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The Value of Employment Counter Offers
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Want a potential new boss to be satisfied after hiring you? Then resist the initial salary offer. This article is the result of a survey conducted of decision-makers during hiring to determine how counteroffers affect the workplace. The main research question was how employer perceptions of value, loyalty, and personal likeability are affected when a candidate responds to an initial salary offer with a counteroffer. Other issues addressed were how variables such as gender, tactic utilized, amount of the initial offer, and amount of the counteroffer affect employer perceptions. The article’s research found that, on average, when a candidate responds to an initial salary offer with a counteroffer, the end result is an increase in employer perceptions of value, a slight increase in perceptions of loyalty, and no change in perceptions of personal likeability. Furthermore, among male employers, these positive perceptions of value and loyalty were even more significant (perceptions of personal likeability remained unchanged). The research found that requesting a moderate increase is likely more advantageous than requesting a small increase. It also confirms the general negotiations principles of “be first” and “be high.” In addition, while controlling for all other variables, a male candidate’s counteroffer resulted in a markedly better offer than a female candidate’s counteroffer.