Give me a raise, or I'll walk the plank!
April 7, 2013 7:34 AM Subscribe
I work for Company A and have an offer from Company B. How do I properly negotiate a raise with Company A?
I have been employed with Company A for 16 months. Company B has offered me a position similar to the one I have now. There's only one real draw to company B, but it's a big one: A 33% raise. For a variety of reasons, I'd like to stay with Company A. How do I negotiate a raise with Company A? Other fun facts/pieces of the larger questions that I'd appreciate you considering as part of your answer:
-I've never negotiated a salary or raise in my life.
-How do I begin the conversation?
-What number should I present as a starting point in the negotiation? Should I ask for what Company B gave me as a starting point and negotiate from there?
-To that point, my ultimate goal would be for Company A to match the offer Company B gave me, but I don't expect Company A to do that. Should I accept Company A's counteroffer as their one-and-only offer, or is there typically room for further negotiation? (I'm thinking like the movies: "I want $5 million." "I'll give you $2 million!" "$4 million!" "$3 million!" "Done!"
-I've been told to present my boss with a one-sheet list of my accomplishments and the reasons I'm valuable to the company. I plan on doing this.
-Four people who have resigned from Company A have told me that my boss offered them more money to stay.
I have been employed with Company A for 16 months. Company B has offered me a position similar to the one I have now. There's only one real draw to company B, but it's a big one: A 33% raise. For a variety of reasons, I'd like to stay with Company A. How do I negotiate a raise with Company A? Other fun facts/pieces of the larger questions that I'd appreciate you considering as part of your answer:
-I've never negotiated a salary or raise in my life.
-How do I begin the conversation?
-What number should I present as a starting point in the negotiation? Should I ask for what Company B gave me as a starting point and negotiate from there?
-To that point, my ultimate goal would be for Company A to match the offer Company B gave me, but I don't expect Company A to do that. Should I accept Company A's counteroffer as their one-and-only offer, or is there typically room for further negotiation? (I'm thinking like the movies: "I want $5 million." "I'll give you $2 million!" "$4 million!" "$3 million!" "Done!"
-I've been told to present my boss with a one-sheet list of my accomplishments and the reasons I'm valuable to the company. I plan on doing this.
-Four people who have resigned from Company A have told me that my boss offered them more money to stay.
You don't. Never, EVER EVER accept a counteroffer, no good can come of it.
I've heard a first hand account from a manager who was told by upper management to offer a sky-high counteroffer to an employee who just resigned, with the intention of quietly looking for their replacement once they accepted. Once the replacement was on staff and up to speed, the original resigner was to be fired without cause, leaving the employee ass out with no job at all, and the company with no gap in continuity. Don't let that happen to you. If your employer valued you, they'd have paid you what you were worth in the first place.
posted by deadmessenger at 7:55 AM on April 7, 2013 [13 favorites]
I've heard a first hand account from a manager who was told by upper management to offer a sky-high counteroffer to an employee who just resigned, with the intention of quietly looking for their replacement once they accepted. Once the replacement was on staff and up to speed, the original resigner was to be fired without cause, leaving the employee ass out with no job at all, and the company with no gap in continuity. Don't let that happen to you. If your employer valued you, they'd have paid you what you were worth in the first place.
posted by deadmessenger at 7:55 AM on April 7, 2013 [13 favorites]
deadmessenger has it, if you accept more money and stay then they can never trust you again and will expect you to pull the same stunt next year.
posted by epo at 8:04 AM on April 7, 2013 [2 favorites]
posted by epo at 8:04 AM on April 7, 2013 [2 favorites]
The above poster is right. The best way to "negotiate" a substantial raise is to move to company B. No company will give you that kind of raise for the same work.
posted by dbmcd at 8:04 AM on April 7, 2013 [1 favorite]
posted by dbmcd at 8:04 AM on April 7, 2013 [1 favorite]
Agreeing that this is not in your best interest. Doing this tells Company A that you are ready and willing to leave. They are motivated to keep you until they find your replacement, and that leaves you without a job at Company A or B.
That doesn't mean that you can't ask Company A for more money. Just don't tell them about Company B. However, they are unlikely to move with any real speed on the issue because they don't know about another offer.
Possibly, you can take the job with Company B to boost the number you give when the next employer asks how much you make. That next employer could be Company A again (after several years with Company B).
posted by Houstonian at 8:13 AM on April 7, 2013 [2 favorites]
That doesn't mean that you can't ask Company A for more money. Just don't tell them about Company B. However, they are unlikely to move with any real speed on the issue because they don't know about another offer.
Possibly, you can take the job with Company B to boost the number you give when the next employer asks how much you make. That next employer could be Company A again (after several years with Company B).
posted by Houstonian at 8:13 AM on April 7, 2013 [2 favorites]
If your employer valued you, they'd have paid you what you were worth in the first place.
I tend to agree with this, but of course it depends on the size and circumstances of company A. Setting that aside, if your ultimate desired outcome really is to stay with Company A and get a raise (which will almost certainly be short of the 33% bump you'll get from Company B) then you should just ask for a raise.
There have been two times where I've received a counteroffer after giving notice - In my case I had no desire to remain at either of those jobs, but it was awkward and uncomfortable both times; I couldn't imagine staying at a job after that situation because 1) If they valued me that much, then why weren't they paying me that in the first place? and/or 2) Now they think all I care about is the money, and won't trust me not to do this again.
posted by usonian at 8:13 AM on April 7, 2013
I tend to agree with this, but of course it depends on the size and circumstances of company A. Setting that aside, if your ultimate desired outcome really is to stay with Company A and get a raise (which will almost certainly be short of the 33% bump you'll get from Company B) then you should just ask for a raise.
There have been two times where I've received a counteroffer after giving notice - In my case I had no desire to remain at either of those jobs, but it was awkward and uncomfortable both times; I couldn't imagine staying at a job after that situation because 1) If they valued me that much, then why weren't they paying me that in the first place? and/or 2) Now they think all I care about is the money, and won't trust me not to do this again.
posted by usonian at 8:13 AM on April 7, 2013
Like the above say, nothing good comes from accepting a counteroffer. I'm in management and I can tell you that getting the money together to provide you a counteroffer is a PITA for your manager (and up the chain, most likely) and even if your manager doesn't look at you with suspicion, the rest of the folks above him/her will.
If you do want to do this, I suggest giving your standard 2 weeks notice. When your boss asks you where you are going, tell them. When your boss asks you why, tell them about the raise. Then, see what they say.
If you do receive a counter offer, I would not try to negotiate it higher due to factors in paragraph 1.
In the companies I have worked in (> $1Bn/yr annual revenue, high tech), an employee who has been there 16 months is probably not going to get a counter offer. If you had been there 16 years, developed strong ties with upper management, and been critical to the company's ongoing business, sure maybe. But not after 16 months and not for a 33% increase.
posted by elmay at 8:15 AM on April 7, 2013 [1 favorite]
If you do want to do this, I suggest giving your standard 2 weeks notice. When your boss asks you where you are going, tell them. When your boss asks you why, tell them about the raise. Then, see what they say.
If you do receive a counter offer, I would not try to negotiate it higher due to factors in paragraph 1.
In the companies I have worked in (> $1Bn/yr annual revenue, high tech), an employee who has been there 16 months is probably not going to get a counter offer. If you had been there 16 years, developed strong ties with upper management, and been critical to the company's ongoing business, sure maybe. But not after 16 months and not for a 33% increase.
posted by elmay at 8:15 AM on April 7, 2013 [1 favorite]
Yeah, on reflection, I agree with deadmessenger. I was thinking about whether or not you have any actual leverage, but it actually doesn't matter. If you reveal that you have another offer, your company is going to assume, rightly or wrongly, that you've been looking for work and have one foot out the door. I think you just need to decide whether or not you want to leave, and then do it.
If you decide to stay, what you can do is negotiate a raise on its own terms. Take that summary of your accomplishments to your boss and say, "Boss, I've increased our widget sales by 700% percent, and my customers rave about my work with gadgets. I'd like to request a performance review and a talk about my compensation." And you can do that without ever revealing that you have another offer.
You can actually use the number you have from B without revealing that you got it as a counteroffer. What having the other offer does is give you a benchmark number to throw out. If you go into the negotiation, and your boss says, "We can offer you a 10% raise," you can say, "My research about the market indicates that a 30-35% raise would put my salary in line with others in the industry." But if you name a specific number like that, and you don't get it, I think you have to be prepared to leave to get it.
posted by decathecting at 8:15 AM on April 7, 2013
If you decide to stay, what you can do is negotiate a raise on its own terms. Take that summary of your accomplishments to your boss and say, "Boss, I've increased our widget sales by 700% percent, and my customers rave about my work with gadgets. I'd like to request a performance review and a talk about my compensation." And you can do that without ever revealing that you have another offer.
You can actually use the number you have from B without revealing that you got it as a counteroffer. What having the other offer does is give you a benchmark number to throw out. If you go into the negotiation, and your boss says, "We can offer you a 10% raise," you can say, "My research about the market indicates that a 30-35% raise would put my salary in line with others in the industry." But if you name a specific number like that, and you don't get it, I think you have to be prepared to leave to get it.
posted by decathecting at 8:15 AM on April 7, 2013
I also have to agree with deadmessenger, unless what you're asking for is a modest raise, like to the next regular pay grade or whatever your company has.
If it's a big raise, which 33% is, then effectively you are not asking for a long-term job; you are offering to continue to cover the gap until they find your replacement. You will cost a lot for that service, and it's up to them to decide if it's worth it. If you think of it that way, it actually makes perfect sense, and you will not screw yourself by letting the Company B offer go. Maybe Company B would be willing to wait 6 months for you to start, or something?
Mitigating factor: if your current salary at Company A is so ridiculously out of line with the market that Company B's offer is normal, then Company A might not be able to get a replacement at your original pay. They might say to themselves, "crap. Busted. I guess we'll just have to pay st starseed more forever," give you the raise, and never think about it again.
I don't think I'd count on that, though, if it were me.
posted by ctmf at 8:16 AM on April 7, 2013 [1 favorite]
If it's a big raise, which 33% is, then effectively you are not asking for a long-term job; you are offering to continue to cover the gap until they find your replacement. You will cost a lot for that service, and it's up to them to decide if it's worth it. If you think of it that way, it actually makes perfect sense, and you will not screw yourself by letting the Company B offer go. Maybe Company B would be willing to wait 6 months for you to start, or something?
Mitigating factor: if your current salary at Company A is so ridiculously out of line with the market that Company B's offer is normal, then Company A might not be able to get a replacement at your original pay. They might say to themselves, "crap. Busted. I guess we'll just have to pay st starseed more forever," give you the raise, and never think about it again.
I don't think I'd count on that, though, if it were me.
posted by ctmf at 8:16 AM on April 7, 2013 [1 favorite]
Response by poster: Two things of note I forgot at my original post and based on the first response:
1. I am indeed prepared to leave should my request not be taken seriously.
2. Should I approach the conversation differently? Instead of going with the "I'd like a raise of I'll leave" approach, would I be better off by saying something like, "I am being pursued by another company. That company would, I believe, be able to offer me more money to do similar work. I'd like to talk to you about staying here, but it'd be irresponsible of me not to consider what else is available to me."
posted by st starseed at 8:17 AM on April 7, 2013
1. I am indeed prepared to leave should my request not be taken seriously.
2. Should I approach the conversation differently? Instead of going with the "I'd like a raise of I'll leave" approach, would I be better off by saying something like, "I am being pursued by another company. That company would, I believe, be able to offer me more money to do similar work. I'd like to talk to you about staying here, but it'd be irresponsible of me not to consider what else is available to me."
posted by st starseed at 8:17 AM on April 7, 2013
First, get a job offer in writing from CompanyB. You cannot have the below conversation unless you have a job offer in writing. Until that happens, there is no second job offer.
You walk in with two pieces of paper in hand, both folded into third and say "I deserve a raise, I want to be paid [$CompanyB*1.25]."
Your boss will probably ask why you deserve a raise. You open up the first paper and explain all the things you've done, do and will be doing in a way that clearly explain the value of those things to your company.
Two things can happen at this point:
posted by Brian Puccio at 8:19 AM on April 7, 2013 [2 favorites]
You walk in with two pieces of paper in hand, both folded into third and say "I deserve a raise, I want to be paid [$CompanyB*1.25]."
Your boss will probably ask why you deserve a raise. You open up the first paper and explain all the things you've done, do and will be doing in a way that clearly explain the value of those things to your company.
Two things can happen at this point:
- Your boss says no (or he gives you an amount less than what you want). Either you accept that and continue working for CompanyA because you value CompanyA more than the salary difference at CompanyB or you decide you'd rather have the money. Hand your boss the second piece of paper. It's your resignation letter. This is the most likely outcome. Good luck at CompanyB. You can no longer work at CompanyA at this point for the reason that deadmessenger pointed out. Keep in mind, the next time your boss has a budget issue, you're much higher on the list of people to go since you free up more money.
- Your boss says yes (or otherwise gives you more money, which you consider worth staying at CompanyA for) because you've pointed out to him that you are more valuable than your current salary and he agrees. You thank your boss for his time and head back to your desk and destroy the resignation letter. (Eat it if you have to.) Call CompanyB that night and tell them you cannot accept their job offer.
posted by Brian Puccio at 8:19 AM on April 7, 2013 [2 favorites]
Agree that you should not go in to this with the 'I need $x because I've received that offer from "B"' line for the reasons stated.
I will say, however, that you need to be careful in pursuing the raise as simply "I would like a raise". It depends a lot on your company's politics, structure, and procedures. Your boss may not have the authority to simply hand you a raise, and you may not be able to get an answer in the time frame you will need to decide whether to stay or leave for Company B. Worst case scenario: You get some initial positive feedback from your manager, indicating there's a good chance you can get what you want. It sits in HR long enough for you to need to turn down B's offer, under the assumption that you're good to go at A. Later, HR comes back and says no raise for you. Only you would have insight into how the process might work at Company A; be sure to factor that into your decision.
As a data point, a few years ago I successfully negotiated a raise (which was accompanied by a promotion). It took over 6 months. From this experience I will also caution you to not consider yourself having received any promised raise until you get your first new paycheck.
If it's purely the money, move to Company B. You probably don't have much in the way of pull / seniority at A, and 33% is a monstrous in-house raise at any organization; anything you might get is very likely not going to even come close, especially an in-place raise not accompanied by a promotion.
posted by SquidLips at 8:55 AM on April 7, 2013 [1 favorite]
I will say, however, that you need to be careful in pursuing the raise as simply "I would like a raise". It depends a lot on your company's politics, structure, and procedures. Your boss may not have the authority to simply hand you a raise, and you may not be able to get an answer in the time frame you will need to decide whether to stay or leave for Company B. Worst case scenario: You get some initial positive feedback from your manager, indicating there's a good chance you can get what you want. It sits in HR long enough for you to need to turn down B's offer, under the assumption that you're good to go at A. Later, HR comes back and says no raise for you. Only you would have insight into how the process might work at Company A; be sure to factor that into your decision.
As a data point, a few years ago I successfully negotiated a raise (which was accompanied by a promotion). It took over 6 months. From this experience I will also caution you to not consider yourself having received any promised raise until you get your first new paycheck.
If it's purely the money, move to Company B. You probably don't have much in the way of pull / seniority at A, and 33% is a monstrous in-house raise at any organization; anything you might get is very likely not going to even come close, especially an in-place raise not accompanied by a promotion.
posted by SquidLips at 8:55 AM on April 7, 2013 [1 favorite]
I wrote a reply to a similar question before. Copy and pasted below (I teach negotiations for a living)...
The first lesson in any negotiations class is that the outcome of a negotiation is a function of the two party's best alternatives (i.e., what each party would do if they did not reach a deal). This explains why starting salaries tend to go down in recessions (nobody can find another job) and why starting salaries go up during booms (everybody can find another job). The outside offer means that you now have a much better alternative. That's great! It means you can walk into the negotiation with a lot less stress and a lot more power than you would if you didn't have a backup plan.
The big challenge that you face, however, is how you leverage the power of an outside offer without looking like a disloyal self-interested asshole. What you should not do is talk about "averages" and "pay scales" or ask them to make the "first offer." Companies love to pay below average salaries and there's no reason why somebody as marketable as you should be paid an "average" salary. These passive aggressive are rarely successful in practice.
I also don't recommend saying that you have an outside offer and want them to match it. Doing that can backfire. If you ask your current employer to match an offer and they don't, you won't bea able to stay in your current job without a huge hit to your reputation.
What I recommend doing is grab a friendly cup of coffee with your supervisor and ask them for their advice. Tell them that you're receiving calls from from other companies (they've gotten calls too, and have probably made them). Explain, like you explained to us, that you're not sure what to do. You know that you could use these offers to try and get a big raise, but you love working at your company and don't feel comfortable making threats you wouldn't want to follow up on. That's just not your style. You're loyal and you don't want to get a raise this way. Show them how uncomfortable this makes you. By having this conversation, you're establishing that you have a really great alternative, but that you care too much about the relationships to use it. This protects your from them acting like assholes.
Chances are, talking about these things will make your supervisor feel a bit uncomfortable as well: why talk about outside offers if you're not planning to ask for a raise? This is when you pivot and make them feel at ease. Explain that you want to have a longer conversation (in a week or two) about your role in the company, what you do, where you'll be in five years, etc. Explain that this is more than just a job to you and, if you're on your dream career path, there wouldn't be an outside offer in the world that would tempt you. You want to be thrilled with your job and you want your company to be thrilled to have you.
Basically, I want you to turn a relationship-killing win-lose negotiation into a relationship-building win-win negtiation. In the second negotiation--about your career---you'll not only be able to get a big raise (but don't forget that you want more money!), but you can also set yourself up for future raises, promotions, etc. Just treat it like collaborative problem-solving instead of a negotiation and you'll probably end up much better off.
posted by eisenkr at 9:04 AM on April 7, 2013 [16 favorites]
The first lesson in any negotiations class is that the outcome of a negotiation is a function of the two party's best alternatives (i.e., what each party would do if they did not reach a deal). This explains why starting salaries tend to go down in recessions (nobody can find another job) and why starting salaries go up during booms (everybody can find another job). The outside offer means that you now have a much better alternative. That's great! It means you can walk into the negotiation with a lot less stress and a lot more power than you would if you didn't have a backup plan.
The big challenge that you face, however, is how you leverage the power of an outside offer without looking like a disloyal self-interested asshole. What you should not do is talk about "averages" and "pay scales" or ask them to make the "first offer." Companies love to pay below average salaries and there's no reason why somebody as marketable as you should be paid an "average" salary. These passive aggressive are rarely successful in practice.
I also don't recommend saying that you have an outside offer and want them to match it. Doing that can backfire. If you ask your current employer to match an offer and they don't, you won't bea able to stay in your current job without a huge hit to your reputation.
What I recommend doing is grab a friendly cup of coffee with your supervisor and ask them for their advice. Tell them that you're receiving calls from from other companies (they've gotten calls too, and have probably made them). Explain, like you explained to us, that you're not sure what to do. You know that you could use these offers to try and get a big raise, but you love working at your company and don't feel comfortable making threats you wouldn't want to follow up on. That's just not your style. You're loyal and you don't want to get a raise this way. Show them how uncomfortable this makes you. By having this conversation, you're establishing that you have a really great alternative, but that you care too much about the relationships to use it. This protects your from them acting like assholes.
Chances are, talking about these things will make your supervisor feel a bit uncomfortable as well: why talk about outside offers if you're not planning to ask for a raise? This is when you pivot and make them feel at ease. Explain that you want to have a longer conversation (in a week or two) about your role in the company, what you do, where you'll be in five years, etc. Explain that this is more than just a job to you and, if you're on your dream career path, there wouldn't be an outside offer in the world that would tempt you. You want to be thrilled with your job and you want your company to be thrilled to have you.
Basically, I want you to turn a relationship-killing win-lose negotiation into a relationship-building win-win negtiation. In the second negotiation--about your career---you'll not only be able to get a big raise (but don't forget that you want more money!), but you can also set yourself up for future raises, promotions, etc. Just treat it like collaborative problem-solving instead of a negotiation and you'll probably end up much better off.
posted by eisenkr at 9:04 AM on April 7, 2013 [16 favorites]
Counteroffers are fine to accept with a long-term employment contract under which you can't be fired without a huge severance package (at least 3-4 times the number of months it takes to get a new job in your industry).
posted by MattD at 9:29 AM on April 7, 2013 [2 favorites]
posted by MattD at 9:29 AM on April 7, 2013 [2 favorites]
Here's how I handled a similar situation. Got an offer that was 35% over my current position. Love my job but with some significant medical bills coming could really use the raise.
I dropped my two-week notice on my boss's desk and when he asked, let him know I was leaving for a higher-paying position so we could have financial resources when/if the situation required it.
He came back that afternoon with a match offer. I sat on it and went back the next day with a counter: match + guaranteed severance if fired/laid off within a year. He countered with a bonus that would be mine to keep if they laid me off but that I would have to return if I left within a year. I took that counter.
There are of course snowflakes. I am in a critical position in a high-demand tech field, and am more difficult to replace than others. Also, knowing that I was only leaving so if we had the upcoming medical issue, that I'd be able to take care of my kids, was important to my company. (They're really big on healthy work/life balance.)
In the end it was the right call for me. Having them put up funds to act as a surety against them immediately canning me and seeking a replacement really helped me feel they weren't going to pull a fast one.
However, not all situations are like mine. Be sure you are ready to walk if they don't give you a counter that includes severance or some sort of surety against seeking your replacement.
posted by tigerjade at 9:53 AM on April 7, 2013 [1 favorite]
I dropped my two-week notice on my boss's desk and when he asked, let him know I was leaving for a higher-paying position so we could have financial resources when/if the situation required it.
He came back that afternoon with a match offer. I sat on it and went back the next day with a counter: match + guaranteed severance if fired/laid off within a year. He countered with a bonus that would be mine to keep if they laid me off but that I would have to return if I left within a year. I took that counter.
There are of course snowflakes. I am in a critical position in a high-demand tech field, and am more difficult to replace than others. Also, knowing that I was only leaving so if we had the upcoming medical issue, that I'd be able to take care of my kids, was important to my company. (They're really big on healthy work/life balance.)
In the end it was the right call for me. Having them put up funds to act as a surety against them immediately canning me and seeking a replacement really helped me feel they weren't going to pull a fast one.
However, not all situations are like mine. Be sure you are ready to walk if they don't give you a counter that includes severance or some sort of surety against seeking your replacement.
posted by tigerjade at 9:53 AM on April 7, 2013 [1 favorite]
Companies don't pay you what you are worth, they pay you what they think is required to hire you and then keep you. If you have good reviews and an offer, you can parlay this into a better situation at your present employer, possibly as a new role with greater responsibilities, or as a higher than normal annual raise.
You're probably not going to get a 33% raise at your present company without significant new responsibilities, but you might get 10%.
As others have said though, the surest way to get a raise is to jump on the new offer.
posted by zippy at 11:59 AM on April 7, 2013
You're probably not going to get a 33% raise at your present company without significant new responsibilities, but you might get 10%.
As others have said though, the surest way to get a raise is to jump on the new offer.
posted by zippy at 11:59 AM on April 7, 2013
Ask for a raise and offer substantive reasoning for the raise to be granted. If your boss agrees, he /she will need ammunition to use when lobbying for the raise. Do not mention the offer from company B.
If it's not what you're after, go to company B. End. Everyone hates the people who constantly threaten to quit then don't. Do not be the employee that cries wolf.
I quit last year and was straight up with my employer about my reasons for leaving. I left on good terms, don't burn bridges unless you can't avoid it.
posted by arcticseal at 1:49 PM on April 7, 2013 [1 favorite]
If it's not what you're after, go to company B. End. Everyone hates the people who constantly threaten to quit then don't. Do not be the employee that cries wolf.
I quit last year and was straight up with my employer about my reasons for leaving. I left on good terms, don't burn bridges unless you can't avoid it.
posted by arcticseal at 1:49 PM on April 7, 2013 [1 favorite]
I would be totally straight with my boss, and say I've been made a better offer by company x. At that point the ball is in his court.
Various things can happen at that point.
a) One friend of mine was immediately told "you can't quit, you're fired, get out". He still isn't eligible for alumni benefits from that company because he was "fired". Still he had a better job to go to, at a better company, so he didn't care.
b) Boss say "congratulations, I hope you like it there" (ie he didn't value you much anyway, or knows he can't beat the offer).
c) Boss asks about making a counteroffer to keep you.
Only if (c) comes up do you even need to worry about counteroffers, and then you can decide if their offer is worth accepting. In my industry (hi tech) I would not expect reprisals after taking a counteroffer, if everything had been done in good faith. Things might be different in other fields (eg the law).
(I don't know if your boss is male or female so modify genders as needed)
posted by w0mbat at 6:03 PM on April 7, 2013
Various things can happen at that point.
a) One friend of mine was immediately told "you can't quit, you're fired, get out". He still isn't eligible for alumni benefits from that company because he was "fired". Still he had a better job to go to, at a better company, so he didn't care.
b) Boss say "congratulations, I hope you like it there" (ie he didn't value you much anyway, or knows he can't beat the offer).
c) Boss asks about making a counteroffer to keep you.
Only if (c) comes up do you even need to worry about counteroffers, and then you can decide if their offer is worth accepting. In my industry (hi tech) I would not expect reprisals after taking a counteroffer, if everything had been done in good faith. Things might be different in other fields (eg the law).
(I don't know if your boss is male or female so modify genders as needed)
posted by w0mbat at 6:03 PM on April 7, 2013
you should take a step back and evaluate if the 33% raise is really 33% in terms of total income, adjusted for cost of living. is the new company in a more expensive city? do they offer fewer benefits? crappier retirement plan? do you have a house? a family? how much of a pain will it be to relocate? THEN discount by the uncertainty of a new work environment.
that aside, i could see a counter offer being kind of reasonable if you just had your performance evaluation a few months ago, and you can go to your boss with the fact that net of cost of living, they're willing to give you a higher raise. you will give them a chance to beat the offer as a courtesy, but next time there will be no such offer. but, you can only do this if you are a super-star.
posted by cupcake1337 at 9:26 PM on April 7, 2013
that aside, i could see a counter offer being kind of reasonable if you just had your performance evaluation a few months ago, and you can go to your boss with the fact that net of cost of living, they're willing to give you a higher raise. you will give them a chance to beat the offer as a courtesy, but next time there will be no such offer. but, you can only do this if you are a super-star.
posted by cupcake1337 at 9:26 PM on April 7, 2013
Response by poster: For anyone reading this thread and wants to know the result...here's what went down...
I prepared a resignation letter and took it to the company president's office. I sat down and said these words: "A few weeks ago, a friend approached me about her husband's company and some opportunities available there. Curious what was out there, I explored the opportunities, although without any serious intentions. But I was quite surprised by what I found. I did receive a job offer, and frankly, it'd be foolish of ,me to completely ignore it. Now, this has been difficult a conversation for me to work up to, because there are certainly some things I like about working here at Company A, but I have decided it'd be in my best interest to tender my resignation.
Then I gave him the letter, sealed in an envelope.
I was fully prepared for him to say, "Okay, have a nice life," but I had also done my homework on people who had quit recently, and found that in every instance, he had proposed a counteroffer to the quitters. I was no exception, as our conversation led to a) the creation of a new position for me better suited to my skillset and career desires, and b) a raise. I was asked to write my own job description (which he bizarrely had no changes to), which I gave to him later that day.
We met three business days later to hash out specifics of the work, and another two days after that to hash out the money. Four more business days later, we finalized the negotiations.
Some relevant details, as everyone's company/situation will vary:
-Our company is small; about 30 salespeople and about 25 operations people...with Marketing, IT, HR, and Legal handled through our parent company...so someone leaving tends to create a noticeable hole. Holes are, as one might expect, bad.
-I didn't know until two days later, but at the time I resigned, the VP of Operations (effectively the second-in-command and my direct boss) had resigned a week earlier, so the president was not feeling hot about his personnel situation.
-Going into the resignation meeting with an alternative besides "give me a raise" was HUGE. I knew there was a hole to fill in our company, and I knew from past conversations the company was looking to fill it. So I helped the president solve two problems: potentially losing an employee, and looking for a qualified employee to do the job he had in mind that I am now doing.
posted by st starseed at 11:27 AM on May 5, 2013
I prepared a resignation letter and took it to the company president's office. I sat down and said these words: "A few weeks ago, a friend approached me about her husband's company and some opportunities available there. Curious what was out there, I explored the opportunities, although without any serious intentions. But I was quite surprised by what I found. I did receive a job offer, and frankly, it'd be foolish of ,me to completely ignore it. Now, this has been difficult a conversation for me to work up to, because there are certainly some things I like about working here at Company A, but I have decided it'd be in my best interest to tender my resignation.
Then I gave him the letter, sealed in an envelope.
I was fully prepared for him to say, "Okay, have a nice life," but I had also done my homework on people who had quit recently, and found that in every instance, he had proposed a counteroffer to the quitters. I was no exception, as our conversation led to a) the creation of a new position for me better suited to my skillset and career desires, and b) a raise. I was asked to write my own job description (which he bizarrely had no changes to), which I gave to him later that day.
We met three business days later to hash out specifics of the work, and another two days after that to hash out the money. Four more business days later, we finalized the negotiations.
Some relevant details, as everyone's company/situation will vary:
-Our company is small; about 30 salespeople and about 25 operations people...with Marketing, IT, HR, and Legal handled through our parent company...so someone leaving tends to create a noticeable hole. Holes are, as one might expect, bad.
-I didn't know until two days later, but at the time I resigned, the VP of Operations (effectively the second-in-command and my direct boss) had resigned a week earlier, so the president was not feeling hot about his personnel situation.
-Going into the resignation meeting with an alternative besides "give me a raise" was HUGE. I knew there was a hole to fill in our company, and I knew from past conversations the company was looking to fill it. So I helped the president solve two problems: potentially losing an employee, and looking for a qualified employee to do the job he had in mind that I am now doing.
posted by st starseed at 11:27 AM on May 5, 2013
Great result, congratulations!
What I'd suggest though, is to put the raise into an emergency fund should you not have one already. That way, should your boss decide that he only needs you to fill a hole until he can find a replacement, you're covered for a few months for a job search.
posted by arcticseal at 11:39 AM on May 5, 2013
What I'd suggest though, is to put the raise into an emergency fund should you not have one already. That way, should your boss decide that he only needs you to fill a hole until he can find a replacement, you're covered for a few months for a job search.
posted by arcticseal at 11:39 AM on May 5, 2013
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posted by decathecting at 7:53 AM on April 7, 2013 [1 favorite]