June 2025
What to Do When You Receive a Counter Offer
When we asked our LinkedIn audience if they would ever accept a counter offer, more than one-third answered, "It depends." This makes sense - there's a lot of factors to consider and questions to ask when contemplating a counter offer.
Before we get into what exactly those are, let’s first take a look at what a counter offer actually is. A counter offer is an offer from your current employer in response to your resignation. While a counter offer can take many forms, such as a salary raise or a promotion, its aim is to convince you to stay in your current position and decline the offer from the outside entity.
Counter offers by the numbers
0%
of employees leave within 6 months of accepting a counter offer
0%
of employees depart within a year of accepting a counter offer
0%
of employees resume job searching after accepting a counter offer
0%
of employees accept counter offers made to them
While some of the above statistics found online indicate that counter offers function more as band-aids and less as long-term retention tactics, counter offers can still be pretty tempting - especially if they include a higher paycheck at a firm where you've already established yourself. Still, however, it's important not to make the decision lightly, as it is one that has the potential to follow you throughout your entire career.
Reputational factors to consider
Your reputation is a critical factor to consider when contemplating a counter offer. Whichever you decide, it's important to act with transparency, professionalism, and respect for all parties involved along the way.
Sometimes, after accepting a job offer, circumstances change. If you need to withdraw, timing and communication matter. Backing out early in the process, ideally before signing a contract or giving notice, is generally understood by most employers, especially when done respectfully and with transparency.
However, withdrawing late can have unintended consequences. In industries like financial sciences and services, where professional networks are tight-knit, decisions can circulate informally and may impact your reputation or future opportunities. While it’s okay to change course, being mindful of how and when you communicate your decision can help preserve relationships and maintain your professional credibility.
You’ll also need to be okay with the fact that this door will likely be closed forever - the company may be hesitant to consider you for future roles, seeing you as someone who can’t be counted on to follow through and someone incapable of making firm decisions. It also calls your integrity into question - backing out post-offer may be interpreted as opportunistic, especially if it appears you used the offer to leverage a raise.
Letting it be known, intentionally or not, that you're exploring opportunities outside the company can subtly shift how you're perceived internally. Even if your performance remains strong, some leaders may begin to question your long-term commitment, which can create an invisible ceiling on growth or trust.
Deciding to stay after entertaining outside offers can also be interpreted as a transactional move, potentially weakening the alignment others perceive between you and the company’s mission or culture. This shift in perception doesn’t just affect leadership; peers may also respond differently, particularly if your decision to stay comes with a raise or new benefits. In close-knit teams, such dynamics can influence collaboration and morale.
There are special circumstances that are unique to certain sectors, however. In the sales & trading sector, for example, if an employee didn’t get promoted or receive their full bonus, some firms will suggest that they come back to them with a better offer and decide to price them up or not. Make sure you are familiar with the nuances of your industry so you can confidently answer whether the decision you make will actually help you advance, or if it will deteriorate trust with your employer. While counter offers may be common in some industries, that doesn’t mean the decisions won't have similar repercussions.
Additionally, some employers begin succession planning as soon as someone resigns. Even if you decide to stay, you may be excluded from strategic initiatives in the business, stunting your career growth. Management may be less likely to invest in your long-term development or consider you for leadership roles.
While it might feel flattering to receive a counter offer from your current employer, it’s important to consider how accepting it could affect your professional reputation - especially with those supporting your career growth.
If a recruiter brought you the opportunity, backing out last-minute can affect how proactively they represent you in the future. Colleagues or industry peers who provided references might feel caught in the middle if they vouched for your interest in leaving, as well.
Weighing the pros and cons of your counter offer
One of the most difficult aspects of these situations is that there isn't always a clear-cut, "right" answer. There are benefits and drawbacks to either scenario. Below we've outlined some of the most common pros and cons to accepting or declining counter offers in order to help you get closer to understanding what the "right" answer is for you and your career.
- You still want to be there. If you genuinely like the company, culture, and team - and your departure was more about circumstance than desire to leave.
- It’s a meaningful change, not just a raise. The counter offer includes real change (e.g. new role, promotion path, clearer leadership support), not just a reactive pay bump.
- You haven’t accepted another offer yet. Backtracking on an accepted offer can burn bridges. If you haven’t committed elsewhere, you have more room to reconsider.
- Underlying issues remain unresolved. A higher salary doesn't fix problems like poor culture, lack of growth, or bad management - those often resurface quickly.
- Temporary retention tactic. Many counter offers are short-term solutions for employers to avoid the disruption of losing staff - not long-term commitments.
- Stagnated career progression. Accepting a counter offer can stall your growth if your initial reasons for leaving were related to career development or role scope.
- You could be first in line during cutbacks. If layoffs occur, those who previously tried to leave may be seen as expendable.
Questions to ask about your counter offer
Receiving a counter offer is a big deal, and asking the right questions can help you make a clear, confident decision. Here’s a list of smart, strategic questions to ask yourself and your employer when you receive a counter offer:
- Why did I want to leave in the first place? Once you have a clear understanding of this, you'll be able to easily identify if the counter offer addresses this.
- How do I feel about staying now that I've resigned? Does it feel empowering, awkward, or uncertain?
- Do I trust this change is sustainable? If the answer is "no," this may have just been your employer's reaction to avoid disruption.
- Would I accept this offer if it came during my initial review or raise cycle?
- How does this compare to the new offer I have? Consider growth, culture, leadership, and compensation.
- Will this decision close future doors? Answer this question for both your current as well as potential employer.
- Whatever I decide, will either company feel misled? The answer to this question can also help you anticipate the impact this decision could have on your reputation.
- What has changed that makes this offer possible now? Understand if this is a knee-jerk reaction or a real shift in how they value you.
- How will my role or responsibilities evolve going forward? It's important to understand if additional opportunities for growth will open up as a result of this new agreement.
- What is the long-term growth plan for me here? Ask for specifics: development, promotions, leadership paths.
- How does this change impact my position in the team or company? Will leadership see you as loyal or a flight risk?
- Can you provide the new terms in writing? Protect yourself by getting everything promised formally documented.
- What support will I have to make this successful? Will the team, tools, or structure actually improve to meet new expectations?
- If I had not resigned, would this raise or promotion have come anyway? If the answer is "probably not," that is a red flag.
While counter offers can be tempting, it's crucial to assess whether they address the fundamental reasons you considered leaving in the first place. The best thing you can do is reflect on your long-term career goals and determine which option best supports those aspirations - and whichever option you decide to pursue, remember to see it through with professionalism, integrity and respect.