It seems like a clever idea.
You’re unhappy about something at work, whether it’s your salary, hours, benefits, role, etc. Your boss won’t change what makes you unhappy, but you believe they could if properly incentivized. So you send out your resume, go to a few interviews, and ultimately get a job offer that you can take to your boss. By providing this credible threat that you’ll leave, you hope to gain the leverage you need to get everything you want in your current job.
It’s probably worked for some people before, but believe me, those are the exceptions that prove the rule.
In most cases, your company won’t make a counteroffer, because they’re simply not willing to play the game or the changes you’d like aren’t reasonable for them to give (or they would have given them to you when you first negotiated for them).
Even when a counteroffer is made, it usually doesn’t work out, and here’s why.
Bad Blood
Your boss isn’t as stupid as Dilbert would have you believe. She’ll know that you used the threat of leaving as leverage, and she won’t be happy about it. Her perception of you will have changed, and most likely she’ll begin making plans to replace you. After all, you’ve already shown that you have one foot out the door and that’s not the kind of employee any manager wants.
Burnt Bridges
To get that leverage, you had to go out and get a job offer, which means you went all the way through some other company’s hiring process. You’ve wasted their time. Chances are good, they won’t appreciate it and your chances of being considered there in the future have dropped dramatically.
Band-Aid
A counteroffer is usually made in terms of salary – your boss offers to pay you more to keep you. But it’s unlikely that’s not all that was making you unhappy. Maybe you have issues with coworkers, you don’t work well with your boss’ management style, or the commute is killing you. Whatever those issues are, they aren’t gone now that your salary is higher. And if you were promised the moon and stars, a promotion, more responsibility, or better work/life blanace it may never happen. Let’s face it – if you really loved the company and the job, you wouldn’t try to strongarm them into increasing your salary by threatening to leave, and if you do, you’re playing a dangerous game because you may have to give up a job you love when they don’t make a counteroffer after all.
If the company goes through any layoff or reduction in staff – you will be the first to go. This is due to the higher salary that they were forced to pay and the fact that you have been labeled “un-loyal”.
In our experience, 9 times out of 10, within six months the person who accepted the offer is looking for a new job.
There may be times where accepting a counteroffer makes sense and works out, as there are always exceptions to the norm, but it's so often a bad idea that you should be very, very cautious.