Counter-Offers Are Back!
Should you be worried about the rise in counter-offers and the ongoing skills shortage.
The counteroffer is a tool many firms hoped they’d put behind them, but, with competition fierce and the cost of losing talent so high, they seem to have resurfaced as a regular feature in recruitment.
Serious talent shortages have led to firms pulling out all the stops to hold on to good people, even though this is rarely a long-term solution that either party ends up happy with.
So, if you're an employer weighing up whether to make a counter proposal, or an employee facing the decision on whether to accept, how should you respond?
The Employee
Ask yourself honestly why you were looking to leave in the first place. This point really matters. A counteroffer is always flattering, but unless your move is purely money-motivated, it doesn’t help you. Rather, it muddles the waters, which is exactly its objective.
In my experience, the real reasons people explore a move are typically:
A lack of progression or development
Feeling undervalued or disconnected from leadership
Long hours and poor work-life balance
Cultural misalignment or changing team dynamics
A desire for more responsibility or challenge
If any of those things were true before you resigned, are they going to change now?
Commonly, people accept a counteroffer in the moment because it feels good and is the easier, safer option. The reality is that statistics show most people leave within the next 6–12 months, regardless. Why? Because the core issues remain. And then the dynamic changes, with trust eroded and future progression often curtailed - at least in the short term - even if your manager is relieved to keep you.
The Employer
It’s always tough to lose a good person, particularly in a competitive market where replacing them might take months. While you could almost always do without this problem, you need to ask yourself carefully whether you should try to keep them.
Counteroffers are very tempting. If for no other reason than they buy you time and avoid short-term disruption. But, before rushing in with more money or a new title, ask yourself:
Was this completely unexpected?
Have they raised concerns before?
Is your offer solving the problem, or simply delaying it?
If the answer to the last question is “delaying”, a counteroffer is more than likely kicking the can down the road. In some cases, it could also set an unhealthy precedent within the wider team.
However, if their concerns are clear, solvable, and you genuinely believe they could have a positive future at your firm, a well-considered counteroffer (with changes that go beyond salary) might work. Just don’t rely on financial incentives alone to keep someone engaged for the long term. It rarely buys you more than six months.
Be Honest, Be Strategic
Counteroffers are back because firms are under pressure, but that doesn’t mean they’re always wise.
Whether you’re the one offering or receiving, clarity in your decision-making is key. Try to avoid emotion or short-term fear. Understand what’s driving the desire to move and whether it can realistically be addressed.
Avoid purely transactional fixes. If the only reason to stay, or keep someone, is financial, it’s rarely sustainable.
Sometimes, it’s simply time to part ways. Growth often comes from moving on, for both employees and firms. If the relationship has run its course, leave on good terms and focus on finding the right long-term solution. Try to see it as an opportunity for a fresh start for everyone.