You know what’s funny? There’s this thing that happens almost like clockwork when a Philadelphia financial services executive starts exploring new opportunities. The moment their current employer catches wind of it, a counteroffer appears. And not just any counteroffer—one that’s been sweetened to compete with New York City money.
If you’ve been in this market long enough, you’ve seen it play out. Maybe you’ve lived it yourself.
“Philadelphia sits in a unique position in the financial services world,” says Jim Hickey, President and Managing Partner at Perpetual Talent Solutions, a Philadelphia executive search firm. “We have world-class institutions, a lower cost of living than Manhattan, and proximity that makes NYC just a train ride away. That combination makes our executives incredibly attractive to employers on both sides of the equation.”
Both sides. That’s the key phrase here. And it creates some interesting dynamics.
Let’s Look at the Actual Numbers
The math behind all this is pretty straightforward once you see it laid out. According to Salary.com, living in New York City is roughly 53% more expensive than Philadelphia. But when you compare to Manhattan specifically? Redfin reports that Manhattan’s cost of living is 118% higher than Philly. And housing? It’s 373% higher.
Three hundred and seventy-three percent. That’s not a typo.
For a financial services executive earning a competitive salary, these differences mean something real. You can own a substantial home on the Main Line or in Center City for what a modest apartment costs near Wall Street.
“When executives do the real math, they often realize that a $200,000 salary in Philadelphia provides a lifestyle equivalent to earning $350,000 or more in Manhattan,” Hickey explains. “That realization cuts both ways—it makes our talent attractive to NYC firms willing to pay premiums, and it gives Philadelphia employers leverage when structuring retention packages.”
The Counteroffer Problem
Here’s where things get complicated. Financial services leads the pack when it comes to counteroffers. Research from Gitnux shows that 56% of finance sector employers extend counteroffers to departing talent—the highest rate of any industry surveyed. And about 55% of employees accept them.
Sounds like a win, right? Not so fast.
The same research shows that 80% of employees who accept counteroffers leave their company within 6-12 months anyway. Only 15% stick around for two or more years after accepting.
Think about that for a second. You accept the counteroffer, you get the raise, you feel good about it… and then within a year, you’re right back where you started. Maybe worse, because now your employer knows you had one foot out the door.
“I always encourage candidates to think carefully about why they started exploring opportunities in the first place,” Hickey notes. “If it was purely about compensation, a counteroffer might address that. But in my experience, it’s rarely just about money. It’s about growth, culture, leadership dynamics, or strategic direction. A bigger paycheck doesn’t fix those underlying issues.”
And honestly? He’s right. Money is rarely the whole story.
What Makes Philadelphia Different
Philadelphia’s financial services sector has changed a lot over the past decade. The region is home to Vanguard, Lincoln Financial, Aramark, and a bunch of asset management firms. The fintech scene has exploded—startups like cred.ai, Odessa Inc., and Synario have all set up shop here.
And then there’s the connectivity factor. Amtrak’s Northeast Regional runs every 30 minutes. Ninety minutes from 30th Street Station to Penn Station. According to Metro Philadelphia, super-commuting between the two cities has increased 28% since the pandemic.
What does that mean in practice? Some Philly residents keep New York jobs with hybrid schedules. Others use NYC offers as negotiating leverage with Philadelphia employers. The line between these markets has gotten really blurry.
“We’re seeing Philadelphia companies benchmark compensation against New York more frequently, especially for senior roles,” Hickey observes. “And we’re seeing New York firms actively recruit from Philadelphia, knowing they can often secure exceptional talent at compensation levels below what they’d pay for equivalent candidates already in Manhattan.”
So you’re valuable to both sides. That’s good to know. But it also means you need to think carefully about how you play this.
What You Should Actually Consider
If you’re navigating this landscape—and a lot of you are—here’s what I’d think about:
Look at the total compensation package, not just base salary. Benefits, equity, bonus structures, retirement contributions—these things vary a lot between markets, and they add up.
Think about where this move takes your career long-term. Is the new opportunity actually an advancement, or is it a lateral move that pays better? There’s a difference.
Don’t ignore cultural fit. Research from Momentum Search Partners shows that counteroffers rarely fix the cultural or leadership issues that made you start looking in the first place. If you were unhappy for reasons beyond money, more money probably won’t change that.
And factor in your actual life. Commute times. Housing. Family stuff. These things matter more as your career progresses, not less.
Here’s some data that might sober you up if you’re thinking about using an outside offer purely as leverage: according to industry research, 57% of employers believe counteroffers aren’t even an effective retention strategy. And 69% report that employees who accept counteroffers show decreased work commitment afterward.
“There’s often a trust issue that emerges after someone accepts a counteroffer,” Hickey adds. “The employer now knows you were ready to leave. That can affect everything from project assignments to promotion considerations. It’s not always conscious, but the dynamic shifts.”
That’s the part people don’t always think through. You can’t un-ring that bell.
Where This Is All Going
The U.S. financial services market keeps growing. Expert Market Research projects the sector will reach $133 billion by 2035. That growth will only make the competition for senior talent fiercer—in both Philadelphia and New York.
For Philadelphia’s financial services executives, counteroffers aren’t going away. They’re just part of the landscape now. The question is how you handle them when they come.
“My advice is always the same,” Hickey concludes. “Know your worth, understand your priorities, and make decisions based on where you want to be in five years—not just what feels good in the moment. The executives who thrive in this market are the ones who play the long game.”
The long game. That’s the key. It’s tempting to grab the counteroffer and feel like you’ve won something. But winning in the moment and winning over time aren’t always the same thing.
Figure out what you actually want. Then make decisions that get you there.
