NAVIGATING COUNTER OFFERS IN THE INSURANCE INDUSTRY

So, you’ve just received a job offer… and a counter offer.

Despite common opinion, navigating a counteroffer effectively is a delicate process. Insurance professionals should consider the relationships they want to maintain, how they go about negotiating, and most importantly, whether they’ve truly thought about what they want from a new position… or if their current position has the potential to be satisfactory.

BE PREPARED AND KNOW YOUR VALUE

Before entertaining new opportunities, know what you want. Due to most insurance professionals having a good network, whether it’s through colleagues or peers, they tend to have a decent understanding of their worth in the industry. However, this is usually encompassed in salary – nothing else.

Reflect on the reasons you were looking for a new job in the first place. Is it more than just salary? How about:

• Work-life balance

• Company culture

• Job satisfaction

• Growth opportunities

If you don’t consider the entire picture and all the different factors, you’ll be far less informed when deciding as to whether to accept or decline a counteroffer.

COMMUNICATE OPENLY WITH YOUR CURRENT EMPLOYER:

Engage in open conversations with your current employer. Discuss the new job offer, your considerations, and any concerns you may have. In the insurance domain, this dialogue can shed light on how your needs align with the company's goals and foster a constructive resolution.

Discuss the situation with your current employer or manager. Let them know about the new job offer and your intention to explore it. This can open the door to a conversation about your concerns and needs and if your reasons for looking are mitigated early on, so might your desire to leave.

NEGOTIATE PROFESSIONALLY WITH BOTH PARTIES:

When negotiating a counteroffer, clearly specify your requirements. This could involve a salary increase, enhanced insurance benefits, added responsibilities, or other improvements. Ensure that the counteroffer addresses the root issues that prompted your job search.

This means if an employer can’t reach your expectations, that can also be communicated from the beginning, rather than you assuming they understand everything you’re looking for. Whilst it may not be the most comfortable conversation, your employer will appreciate your professionalism and clarity.

This professionalism also applies to how you handle the new job offer and the potential counteroffer from your current employer.

While honesty is valued, continual negotiations against a counteroffer might be perceived as a lack of commitment. Employers appreciate transparent communication, and the fact that you know your worth, but will also benchmark your worth to some extent.

Regardless of the decision, professionalism is non-negotiable. Relationships matter and burning bridges can have lasting consequences. Uphold positive relationships with both current and potential employers.

EVALUATE THE COUNTEROFFER:

There’s no need to make a decision there and then, and in fact, most would discourage it. Go away and carefully assess the counteroffer and how it compares to the new job offer. Beyond immediate financial gains, consider the long-term benefits, the potential for career growth, and overall job satisfaction.

It’s important to understand that current employers may offer you immediate gratification to keep you but with no set plan to progress you afterwards. Ask why have they made the counteroffer.

Is it because they’ve historically undervalued you and will they continue to do this? Do they realise very few applicants have your market experience? Are you a need rather than a valued?

CONSIDER THE RISKS:

Accepting a counteroffer comes with potential risks.

• It could strain your relationship with your current employer, and they may start looking for your replacement

• There's also no guarantee that the counteroffer will lead to long-term satisfaction

• Should you accept the counteroffer, it may be unlikely for the potential employer to consider you again in the future

- Written by Ben Pope

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