How to Handle Counteroffers in a Hot Texas Market
You have found the right executive. They have accepted your offer. Then they go to resign, and their current employer makes a counteroffer. Suddenly, your new hire is not so sure.
This happens more often than many companies expect, especially in a strong market like Texas, where good leaders are hard to replace.
Why counteroffers happen
When a strong executive resigns, their employer faces a hard problem. Replacing them could take months and cost a lot of money. Making a counteroffer may seem like the easier option.
Counteroffers often include:
- A higher salary or bonus
- A new title or promotion
- More stock or equity
- Promises of new projects or more authority
Why many counteroffers do not last
Accepting a counteroffer does not always solve the reasons the person wanted to leave. If they were unhappy with the culture, their manager, or their growth, a pay raise may not fix that. Many people who accept counteroffers end up leaving later anyway.
There can also be lasting effects on trust. Once an employer knows a leader was ready to leave, the relationship may change.
How to prepare
The best time to deal with a counteroffer is before it happens.
Talk about it early. During the interview process, ask the candidate why they are open to leaving. Ask what would happen if their employer offered more money. Their answer will tell you a lot.
Understand their real reasons. If the main reason for leaving is pay, a counteroffer is a real risk. If it is growth, culture, or a bigger challenge, money alone may not change their mind.
Make a strong, complete offer. An offer that is fair and well thought out is harder to beat. Make sure it covers pay, bonus, long-term incentives, and any bonus or equity they will leave behind.
Move quickly. The longer the gap between acceptance and the start date, the more time there is for doubts and counteroffers.
Stay in touch after the offer
Once the candidate accepts, keep them connected. Introduce them to future team members. Share plans for their first few months. Invite them to meet leaders over coffee or lunch.
A candidate who already feels part of the new team is much less likely to be pulled back.
The role of a search partner
A good search firm stays close to the candidate from first contact through the start date. That relationship can help spot concerns early and keep a strong hire on track.
Learn more
Contact our team to talk about how we support both employers and candidates through the offer and resignation process.