Counteroffers are a hot topic in recruitment, particularly in competitive industries like life sciences. Candidates often face a difficult question: should they stay with their current employer after receiving a counteroffer, or should they move forward with a new opportunity? On the other hand, companies must decide whether counteroffers are genuine retention strategies or merely quick fixes to avoid losing key talent.

At the heart of this debate lies a simple truth: the best outcomes for both candidates and companies begin with honest, proactive conversations.

Employees: Take Charge of Your Career

For employees, career advancement isn’t about waiting for the next opportunity to land in your inbox, it’s about taking ownership of your professional growth. Before considering a new role, ask yourself:

• When was the last time I asked for a raise or promotion?
• Have I received clear feedback about my performance and future growth?
• Do I understand what it takes to reach the next level in my current organization?

If you haven’t had these conversations with your manager and aspire to grow, now is the time. If you’ve been with your company for at least 12 months, initiate a discussion about a raise or promotion. If the response is vague, noncommittal, or delayed, whether due to budget constraints or organizational priorities, it’s a valuable indicator of where you stand and whether your aspirations align with your employer’s priorities.

If you eventually decide to explore new opportunities and receive a counteroffer from your current employer, ask yourself: Why now? If your value was clear all along, why did it take your potential resignation to prompt action?

Employers: Build Trust Before It’s Tested

For employers, counteroffers can seem like a necessary tool in today’s competitive labor market. However, they’re rarely a sustainable solution. Research indicates that as many as 80% of employees who accept counteroffers leave within 12 months. This is often because the underlying reasons for their job search such as limited growth opportunities, inadequate pay, or misaligned values remain unresolved.

Employers must be firm and clear about what someone must do to receive their requested raise or promotion.  If an employee comes to ask for a raise or promotion, this is a great sign that you have reacted a safe work culture which made them feel comfortable enough to have the conversation.  However, that does not mean you must grant the raise or promotion, it simply means, you need to be clearer and set more measurable goals for them to achieve.  Be very honest and outline the path to promotion or compensation increases.  The more real and blunt, the better, leave nothing to chance. And last but not least, do not over promise and under deliver.

To foster lasting employee engagement, focus on creating an environment where these conversations happen before resignations become a possibility:

• Conduct regular performance reviews and salary benchmarking.
• Encourage employees to share their career goals and provide actionable pathways to help achieve them.
• Be transparent about budget constraints or timing challenges and clearly communicate when opportunities for raises or promotions will arise.

The Psychology of Counteroffers

The counteroffer dilemma often reflects a breakdown in communication. If an employee feels undervalued enough to explore other opportunities, a reactive counteroffer is unlikely to fully restore trust. For employees, accepting a counteroffer can create lingering doubts about their role. Will they now be seen as a retention risk? Will the promised changes actually materialize?

Transparency is the solution. Employees should proactively advocate for themselves, seeking clarity about their value within the organization. Employers, meanwhile, should recognize that retaining talent requires more than matching a competitor’s offer. It demands cultivating a culture of trust, growth, and mutual respect.

A Practical Takeaway

At Harba Solutions, we’ve seen the best outcomes when employees and employers have open, candid conversations long before the offer stage. For candidates, we provide coaching on how to approach these discussions, ensuring you’re equipped to advocate for yourself effectively. For companies, we stress the importance of clear communication—no surprises.

Compensation and benefits are often the top drivers of employee satisfaction, but they aren’t the only ones. Support, growth opportunities, and a sense of value matter just as much.

If you’re seeking guidance on navigating these critical conversations, reach out to Wade at wade@harbasolutions.com. We’re here to help you achieve your goals, whether at your current company or beyond.