Is accepting a counter offer a good idea?


Should I accept a counter offer?


Every year has a theme with insurance employment.  Last year was the year of the counter offer.  As insurance recruiters, we can typically smell a pending counteroffer a mile away.  The insurance job candidate will give send us many indications based on their level of enthusiasm, the questions asked or not asked, the frequency or infrequency of communication, etc.  In short, we know that something is awry.


Please recognize that this is not an unusual situation and your insurance recruiter isn’t going to be angry with you – but we need to know what is transpiring.   We have an obligation to counsel both parties, and an employer may have a second choice waiting in the wings for a position they need to fill.  As an insurance recruiter, we will counsel you not to accept a counter offer.  An insurance candidate may understandably view this as biased, but truly it is not.  This is why we encourage you to do your own independent research on the subject.  You can find several credible sources on the internet that will provide you with the potential pitfalls and statistics relating to accepting a counter offer.   Below are some of the key points you will find, but there are many others as well.  The bottom line is that you should be extremely cautious about accepting a counter offer.


  • Statistics show that more than 80% of people who accept a counter offer end up leaving or being terminated within one year.


  • The employment relationship is forever altered.  A counter offer may be extended due to panic at the thought of losing an employee, but once the moment has passed loyalty can be called into question and resentment may build from feeling that they were strong armed into a salary increase.


  • Unless your motivation was strictly monetary, nothing has changed.  Promises may be made, but ultimately once the crisis is over things will most likely remain the same as they were.


  • Sometimes the counter offer is just a delay tactic while your replacement is found.


  • Your reputation with the other employer is damaged.  It is highly unlikely that they would ever consider offering you another position.


Some relationships are meant to end.  Perhaps the employee has outgrown the position, perhaps the culture of the company has changed and it is no longer a good fit for either party.  Fear of change can hold both parties back from moving forward when they really should.  We see this play out time and again, with the vast majority of people accepting counter offers being either let go or resigning again within a 12 month period.


If you were directed to this article by your insurance recruiter and ultimately decide to accept a counter offer, we will tell you what we always tell insurance professionals – don’t be afraid to pick up the phone and call us when it doesn’t work out the way you thought it would.