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Counter-Offer – Good Idea or Not?

The decision to make a counter-offer when an employee resigns can be a tempting solution. At PSi Talent, we understand the delicate dance involved in retaining top talent and the considerations that come with it. Let’s delve into the nuances of counter-offers and why, in many cases, a strategic recruitment approach may be the key to long-term success.

  1. Unveiling the Root Cause: Before You Counter-Offer

When faced with a resignation, it’s crucial to uncover the underlying reasons driving the decision. While salary may play a role, our experience in the recruitment field has taught us that it’s rarely the sole factor. Candidates often have secondary motivations such as working hours, flexibility, or a lack of career progression. A counter-offer centred solely on salary may provide a short-term fix, but it’s essential to recognise that the core issues will persist.

  1. Short-Term Solution or Long-Term Strategy?

While a counter-offer might seem like a quick fix, it often acts as a temporary solution, akin to a sticking plaster. Research in our sector indicates that 80% of individuals who accept counter offers leave within six months, with a staggering 90% departing within a year. Understanding that a counter offer is a short-term measure allows for a momentary reprieve while considering more sustainable solutions, such as strategic hiring through recruitment agencies like PSi Talent.

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  1. Potential Backfire: The Impact on Team Dynamics

The decision to counter-offer a salary increase can inadvertently lead to negative consequences. Employees may question why the increase wasn’t offered earlier, potentially eroding trust. Team members might learn about the counter-offer, raising questions about salary parity and potentially causing further resignations. In contrast, accepting a resignation can signal that leveraging a counter-offer is not the optimal path for securing a salary increase or additional benefits.

  1. PSi Talent: Your Strategic Recruitment Partner

In a job market where candidates hold significant sway, navigating resignations requires a trusted ally. PSi Talent stands ready to assist. Our seasoned recruiters specialise in acting swiftly, providing you with a selection of great candidates. By partnering with us, you can access a pool of talent that brings fresh perspectives, diverse skills, and enthusiasm to your team.

Explore the PSi Talent difference today. Visit our website at to find out more. And don’t forget to follow us on LinkedIn, Facebook and Twitter.

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