A counter offer may seem like a good idea when someone resigns. But it’s not always the best solution. Yes, sometimes it works and everyone is happy, but more often than not, it’s not the best decision to make.

However, you know that it costs more to recruit someone new than to retain someone on a slightly higher salary. So we understand why so many companies try this approach. It’s true that offering more money can be enough to make someone stay. But the important question to ask is ‘for how long?’.

When you’ve been in the recruitment business for as long as we have, you get the hear lots of stories when it comes to counter offers. So we asked our team to share their advice on why you should always think twice before making that counter offer.

Before you make a counter offer, find out why this person resigned in the first place?

There are lots of reasons that people resign for a job, and it’s rarely just about salary. Whilst the news is full of stories of increasing salaries its not the only reason to move. We speak with many candidates on a daily basis, and with salaries just not keeping up with inflation, it’s less likely to be the only reason.

Therefore, it’s important to remember that there’s usually a secondary reason that’s made them want to make the move. It could be working hours, flexibility (or lack of it), lack of progression. A salary increase will only mask these issues for a matter of months.

Is it just a short term solution

A counter offer can be simply seen as a sticking plaster. It may fix things temporarily, but the underlying issues will still be there.

It’s a well-know fact in our sector that 80% of people leave within 6 months of accepting a counter offer and a staggering 90% within 12 months. However, as long as you are aware that a counter offer should only ever be seen as a short term solution, it may be the ideal fix for now? See it as a chance to buy you more time whilst you think what to do next. You may want to start thinking about hiring, as if your counter offer is a simple salary increase, it’s unlikely to be enough to solve the problem long term.

With recruitment taking longer than usual in the current skills shortage, it’s important to partner with an agency that you trust. Take a look at our testimonials from clients and candidates.


A counter offer could really backfire

Think that a salary increase when someone resigns will make them feel valued? Think again! It can have the totally opposite effect. They will be asking why you haven’t offered an increase before? Why has it taken for them to resign for you to see their value.? And is it their value that you really see, or do you not want the additional work of recruiting someone new?  

These are things that can have a negative impact on your team, as it’s likely that they will find out. People talk. Additionally, if you offering someone a salary increase to stay and the rest of the team hear about it, will you have to increase everyone’s salary? Or, worse still, will you lose more people are a result?

Accepting someone’s resignation can actually send a clear message that this isn’t the way to get a salary increase or additional benefits. There is a better way.

How we can help

Just yesterday (14.06) BBC News announced that the number of vacancies in the UK had hit record levels! The power is firmly in the candidates hands. If you’ve tried recruiting yourself recently, you’ll have no doubt noticed the shift in the market. Job adverts are not returning the results they used to and there are simply not enough candidates to go round!

So, what do you do if someone resigns and they need replacing with someone truly fantastic? This is where we can help. Pick up the phone to our specialist team of recruiters and we can get to work rod straight away. Our experience and our strong networks mean that we can act quickly. You could have CV’s, interviews, and an offer all within a week if that’s what you need.

Someone new can bring a breath of fresh air to your team. New skills, new experiences, and enthusiasm. So take time to think carefully when someone resigns. Is a counter offer really the answer?