How to Handle a Counteroffer From a Departing Employee

When a valued employee resigns, the instinct to make a counteroffer is natural, but it's worth thinking through carefully rather than reacting immediately.

Understand why they're actually leaving

If the reason is purely compensation, a counteroffer might work. If it's about growth, management, or culture, a pay increase alone often just delays the same departure by a few months.

Consider the precedent it sets

Other employees may notice, and it can create an incentive for people to threaten resignation as a negotiating tactic rather than raising concerns directly.

Have a genuine conversation regardless

Even if you don't counter, understanding the real reasons behind a resignation is valuable information for retaining others on the team going forward.