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5 Most Successful Counter Offers to Retain an Employee

In a poll of workers, 42% of those who accepted a counteroffer from their present employer left the company in just three months, and 80% of those who took the counteroffer departed the company within a year. It can be expensive to lose a valuable employee. Not only will it cost thousands to replace them with a new employee due to downtime and hiring costs, but morale may also suffer if your other employees witness you letting talented employees leave the company without a second thought. These are the 5 most successful counteroffer to retain employees.

Numerous workers receptive to counteroffers don’t genuinely wish to quit their jobs. For them, the negotiation is a sort of plea for assistance or a way to persuade bosses who are being uncooperative to change their working circumstances. However, not every counteroffer instance is as simple. Other workers might be more adamant about leaving, and you’ll have to work much harder to persuade them to stay. So what can employers do to retain their best employees? They can make a counteroffer and retain employees, but what if the employee still wants to leave the organization even after receiving a great counteroffer? Let them go.

But before letting go of your best employees, you must make a successful counteroffer. And if you don’t know how to make a successful counteroffer, then don’t worry. Just have a look at this article.

What is a Counter Offer?

Counteroffer meaning can be understood by its importance too. When an employer responds to a job offer from another company by proposing a new employment offer to an existing or potential employee, this is known as a counteroffer. The offer can be focused on a raise in pay, a change in their job title or responsibilities, or a change in their schedule. 

An employer attempts to keep a current employee by agreeing to better pay or another perk.

How to Make a Counteroffer?

The purpose of making a counteroffer is to retain the employees. Managers or Employers can make a counteroffer for negotiating the salary. Depending on who makes the offer, the price may be greater or less than initially quoted. So if the employee receiving the original request doesn’t accept or reject it, they may decide to renegotiate the counteroffer. But before making a counteroffer, you should know how to make a counteroffer; the following points can help you with it:

1. Discover The Needs of The Employee to Make a Counteroffer

If you decide to make a counteroffer, you should ask the employee why they initially sought employment elsewhere. Do people believe they are being underpaid here? Your chances of giving the person what matters most to them are improved the more you comprehend their underlying motivations. Otherwise, you risk outbidding yourself on a salary only to find that you could have provided more time flexibility and a minor pay boost.

2. Emphasize Your Non-Financial Advantages 

Budgets for pay raises and incentives are sometimes limited in smaller businesses. So be sure to highlight all the great benefits of choosing your firm over the competition. You might be more accessible or closer to the employee’s house (by transit, walking, or cycling). Do you have a less formal, more cordial work environment? Do you provide individualized mentoring? You’re attempting to draw attention to the relative advantages that your business offers. In general, these may outweigh a 20% wage boost if you can make the employee feel valued. So try to provide non-financial incentives.

3. Try Not to be Overly Generous With Your Money

You might be able to match the rival’s compensation offer exactly, but you might not. Use this as a last resort only if you absolutely must meet their price, or even if you can afford to offer a premium above it. Indeed, some of your business’s relative advantages can partially offset the cost. In any event, income isn’t the only means to enhance compensation. Consider raising the employee’s education reimbursement. A well-liked benefit is the addition of an extra week of paid vacation.

4. Accepting To Part Ways

It might turn out that the employee is already planning to quit despite your counteroffer. Or perhaps you are unable to justify your offer. Your cherished employee will leave you anyway. If that happens, at least you’ll have tried to prevent it from happening unnecessarily. Ideally, you’ll part ways amicably. You have to understand that talent ebbs and flows. Budgets need to be followed. Therefore, you can’t always pay top money. However, if you’re losing your most exemplary employees due to internal issues, it’s time to consider doing some internal remodeling.

5 most successful counter offers

By making a counteroffer, you can show your employees you value them. You can appreciate them for their contributions to the company. But there are many ways you can make a counteroffer, but if you want to be successful, your counteroffer should have the thing that can benefit your employee. Here you can see 5 most successful counter offers you can make for your employees:

counteroffer to retain employees

1. A Higher Salary or Wage

A raise in income or wage is the most prominent counteroffer. According to a survey, most employees leave organizations because of lower pay. If your employee has received an offer with more money from another organization then there are more chances that your employee can leave your company. So try to increase your employee’s salary.

2. Increased Number of Hours of Flexibility

According to the study, greater hourly flexibility was the second most popular counter offer, with 13% of respondents ranking it second and the same percentage placing it third. Working from home or remotely more frequently came in fifth, which suggests that flexibility with hours rather than location would be a more effective counteroffer.

It’s crucial to remember that there is no “one size fits all” when it comes to flexibility. Each employee will value different types of flexibility, and frequently, outside variables like child-rearing obligations or living arrangements will be the deciding factor. Because of this, employers must poll their workforce and have a better understanding of what flexible working means to each person.

3. More Time Off Per Year

The demand for more extended yearly leave relates to a tendency seen to emerge during the epidemic and is the third most common sort of counteroffer. Many workers struggled to unwind at the end of the day due to blurring the lines between work and home. Yes, productivity did rise, but so did fatigue. Many businesses responded to the issue by providing more paid days off through programs like wellness leave, casual leave, or company-wide shutdowns.

4. Promotion at Work

Another frequent occurrence is when employees use a job offer from an outside source as leverage to get a promotion. In this case, a counteroffer with the promotion may work best. It implies that the employee is actively looking at alternative opportunities but that their motivation isn’t merely a desire for higher pay; instead, it’s the absence of internal movement.

This strategy includes the restriction that every promotion must be advantageous to both the employee and the employer. It might not be beneficial to create a new position just to keep a worker on board, especially if there is no modification to their duties or job description.

5. Being Able to Work More Frequently From Home or Remotely

As was already mentioned, everyone has a distinct definition of flexibility. But the urge to work more flexibly, regardless of location or hours, will undoubtedly continue. According to Microsoft’s research, more than 70% of employees favor maintaining flexible remote work choices.

The good news is that embracing flexible work is an easy win for many organizations. Because of lockdowns, technology for cooperation and communication is available, and many workers have already shifted to working remotely. So if your employee is working from the office and having some difficulties managing work-life balance, making a counteroffer by providing a chance to work from home will be beneficial.

Related Blog: How to Handle a Salary Counter Offer?


One of an employer’s biggest challenges is retaining employees by negotiating salaries with the candidates. But counter offers make it easy to maintain the employee. So before making a counteroffer, consider the factors discussed in the above article. But the counteroffer should be beneficial to the company too. So carefully think if the employee deserves a counteroffer or not.


1. Does the counteroffer work to retain employees?

The success rate of counter offers often less than 20% in large organizations. Accepting a counter-offer for someone leaving for a better brand also makes no sense because it would just be a temporary gain, and they would ultimately lose out. If the employee is essential for your organization, you should make a counteroffer or accept their offer. But before that must try to know the exact counteroffer meaning.

2. What can you do if an employee is not accepting a counteroffer?

Suppose you’ve tried your best from your side to retain an employee. However, if they’re not accepting it. Let them go. This is the best thing you can do.

3. Does making counteroffer damage your reputation?

Nope. A counteroffer is a strategy used to retain employees. 

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