What to do when your candidate receives a counter-offer

Counter-offers can put an accepted job offer at risk, even when the recruitment process has been managed well. Understanding why candidates consider them and how to respond can help reduce the risk of losing your preferred hire.

In this blog, we explain why counter-offers happen, how to handle them and how working with a specialist recruitment agency can help protect your hiring process.

What should you do when your candidate receives a counter-offer?

When a candidate tells you they've received a counter-offer, the priority is to understand what's been offered, why they're considering it and whether it changes their reasons for wanting to leave.

Respond calmly, thank them for being open and avoid immediately offering more money. A counter-offer doesn't automatically mean the candidate has changed their mind, and reacting too quickly can make the situation more complicated.

If you're working with a recruitment agency, involve your consultant early. They can discuss the candidate's concerns, revisit their original motivations and help establish whether the counter-offer genuinely changes their decision.

Ultimately, the candidate must decide what's right for them. Your role is to provide clarity about the opportunity you've offered and give them the information they need to make an informed choice.

Why do employers make counter-offers?

Understanding why a candidate's current employer has made a counter-offer can help you assess how seriously it might affect your hiring plans. There are several reasons why businesses try to retain employees who have resigned.

Replacing employees takes time and money

Losing an experienced employee creates additional costs for a business. Recruiting a replacement takes time, and there may be a period of reduced productivity while responsibilities are redistributed or a new employee gets up to speed.

A counter-offer can sometimes be a practical attempt to retain valuable knowledge and avoid disruption. For the current employer, improving someone's salary or benefits may be more straightforward than recruiting and training a replacement.

Employers recognise the value of retaining experienced staff

A resignation can prompt businesses to review the contribution an employee makes and whether their current package reflects their responsibilities. This might lead to an improved salary, a promotion or changes to their working arrangements.

In some cases, the employer may already have been considering these changes. The resignation simply brings the conversation forward.

They believe they can address the reasons for leaving

Not every counter-offer is purely financial. An employer may genuinely want to address concerns around progression, responsibilities, flexibility or working conditions. 

Some counter-offers lead to meaningful improvements for the employee, while others may not resolve the original reasons they started looking elsewhere.

Understanding what the current employer has promised, and whether those changes are realistic, helps you assess how attractive the counter-offer might be.

Why do candidates consider counter-offers?

Receiving a counter-offer can create uncertainty for candidates, particularly when they've already accepted another position. Considering one doesn't necessarily mean they're less committed to your opportunity. There are several reasons why someone might reconsider their decision.

The financial benefits can be attractive

A salary increase can be persuasive, particularly when it allows someone to improve their earnings without changing employers. If their current employer also offers additional benefits, a new title or improved flexibility, the overall package may become more competitive.

This is why benchmarking salaries and understanding candidate expectations early in the recruitment process is important.

Changing jobs involves uncertainty

Accepting a new position is an exciting step, but leaving an established workplace can also feel daunting. Candidates may be comfortable with their colleagues, familiar with their responsibilities and confident in their existing working environment.

A counter-offer can make staying feel like the safer option, particularly when someone is approaching their resignation or working through their notice period.

Communication drops after the offer is accepted

The period between accepting an offer and starting a new role can create uncertainty, particularly when a candidate's current employer is encouraging them to stay.

Regular communication helps maintain confidence in the move and gives candidates opportunities to raise questions or concerns.

A specialist recruitment agency can support both sides throughout the notice period, maintaining contact, addressing concerns early and helping candidates feel prepared for their new role.

What to do in the first 24 hours

When a counter-offer arises, responding promptly can help prevent uncertainty from affecting the candidate's decision.

The aim isn't to pressure them into joining. It's to understand their concerns, communicate clearly and agree on the next steps.

Thank them for being open

If a candidate tells you they've received a counter-offer, acknowledge their honesty. They may be weighing up an important career decision, and responding negatively could make them less comfortable discussing their concerns.

Thank them for keeping you informed and explain that you're happy to discuss anything they're uncertain about. Maintaining a positive conversation gives you a better opportunity to understand their position.

Work with your recruitment partner

If you're working with a recruitment agency, involve your consultant as soon as the counter-offer is raised. An experienced recruiter should already understand the candidate's motivations, salary expectations and reasons for considering a move.

They can discuss the counter-offer objectively, identify any concerns and help both parties agree on the best way forward.

Having someone who has supported the candidate throughout the recruitment process can be particularly valuable when navigating sensitive conversations.

Understand what the counter-offer involves

Before deciding how to respond, establish exactly what the candidate has been offered. Is it an increase in salary, a promotion, additional responsibilities or changes to their working arrangements?

More importantly, understand which parts of the counter-offer appeal to them. A candidate considering a higher salary may have different concerns from someone who's been promised a promotion or improved flexibility.

Knowing what matters most will help you decide whether any further discussion about your own offer is appropriate.

Revisit their original reasons for leaving

A counter-offer should be considered alongside the reasons the candidate started looking for a new role. If they wanted better progression, different responsibilities or a change in working environment, an improved salary may not address those concerns.

However, if their main reason for leaving was pay and their current employer has now addressed it, the counter-offer may be genuinely attractive.

Your recruitment partner can help revisit these motivations and establish whether the candidate's longer-term priorities have changed. The aim is to help them make a considered decision rather than persuade them to overlook a better option.

Avoid making immediate changes to your offer

It's tempting to respond with a higher salary, particularly when you've invested time in securing your preferred candidate. However, improving an offer without understanding the situation can create unnecessary pressure and lead to negotiations that aren't sustainable.

Instead, review what's been offered, consider your existing salary framework and agree on a clear response. If you need time to assess the situation, explain when the candidate can expect an answer and keep to that timeframe.

Should you improve your offer?

Sometimes improving your offer is appropriate, but a counter-offer shouldn't automatically trigger a salary increase. The decision should be based on the role, current market conditions, your salary structure and the value the candidate would bring to your business.

Improve it if your original offer was below market

If the counter-offer highlights that your proposed salary is below the current market rate, it may be worth reconsidering. Review the role against your existing salary bands and current market benchmarks.

If the original offer was too low, adjusting it could help ensure you're presenting a fair and competitive package. A specialist recruitment agency can provide additional insight into current salary expectations, recent offers and the packages employers are using to attract comparable talent.

Read more: How to set salary bands for your business

Hold firm if your offer is already competitive

If your offer reflects the market, the responsibilities of the role and your existing salary structure, increasing it may not be necessary. Matching every counter-offer can create inconsistencies within your pay framework, particularly if the revised salary exceeds what you pay employees in comparable positions.

Explain why you've positioned the offer at its current level and reinforce the wider benefits of the opportunity. Candidates may still decide to remain with their current employer, but that doesn't necessarily mean your original offer was wrong.

Read more: What to do when a candidate asks for more money

Consider what else you can offer

Salary isn't always the deciding factor when candidates consider changing jobs. Depending on their priorities, you may be able to strengthen your offer through other elements of the package.

This could include flexible working arrangements, additional training, clearer progression opportunities or a conversation with their future manager about their longer-term development.

An earlier salary review may also be appropriate, provided the expectations and criteria are clearly explained. Any changes should be realistic, approved and consistent with what your business can deliver.

Avoid entering a bidding war

Repeatedly increasing your offer in response to a candidate's current employer can create an unsustainable negotiation. It may also shift the conversation away from the role itself and towards which employer is prepared to offer the highest salary.

Instead, establish the best package your business can reasonably offer and communicate it clearly. If the candidate ultimately decides that remaining with their current employer is the better option, respect their decision. Securing the right hire is about more than winning a salary negotiation.

How to reduce the risk of counter-offers before they happen

Counter-offers can arise unexpectedly, but there are steps employers and recruitment agencies can take to identify potential risks and manage them throughout the hiring process.

Discuss counter-offers early in the recruitment process

Counter-offers should be discussed before an offer is made. Understanding why a candidate wants to leave, what might persuade them to stay and how they would respond to a counter-offer can help identify potential risks.

A specialist recruiter can explore these conversations throughout the recruitment process, giving employers greater visibility before making a hiring decision.

These discussions also give candidates an opportunity to consider their priorities before they're faced with a decision under pressure.

Read more: How to structure a final stage interview

Make the right offer first time

A competitive, well-structured offer gives candidates confidence in their decision to move. Benchmark the salary before making an offer, clarify the benefits package and make sure the candidate understands the responsibilities and progression opportunities associated with the role.

Your recruitment partner can help establish salary expectations beforehand, identify any concerns and provide insight into what comparable employers are offering. This helps reduce uncertainty at the offer stage and gives candidates a clearer basis for their decision.

Read more: How to create a job offer candidates want to accept

Maintain communication throughout the notice period

Communication shouldn't stop once an offer has been accepted. Regular contact from the hiring manager helps candidates feel welcomed, while a recruitment partner can maintain communication, answer questions and identify any emerging concerns.

This might include checking in after the candidate resigns, discussing their notice period or arranging an introduction to future colleagues. Working together helps keep candidates engaged and reduces the risk of unexpected withdrawals before their start date.

Help candidates prepare for their first day

Making the next step feel real can help candidates become more confident about joining.

Confirm their start date, provide the contract and onboarding information promptly and explain what they can expect during their first week. Where appropriate, introduce them to their future manager or team and share useful information about the working environment.

Your recruitment consultant can also help coordinate communication and ensure any outstanding questions are addressed. The goal is to make the transition feel organised and positive rather than leaving candidates uncertain about what happens next.

What to do if a candidate accepts the counter-offer

Even with a well-managed recruitment process, some candidates will decide to remain with their current employer.

While this can be disappointing, how you respond can influence your ability to move forward and maintain positive relationships.

Respect their decision

Thank the candidate for their time and wish them well. They may have legitimate reasons for staying, and it's important to respect their decision even when it affects your hiring plans.

Leaving the conversation on good terms also protects your employer reputation and keeps the relationship positive should circumstances change in the future.

Understand what influenced their decision

Where appropriate, ask what ultimately persuaded them to stay. Was it salary, progression, flexibility or concerns about leaving their existing workplace?

Understanding the reasons behind their decision can provide useful insight into your recruitment process and how future opportunities are presented.

Your recruitment partner can help gather this feedback and identify whether anything could be adjusted for similar roles.

Revisit your candidate pipeline

If a candidate decides to remain with their current employer, acting quickly can help minimise disruption to the hiring process.

A recruitment partner can reconnect with previously shortlisted candidates, review existing talent pipelines and identify suitable alternatives. This helps employers maintain momentum rather than starting the recruitment process again from scratch.

Where appropriate, you can also revisit candidates who performed well during earlier interview stages and remain interested in the opportunity.

Read more: How to give better candidate feedback

How can a recruitment agency help manage counter-offers?

Counter-offers are a normal part of recruiting employed candidates, and even a well-managed process cannot eliminate the risk entirely.

However, working with a specialist recruitment agency gives employers additional support throughout the hiring journey, from understanding candidate motivations to managing offers and maintaining engagement before someone starts.

Understanding candidate motivations

A specialist recruiter can explore why candidates are considering a move, what they're looking for in their next role and which factors matter most to their decision.

This information helps employers understand whether the opportunity genuinely aligns with the candidate's expectations. It also provides an opportunity to identify potential counter-offer risks before reaching the final stages of recruitment.

Managing salary and offer expectations

Recruitment agencies work closely with candidates and employers, giving them insight into salary expectations, market conditions and the packages being offered for comparable roles.

This helps businesses position offers competitively and address potential concerns before they're presented. When a counter-offer does arise, a recruiter can provide an objective perspective on whether the original offer remains competitive and whether changes are justified.

Maintaining candidate engagement

The relationship with a candidate shouldn't end once they've accepted an offer. A recruitment consultant can maintain contact throughout the notice period, discuss concerns and keep both parties informed about progress towards the start date.

This creates another channel of communication alongside the hiring manager, helping candidates feel supported as they prepare for their next role.

Protecting hiring momentum

If a candidate withdraws after accepting a counter-offer, a recruitment agency can help businesses move forward quickly.

Existing candidate relationships, previous shortlists and ongoing market knowledge can all support the search for a suitable alternative.

While no recruitment partner can guarantee that a candidate won't accept a counter-offer, having experienced support throughout the process can help employers manage the risk and respond more effectively when circumstances change.

How Digital Waffle can help you secure the right talent

Counter-offers are a common challenge in recruitment, and even a well-managed hiring process cannot eliminate the risk entirely. However, understanding candidate motivations, making competitive offers and maintaining communication throughout the process can help reduce unexpected withdrawals.

Working with a specialist recruitment agency adds another layer of support. From identifying potential counter-offer risks early to managing candidate expectations and maintaining engagement after acceptance, an experienced recruiter can help employers navigate difficult conversations and keep their hiring plans on track.

Need support finding and securing top talent? Submit your vacancy and one of our consultants will be in touch to discuss your hiring requirements.