You resign, and suddenly the raise that was impossible last quarter appears in writing by Friday. Before you take it, do the math on more than the number.
First, compare total cash, not base. If the new offer includes a signing bonus, a higher bonus target, or equity, a matched base salary is not a matched offer. Put both offers side by side, including retirement match and benefits, with our offer comparison tool.
Second, ask why the money appeared only when you had a foot out the door. A counteroffer funded from next year’s raise budget is common, which means staying can freeze your pay for the following cycle. Ask directly: “Is this in addition to my normal review, or instead of it?”
Third, weigh the non-money reasons you looked in the first place. A counteroffer fixes compensation. It rarely fixes a manager, a stalled promotion path, or work you have outgrown, and industry lore about counteroffer takers leaving within a year exists because the underlying reasons usually survive the raise.
Staying can absolutely be right: if pay was the only problem, if the counter beats the outside offer on total cash, and if you get the “in addition to” answer in writing. Otherwise, the outside offer is usually the honest number, because it is what the market pays for you when nobody is being forced.
Reviewed by Michael Dennis Graham
Michael Dennis Graham is the founder of Grahall, LLC, an executive compensation consulting firm, and the author of numerous books on compensation and total rewards strategy. He has advised boards and management teams on pay design and has served as an expert on compensation matters. Articles on WePayFairly are prepared by our editorial team and reviewed for accuracy and methodology.
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