Counter Offer

First published on Friday, June 19, 2020

Last updated on Friday, June 14, 2024

There will be times when one of your employees’ is looking to leave. This may be down to unhappiness, concerns with the role or have been offered another job.

One way you can keep your best employees is to make them a counter offer. This will not only show your commitment to them, but also save you hiring costs and overworking your remaining staff in the future.

In this guide, we’ll discuss what makes up a counter offer, along with examples and what to include when making an offer.

What is a counter offer in the workplace?

A counter offer is an offer made in response to another offer. But in the workplace, you will typically make a counter back offer when one of your employees’ is looking to leave. They may have secured a new role somewhere else, moving away or just want a change in career.

The accepting counter offers statistics range between 50% and 80% in Canada according to various studies These stats show that you should seriously consider this option with your employees.

The following are reasons for an offer:

  • By keeping your best staff, you retain their knowledge and training.
  • Saving any outgoings on advertising, hiring, and training a replacement.
  • To avoid overworking remaining staff, which could lead to decreasing productivity.
  • To maintain and build morale and team relationships.

It’s important you make any counter offers in writing, this will stop any confusion or potential conflict in the future.

How much should you counter offer?

There’s no limit to what you should and shouldn’t be offering. But when providing your employee with a counter offer proposal, you need to make sure you take your budgets in mind. Typically, a good range is between 10% and 20%.

Remember, as much as you want to keep them on board, you don’t want to overspend.

Example of counter offer letter

Below is what you should include:

  • Acknowledge the employee’s importance to your business.
  • Your sadness in seeing them go.
  • Indicate that you’ll be happy to have a discussion in a one-to-one meeting confidentially.
  • Make sure it’s not just based on a pay rise.

By having a meeting with your employee following the offer, this will again show their importance to the business. You need to make sure you do everything you can to retain your best staff.

How to handle a counter offer?

As an employer and as a person, make sure you don’t take things personally. Your employees aren’t always going to accept your counter offer, and they may still resign.

Make sure when putting forward your employer counter offer it doesn’t have to be purely based on salary. You should consider adding employee benefits to the package to make it more attractive to them, for example more flexible working opportunities.

It’s vitally important you keep any discussion regarding salary completely confidential. If other employee’s find out about any pay rises – this could potentially cause conflict and a drop in morale.

It may also cost you more money in the long run as more members of staff ask for a rise in pay.

Get help your counter offers today with BrightHR

Retaining your best staff is incredibly important. By offering a quality counter offer, this could mean they stay with you and continue their good work. To build a strong working environment, you need to keep your employees with you for a long period of time.

Our payroll navigator will help you to manage your employee pay, creating payroll reports in seconds.

Contact us on 18882204924 or book a demo today.


Janine Lennon

Head of Payroll Services

Share this article


More on pay and benefits

Average wage in Canada

Canada has one of the highest average wages in the world. But not all workers in Canada have the same average earnings. The number varies across ...

Read more about Average wage in Canada

Tips and Gratuities

Receiving tips from customers is one of the major benefits of working in some industries. Waiters/waitresses, taxi drivers, baristas, and valets all ...

Read more about Tips and Gratuities

Minimum Wage Increase

The Ontario Employment Standards Act outlines the responsibilities and rights of employers when it comes to pay. Changes are made to the ESA when ...

Read more about Minimum Wage Increase
Male business owner working out his employees salaries and wages

What is a salary, and how are salaries determined in Canada?

For many employees, understanding what factors determine their salary and how they can increase it is a crucial subject. Thats why as an employer, ...

Read more about What is a salary, and how are salaries determined in Canada?

Employee Pensions

Over years of employment, your employees will build up a monetary fund which they’ll receive when they choose to retire. This fund is known globally ...

Read more about Employee Pensions

Payroll Deductions

As an employer, you’re responsible for paying your staff for the work they do. This often includes bonuses, tips, commissions, vacation pay, salaries ...

Read more about Payroll Deductions
Apprentice working as an engineer

Apprenticeship Wages

There are countless benefits to hiring an apprentice. Many business owners in skilled trades hire apprentices to learn from the more experienced ...

Read more about Apprenticeship Wages

Employee Expenses

Sometimes your employees may need to spend money on business-related costs. This could include travel and hotel costs, vehicle rental, or buying tea ...

Read more about Employee Expenses

Benefits of giving bonuses to employees

In todays business environment, attracting top talent and employee retention depends on much more than a salary. Because employee loyalty is ...

Read more about Benefits of giving bonuses to employees