The Downsides of Making a Counteroffer to Retain an Employee

Millions of Americans have said "I quit" and moved on from their organizations during the Great Resignation. As the talent pool shrinks, leaders are prepared to do anything to keep good employees from leaving. The counteroffer is a retention tool. A leader may counter with a promotion, a merit increase, a one-time bonus, or an opportunity to move to another team in fear of losing an employee. The counteroffer is perceived to have power. The author presents a number of downstream consequences if the employee accepts. Making a counteroffer to an employee who has resigned can do more harm than good.

A former boss told me that if I thought I should get promoted, I should go for another offer.