Counteroffers

The employee resigns. The manager panics. And suddenly, there’s money available. Counteroffers can feel like the fastest way to save a valuable employee—but are they actually solving the problem? In this episode of What the Comp?!, Jennifer Loftus takes a closer look at why counteroffers often solve the wrong problem. When an employee has already interviewed elsewhere, received another offer, and imagined leaving your organization, adding more money may buy some time. But it doesn’t necessarily address why they wanted to leave in the first place. Jennifer explores how counteroffers can create unintended consequences, including internal pay inequity, salary compression, damaged trust, and a dangerous message to employees: the best way to get paid differently is to threaten to leave. You’ll learn: Why counteroffers are often reactive rather than strategic How outside offers can begin driving internal compensation decisions Why pay may be only one part of an employee’s decision to leave How counteroffers can affect employees who stay without threatening to resign What organizations should track after a counteroffer is accepted How proactive retention reviews can prevent compensation emergencies Why every counteroffer should trigger a deeper question about what caused the resignation Counteroffers aren’t always wrong. But they shouldn’t become your compensation strategy. Because the most important question may not be: “What will it take to keep them?” It may be: “Why did it take a resignation for us to act?” About What the Comp? What the Comp? – The Pay Strategy Podcast is hosted by Jennifer Loftus, National Director at Astron Solutions. Each episode helps human resources, finance, and organizational leaders make compensation clearer, stronger, and easier to explain. Subscribe for practical conversations on pay transparency, salary structure, market data, employee communication, and compensation strategy.