Informing a current employer about a competing job offer is a sensitive professional conversation. Successfully navigating this discussion impacts both immediate compensation and long-term career trajectory. It requires strategic communication to manage expectations while asserting market value. Approaching this conversation strategically transforms a potentially uncomfortable announcement into a demonstration of career management. This guide outlines the necessary steps to handle this situation with clarity and confidence.
Determine Your Strategic Goal
Before initiating any discussion, you must choose your ultimate desired outcome. The first objective is often to leverage the external offer to secure improved compensation, a higher title, or better working conditions at the current organization. This path requires maintaining a positive, solution-oriented tone, signaling a preference to remain if the company meets your validated market value.
The second objective is using the external offer as the trigger for resignation, having already decided to move on regardless of a counteroffer. If the goal is to leave, the conversation shifts from negotiation to the logistics of the exit process. Clarity on this goal ensures that every subsequent action aligns precisely with the desired professional result. Indecision can undermine leverage and complicate the outcome.
Optimal Timing for the Discussion
Timing the disclosure is important, dictated primarily by the expiration date of the external offer, which typically ranges from a few business days to one week. The discussion with the current employer should happen only when the external offer is fully confirmed, finalized, and received in writing. Communicating the news prematurely allows the current employer time to strategize, diminishing the sense of urgency required for a rapid decision.
The ideal window for disclosure is approximately 24 to 48 hours before the external offer requires a final decision. This timeframe provides the current employer sufficient opportunity to formulate a documented response while reinforcing the immediate need for resolution. Professional communication should always precede the external deadline, ensuring you maintain control over the decision timeline.
Preparation Before the Conversation
Preparation precedes the actual conversation to ensure any negotiation is grounded in objective data. First, determine the minimum acceptable package required to remain with the current company, establishing a clear line for subsequent discussions. This minimum should account for the full value of the external offer, including non-salary components like sign-on bonuses, vacation accrual, and bonus structure.
Research current market compensation rates for your specific role and location to provide an objective baseline for salary discussions. Compile a detailed, quantifiable list of recent professional accomplishments that demonstrate tangible value to the organization. This evidence shifts the focus from a defensive reaction to a proactive discussion of earned merit and future investment. Finally, decide on specific non-monetary metrics—such as a promotion, increased remote flexibility, or a dedicated training budget—that are negotiable beyond the base salary figure.
How to Communicate the Offer
The conversation should be initiated in a formal, private setting with the direct manager. An in-person meeting or high-quality video call is the preferred format over a written email. The tone must remain professional, expressing gratitude for the opportunities provided by the current organization. The initial script should be brief and direct, stating that an external opportunity has prompted a necessary career evaluation.
When presenting the external offer details, avoid language that suggests boasting or an ultimatum. Frame the information as a neutral market validation of your professional value. Mention the specific salary and title offered, then immediately transition the focus back to the current employer’s perspective. Articulate that while the external offer is a significant step forward, you are open to discussing how the current company can align with this market valuation.
For example, state: “I have been offered a Senior Analyst role with a total compensation package of $110,000, and I wanted to discuss how my current role and compensation here might align with this new market reality.” This approach signals a preference to continue contributing to the existing team. The conversation should center on future growth and investment, not simply matching a number. Remaining composed ensures the discussion remains constructive and focused on solutions.
Navigating the Employer’s Response
Following the initial communication, the employer’s response often falls into three categories that require distinct reactions.
Counteroffer
The most direct response is a counteroffer, which demands careful evaluation beyond the simple salary increase figure. Analyze whether the counteroffer genuinely addresses the underlying reasons for seeking a new role, such as title stagnation or poor work-life balance. Look closely for any hidden caveats or unspoken expectations tied to the increased compensation. Ensure the new arrangement is fully documented in writing before accepting.
Inability to Match
A second possible response involves the employer stating they cannot match the external offer due to rigid internal pay structures or budgetary restrictions. When this happens, accept the news gracefully and move forward with the resignation plan. Avoid any emotional reaction or attempt to renegotiate further.
Delay Tactic
The third common tactic is a delay, where the manager requests time to “review internal policies” or “consult with leadership.” Respond professionally but firmly by reiterating the external offer’s imminent deadline. Suggest a follow-up discussion within 24 hours to maintain momentum. A delay often signals a lack of serious commitment to retention, and you must maintain control of the timeline to avoid missing the external acceptance window.
Next Steps if You Choose to Resign
If the decision is finalized to accept the external offer, the next step is the formal act of professional resignation. Submit a brief, professional resignation letter to the direct manager and Human Resources, stating the last intended day of employment, usually two weeks from the date of notice. The letter should remain positive and express gratitude for the past experience, avoiding any mention of the new opportunity or specific reasons for leaving.
Focus immediately on collaborating with the manager to create a detailed transition plan for all ongoing projects and responsibilities. Maintaining high standards of professionalism and productivity throughout the notice period preserves long-term professional relationships. A smooth, cooperative exit ensures the possibility of a positive reference and protects your professional reputation.