The Counter Offer – An Employer’s Perspective

We’ve all heard the phrase “throwing money at the problem” – and in recruitment, that often comes in the form of a counter offer.

From the outside, it can look like a company is doing the right thing: keeping hold of their talented team member by matching – or beating – a competing offer. But from the employer’s side, it’s not always that straightforward. And more often than not, it’s a short-term fix rather than a long-term solution.

According to research published by Personnel Today based on CIPD’s Labour Market Outlook, 80% of people who accept a counteroffer still leave within six months and 90% are gone within a year (read more).

Here’s what’s really going on behind the scenes when an employee resigns, and the business chooses to counter:

Trust is tested

Once someone’s made the decision to resign, the dynamic shifts. Even if they accept the counter and stay, there’s often a lingering doubt: Are they still looking? Will they leave again in a few months? It’s not about holding a grudge – it’s just human nature. And that doubt can quietly influence things like promotions, responsibilities, and future planning.

It sends a message to the team – and not always a good one

When others find out a colleague received a pay rise or incentive after resigning, it can create resentment.“So I need to threaten to leave to be valued?” That kind of atmosphere is hard to manage and even harder to fix.

The disruption is already in motion

Resignations trigger a chain reaction. Handover plans are made. Recruitment is discussed. Budgets are reviewed .Even if the person stays, the process can’t always be ‘unwound’.

Colleagues may have already adjusted, and plans might have shifted – making the return feel a little… awkward.

The root problem hasn’t gone away

It’s easy to assume a pay rise will re-engage someone. But if they were considering leaving due to things like poor culture fit, lack of development, or feeling unheard, those issues won’t magically disappear. A few extra pounds in the payslip doesn’t undo months (or years) of disengagement.

It can become a precedent

If one person negotiates a better package by resigning, others may be tempted to try the same. Suddenly, managers are juggling multiple ‘please stay’ conversations – and that’s not a sustainable way to run a team.

So what’s the alternative?

The best employers create a culture where people feel safe to speak up before things get to resignation stage.

-Regular check-ins, not just performance reviews.

-Clear development paths.

-Recognition that isn’t just reactive.

When people feel heard, valued, and stretched in the right ways, they’re far less likely to look elsewhere. And if someone genuinely wants to leave? That’s OK too – a graceful exit is better than a reluctant retention.

Final thought

As recruiters, we’ve seen both sides of the counter-offer coin.

But from an employer’s point of view, it’s rarely a win. It’s more like pressing pause on a problem, rather than solving it.

If you’re an employer facing a resignation, pause and ask:

Do I want to keep this person long-term – or am I trying to avoid the pain of replacing them in the short term? 

That answer usually tells you everything you need to know.

And of course, if you need to talk through, we're here to listen, just get in touch!

hello@dennyrecruits.com

Or call: 01379 779829