Counter Offer Dilemma: What Employers Need to Know
In a competitive job market, it’s common for candidates to receive counter offers from their current employer. Whether you're the hiring employer or the current employer, navigating this situation requires strategy and perspective.
If You’re the Current Employer
Your employee has an external offer. What now?
Stay Calm & Avoid Emotional Reactions. Disappointment is natural, but reacting emotionally won’t help. Keep communication open and professional to maintain a positive relationship.
Understand Their Motivations. Why were they job-hunting? Better pay? Career growth? Work-life balance? Ask open-ended questions to uncover the real reason behind their decision.
Evaluate the Counter Offer. Counter offers can be a short-term fix, but if deeper issues – lack of growth, dissatisfaction – aren’t resolved, the same concerns may resurface. Consider whether retaining them aligns with long-term company goals.
Consider Team Morale. If one employee stays due to a counter offer, others may start considering their own options. Be mindful of the message this sends and ensure your team feels valued beyond reactive offers
Discuss Long-Term Growth. Use this as an opportunity to reset career conversations. If they don’t see a future with your company, now is the time to lay out a clear path for advancement, training, and leadership opportunities.
Be Transparent. If you can’t match the offer, be honest. False promises erode trust. Clear, upfront communication helps employees make informed decisions.
Respect Their Choice. If they stay, rebuild trust and deliver on commitments. If they leave, handle their departure professionally and with gratitude for their contributions.
Learn From It. Every counter offer scenario is a chance to refine retention strategies. Are employees leaving due to compensation, career stagnation, or culture? Address these issues proactively.
If You’re the Hiring Employer
Your candidate has a counter offer. How do you respond?
Stay Professional. This is a common hurdle in hiring. Keep the discussion positive and respectful. Pressuring candidates into quick decisions rarely works in your favor.
Reinforce the Big Picture. Highlight career growth, culture, and leadership opportunities – things their current employer can’t simply throw money at.
Assess Their Commitment. If they were ready to leave but are now hesitating, what changed? Ask:
If money weren’t a factor, which role excites you more?
What originally drew you to this opportunity?
Is your current employer offering long-term growth or just a short-term fix?
Be Upfront About Your Position. If you're open to negotiating, do so strategically. Don’t engage in a bidding war. Instead, reinforce the total value of joining your company.
Set a Firm but Reasonable Deadline. Dragging out decisions isn’t good for your team or business. Give the candidate a clear timeline to decide so you can move forward.
Keep the Door Open. If they stay with their employer, accept it gracefully. Maintain the relationship, but don’t dwell. Focus on candidates fully invested in making a change.
Learn & Adapt. If counter offers frequently disrupt hiring, refine your approach. Are candidates hesitating due to unclear value propositions? Use these moments to strengthen your hiring strategy.
Final Takeaway
Counter offers are part of today’s hiring landscape, but they don’t always lead to the best outcomes. Whether you’re retaining talent or bringing it in, focus on long-term alignment, not just the next paycheck.
Meet the Author
Megan Harsche
Senior Talent Consultant
When we say, “Ultimate Connectors,” we mean the best at the talent acquisition game.
Our expertise extends across industries, and verticals, with a broad network of professionals at all levels. Whatever your talent needs, we deliver a solution in a way that best fits your unique organization.