You made an offer. The candidate accepted. You're celebrating.

Then they call: "My current employer just countered with a higher salary. I need to think about it."

70% of candidates who accept counteroffers leave within 12 months anyway. But in the moment, they're torn.

Here's how to handle counteroffers without overpaying or losing great candidates.

Why Counteroffers Happen

Candidates resign. Employers panic and scramble to keep them.

Typical counteroffer:

• 10-20% salary increase
• Promotion or new title
• Promises of "things will get better"
• Guilt ("you're leaving the team hanging")

Why employers counter:

• Losing someone mid-project is painful
• Hiring replacements is expensive
• They don't want to look bad to leadership

Most counteroffers are reactive panic, not genuine commitment.

How To Respond When A Candidate Mentions A Counteroffer

Step 1: Stay calm

Don't panic. Don't get defensive. Don't increase your offer immediately.

Step 2: Ask questions

"What did they offer? Is it just salary, or are there other changes?"

"What made you start looking in the first place? Does the counteroffer address those reasons?"

Step 3: Remind them why they were leaving

"You mentioned you were frustrated with lack of growth opportunities. Does the counteroffer include a clear development plan?"

Most counteroffers are salary bumps without addressing root problems.

What To Say (And Not Say)

Good responses:

✅ "I understand counteroffers are tempting. What do you think has changed at your current company that makes you want to stay?"

✅ "70% of people who accept counteroffers leave within a year anyway. Will this really solve the issues you raised?"

✅ "If they valued you this much, why did it take you resigning for them to offer a raise?"

Bad responses:

❌ "We can match that!" (You're in a bidding war now)

❌ "You gave us your word." (Guilt doesn't work)

❌ "You're making a huge mistake." (Condescending)

When To Increase Your Offer (And When Not To)

Increase your offer if:

• The counteroffer revealed market data you didn't have
• You were below market and can justify adjusting
• The candidate is exceptional and worth it

Don't increase if:

• You're already at market rate
• The candidate is using you as leverage
• It would create internal equity issues

How to decide:

"Our offer was based on market data and internal equity. We believe it's fair. If salary is the only factor, I understand if you choose the counteroffer. But if career growth and the role itself matter, we're still the better choice."

The 70% Rule: Most Counteroffer Acceptances Fail

Research shows:

• 50-80% of employees who accept counteroffers leave within 6-12 months
• They're often first in line for layoffs (seen as flight risks)
• Original problems that drove them to look don't get solved

Share this with candidates:

"I want you to make the best decision for you. But research shows 70% of people who accept counteroffers end up leaving anyway. The issues that made you start looking—are they really solved?"

The Bottom Line

When candidates get counteroffers:

1. Stay calm, don't panic
2. Ask what the counteroffer includes
3. Remind them why they were leaving
4. Share the 70% stat (most counteroffer acceptances fail)
5. Only increase your offer if genuinely justified

Don't get into bidding wars. If a candidate chooses money over fit, they'll leave anyway when the next offer arrives.