The Counter-Offer Problem Is a Retention Problem

Roughly one in five of our candidates receives a counter-offer, and the rate is highest in finance and technology. About a third accept. Of those, more than half have left within twelve months anyway.

Why they mostly fail

A counter-offer addresses the stated reason for leaving, which is usually money, rather than the actual reason, which usually is not. The candidate who accepts has demonstrated they were prepared to leave, which changes how they are viewed regardless of what anyone says at the time. And the salary correction that was available all along raises an obvious question about why it took a resignation.

When they do work

Counter-offers hold when the departure was genuinely and only about pay, when the correction is substantial rather than face-saving, and when it comes with something structural: a change of scope, a different manager, a defined path. On its own, money buys a few months.

What to do instead

• Benchmark your existing team annually rather than waiting for the market to tell you through a resignation

• Hold retention conversations while people are content, not when they hand in notice

• Treat a resignation as information about the role rather than about the person

• If you would counter-offer at £8,000 more, ask yourself why they are not already on it

If you are the candidate

Ask why this money was not available last month. The answer tells you whether anything has actually changed.