A counteroffer is an offer a candidate's current employer makes to keep them after they resign or say they are leaving. It may include more pay, a new title, a retention bonus or a promise of change. Recruiters raise the topic early so the candidate decides how they would respond before it happens.
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An offer a candidate's current employer makes to keep them after they resign. Recruiters raise it early so the candidate decides before it happens.
Losing a trusted employee is costly and disruptive, so many employers try to keep people who resign, especially in tight markets. The counteroffer usually comes fast and with emotion: a manager saying how much the person is valued and that things will be different.
For the candidate, it can be flattering and confusing. For the recruiter, it is one of the most common reasons an accepted offer falls apart before the start date. Agency recruiters lose a placement fee; in house teams lose weeks of work and may have to restart the search.
The best defense is a clear understanding of why the candidate wanted to move in the first place. If the reasons are about growth, management or culture, extra pay rarely fixes them, and candidates who recall their reasons are less likely to accept a counter.
Why it matters to recruiters
Counteroffers cause late stage fall offs that hurt fill rates, damage client trust and waste interview time. Recruiters who discuss the possibility at the first call, again at offer and again at resignation can spot candidates who are really using the process to get a raise and can plan backups.
An example from a recruiting desk
On the first call, a recruiter asks a project manager what he would do if his boss offered a 10 percent raise to stay. He pauses, then admits pay is not the issue; he wants to lead larger projects. Two months later he gets the counter, remembers that conversation and declines it. He starts with the new employer as planned.
Tips that help
Ask on the first call why the candidate wants to leave and write the answer down.
Ask directly how they would respond to a counteroffer before you present them to a client.
Coach the candidate on a short, polite resignation that does not invite negotiation.
Stay in contact daily between resignation and the start date.
Mistakes to avoid
Avoiding the topic because it feels awkward until the counteroffer lands.
Running down the current employer, which pushes the candidate to defend them.
Frequently asked questions
Should a candidate accept a counteroffer?
It depends on why they wanted to leave. If the issue was only pay and the counter fixes it, staying can be reasonable. If the reasons were growth, management or culture, a raise often leaves the real problem in place.
When should recruiters talk about counteroffers?
Start on the first call when you learn why the person wants to move. Return to it when the offer is made and again before they resign. Repeating the conversation helps candidates make a calm decision.
How do you tell a candidate might accept a counteroffer?
Warning signs include vague reasons for leaving, a focus only on pay, reluctance to set a resignation date and slow replies after the offer. These do not prove anything, but they are worth a direct conversation.
