counteroffer. If you haven't accepted yet and the counteroffer has made you reconsider the terms, raise it once and honestly, as part of a normal negotiation; our job offer negotiation guide shows how.

Before you reply to either employer

• You have written down why you started looking
• Any counteroffer is in writing, with pay, title, scope and start date
• You have compared the two jobs on more than salary
• You know your notice period and whether you have signed anything with the new employer
• You have set yourself a decision date and told both employers when to expect an answer

Whichever job you choose, update your resume while the details of your role, results and any new title are fresh.