A counter offer is an improved offer made to persuade someone not to leave, or not to take another job. For employers it shows up in three ways:
- You make a job offer, and the candidate's current employer counters it.
- One of your employees resigns, and you consider countering.
- A candidate replies to your offer with their own counter-proposal.
Each needs a different response. This guide covers all three.
Situation 1: your candidate gets a counter offer
You have chosen your candidate, they have accepted, and then their current employer offers them more to stay. This is a normal part of hiring, especially for scarce skills. Most of the work happens before the counter offer arrives.
Before you make the offer
- Ask why they are moving. Early in the process, ask: "What would need to change at your current job for you to stay?" and "If your employer offered you more money, what would you do?" The answers tell you how exposed you are.
- Know whether pay is the main reason. If someone is leaving mainly for pay, a counter offer on pay is likely to tempt them. If they are leaving for the work, the manager, flexibility or progression, the counter offer has to fix something harder.
- Keep the process quick. Long gaps between stages give the current employer time to notice and act. Our guide on how to reduce time to hire covers the common delays.
Making the offer
- Lead with your best realistic offer. A low first offer you expect to raise invites negotiation and makes a counter offer easier to win.
- Sell the whole job. Restate what the candidate told you mattered: the work, the team, the manager, development, flexibility.
- Put it in writing quickly, with a clear date for acceptance. Our offer letter template and conditional offer letter help.
- Prepare them. It is fair to say: "Your employer may make you a counter offer. When you think about it, think about why you started looking."
During the notice period
The period between acceptance and the start date is when counter offers land. Notice periods vary by contract and country. In the UK, for example, GOV.UK says an employee must give at least a week's notice after a month in the job, and the contract often sets a longer period.
Keep the relationship warm:
- a call or coffee with the future manager
- an introduction to the team
- onboarding information and a clear first-day plan (see our onboarding welcome email)
- prompt answers to questions about contracts and start dates
If the candidate tells you about a counter offer
- Thank them for telling you. It means they are still talking to you.
- Ask what was offered and what they are weighing. Listen for the reason they started looking.
- Decide whether you will move. If your offer is already fair, it is reasonable to hold it and restate what the role offers. If the market has moved and you underpitched, adjust once and say it is your final position.
- Do not get into an auction. Repeated rounds damage trust on both sides and set the person up to feel undervalued later.
- Set a deadline. You need to know whether to go back to your shortlist.
Keep a backup
Keep your second-choice candidate warm until your hire has started. Let them know honestly that the process is still finishing.
Situation 2: your own employee resigns
When a valued employee resigns, the instinct is to offer more money. Before you do, ask some questions.
Should you make a counter offer?
| Questions to ask | If yes | If no |
|---|---|---|
| Is pay the main reason they are leaving? | A pay counter may work if your pay is behind the market | Pay alone will not fix it |
| Can you fix the real reason (manager, work, flexibility, progression)? | Counter with that change, in writing | Let them go well |
| Would you have offered this anyway if they had asked? | A counter corrects an oversight | You may be rewarding resignation |
| Will this create unfairness with others in the same role? | Plan how to address it | Consider the knock-on effect |
| Do you still trust their commitment? | Proceed | Let them go well |
If you counter
- Have the conversation quickly and in person.
- Ask what made them look and listen carefully before offering anything.
- Make one offer, in writing, that addresses the real reason.
- Do not pressure or guilt them. If they decline, accept it gracefully.
- If they stay, follow through on every promise and check in regularly.
If you do not counter
- Thank them, agree the notice period and handover.
- Run an exit interview to learn what drove the decision. Our exit interview template can help.
- Leave the door open. People who leave on good terms often refer others, or come back.
Many resignations are preventable earlier. Regular conversations about pay, workload and progression catch problems before someone starts looking. Our guide on how to decrease employee turnover covers this.
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Situation 3: the candidate counters your job offer
Sometimes the counter offer comes from the candidate: they accept in principle but ask for more pay, a different title, a later start, remote days or a signing bonus.
- Treat it as normal. Negotiating an offer is reasonable, and how you handle it is part of their first impression of you.
- Ask what matters most. Pay is not always the main point; flexibility or a start date may be easier for you to give.
- Check internal fairness. Raising one person's pay above colleagues doing the same job can create problems later and, in some jurisdictions, pay equality issues.
- Respond quickly and once. Say what you can and cannot change, why, and confirm the final offer in writing.
- Do not withdraw an offer because someone negotiated politely. If you need to withdraw an offer for other reasons, take advice first; see our rescind job offer letter.
Offer and acceptance: what to put in writing
This is general information, not legal advice. Contract formation and notice rules differ by country.
Whatever the outcome, confirm the final terms in writing: job title, pay, hours, location, start date, probation and any conditions such as background checks. In the UK, GOV.UK says employers must give a principal written statement of employment particulars on the first day of employment, covering items such as pay, hours, holiday entitlement, location and probation. Other countries have their own rules on written terms; check the local requirements where the person will work.
Counter offer checklist for hiring teams
- [ ] Asked every finalist why they are moving and what would make them stay
- [ ] Made a fair offer first, in writing, with an acceptance date
- [ ] Kept the process fast between final interview and offer
- [ ] Prepared the candidate for a possible counter offer
- [ ] Planned contact during the notice period
- [ ] Agreed internally how far you will move, once
- [ ] Kept the second-choice candidate warm until day one
FAQs
Should I match a counter offer?
Only if your original offer was below what the role is worth and you would pay it to anyone in the role. If not, restate what the role offers and hold your position.
Is it unprofessional for a candidate to accept a counter offer after accepting mine?
It is frustrating, but it happens. Reduce the risk by understanding their motives early, and keep a backup candidate until they start.
Should we have a policy on counter offers?
Some employers do, to avoid ad hoc pay decisions. A simple principle helps: counter only to fix a real problem, not to buy time.