When the Boss Offers a Stake In the Business to Get You to Stay
Question: I am the technical director of a small, growing
private company. I received an offer to become research and development
director for 50% more than my current salary. When I told my boss, he offered
me a 10% share in the firm to stay. Should I move for 50% more pay immediately
or stay and perhaps earn more later?
Answer: At first glance, this question seemed to be about the pros
and cons of accepting a counteroffer to stay at your current employer. However,
your situation is more complex than that.
First, don't base your decision solely on money. In many cases,
people who accept jobs only because they'll get a bigger paycheck regret it
later. Although pay is important, true satisfaction comes from doing what you
enjoy.
"You can make all the money in the world, but if you aren't
happy, how long will you want to stay there?" asks Bill Kraus, a vice
president of RWD Executive Search in
More critical to this choice is your career future. How do you see
it progressing and which company is more likely to help you to achieve this
vision? Taking the new job might be a good career move because you would become
the head of a department, perhaps supervising a technical director instead of
being one.
On the other hand, your current employer may have significant
growth potential, and top-tier investors may be backing it. You could
experience satisfying career advancement if you stay.
Weigh these factors and make your decision on what's best for you
professionally, says Joy D'Amore, vice president of human resources and talent
acquisition for FOLIOfn Inc., a brokerage and investment company in
Along these lines, think about what made you consider this offer.
Have you been actively searching for a new position or did a recruiter call you
out of the blue? If you were looking, you likely are dissatisfied in some way.
These problems may not change if you stay.
"There must be some reason why you were interviewing,"
says Mr. Kraus, who previously was a recruiting executive at a company.
"Look at those defining factors and what they're worth."
Some recruiters say to never stay with a current employer after
you've told them about a job offer, no matter how much money you're offered.
They claim you'll be seen as disloyal and that your boss's "counter"
offer of more compensation is designed to keep you only until your replacement
can be found.
But employees who receive counteroffers aren't necessarily doomed
if they stay, Mr. Kraus says. Lines of communication may be poor at their
companies, and they may not have let management know they were unhappy. When
these employees say they've received job offers, their managers may make
sincere efforts to keep them, he says. "I don't necessarily believe that
it's political suicide to stay," he says.
One sign your employer may have no plans to replace you is that it
has offered you equity, which gives you ownership in the business. Still,
having equity may pay off only if you stay for the long run, and your shares
will be most likely to gain value only if your company is sold or has a
successful public stock offering, Ms. D'Amore cautions. "Ten percent of
something that isn't going anywhere is 10% of nothing," she adds.
Finally, take a good look at the new job and company and its
culture. Employees at larger companies often don't have as much influence as
those at smaller firms, and may not be exposed to as many challenges, says Ms.
D'Amore. Some people who are happy at small employers don't fit in at larger
ones.
My advice is to think it over carefully in light of the factors
I've outlined and discuss the pros and cons of your options with trusted
friends or family members. In the end, your decision probably turns on what's
best for your career, because your career satisfaction is what's going to
generate more money.
Have a question about job hunting or career management? Send
it to Perri Capell. If you don't want
your name used in our column, please indicate that. Due to the volume of mail
received, we regret that we cannot answer every question.
Article from Career Journal
Online December 2006