Counteroffer Strategies: How to Retain High-Performing Employees

May 22, 2025

Losing a top-performing employee is a costly and disruptive event for any organization.

When that employee informs you they’ve received a competitive job offer from a rival company, the stakes are even higher.

Immediate and strategic action is required to retain this valuable talent.

In this post, we break down the critical moments following such a disclosure, exploring the urgent retention strategies that can make the difference between keeping a star employee and watching them walk out the door.

We asked HR and business leaders to share their go-to approaches for successfully negotiating with high-performing employees who are considering leaving, offering a practical guide for navigating this challenging situation.

Read on!

Levi Hemingway
Co-Founder, City Storage By Nomad Capital

Levi Hemingway

If a top performer at City Storage USA discloses a competitive job offer, the first step is to understand their motivation for considering the move.

Just like in storage, where customers choose a facility based on security, convenience, and value rather than just price, employees stay where they feel valued, challenged, and supported.

One key retention strategy would be reinforcing their long-term growth potential within City Storage USA. Just as we help customers find scalable storage solutions that grow with their needs, we ensure our employees see a clear path for professional development, whether through leadership opportunities, specialized training, or expanded responsibilities.

If compensation is a factor, we would explore performance-based incentives or benefits that align with their career goals, much like how we offer flexible leasing options to match customer needs.

Beyond financial incentives, reaffirming our workplace culture is essential. Employees stay where they feel engaged and connected. Highlighting our team environment, the impact they have on our success, and any upcoming company initiatives they can take ownership of reinforces their importance.

Much like storage customers who stay because they trust our service and security, employees stay when they feel genuinely valued and see a future with the company.

Abhishek Shah
Founder, Testlify

Abhishek Shah

The first step I would do is to understand their reasons for considering a move. A quick but meaningful conversation can help uncover whether it is about salary, career growth, work-life balance, or a better role.

Showing immediate appreciation for their contributions and reaffirming their value to the company is crucial. Employees want to feel recognized beyond just numbers, so making it clear that their career growth matters can set the stage for an open discussion.

If compensation is the main driver, a counteroffer should be competitive but also strategic. Simply matching the offer may not be enough, so proposing a long-term growth plan that includes performance-based incentives, stock options, or leadership opportunities can add more value.

If career growth is the concern, offering a structured roadmap for promotion, assigning them to a high-impact project, or providing executive mentorship can show commitment to their future.

Work-life balance can also be a factor, and adjusting remote work options, PTO, or wellness benefits can make a significant difference. Reinforcing their role in shaping the company’s future and helping them visualize their long-term impact can sometimes outweigh financial incentives.

Having a well-prepared, personalized discussion within 24 to 48 hours is crucial for retention, but if they still decide to leave, maintaining a positive relationship can keep the door open for future collaboration.

Natalia Lavrenenko
UGC & Marketing Manager, Rathly

Natalia Lavrenenko

Retention starts long before a competitor steps in.

When a top performer shares a competitive offer, speed matters. Counter with more than money. A personalized career path, leadership opportunities, or a high-impact project can shift the conversation.

One UGC creator on my team wanted to leave for an agency offering better pay. Instead of matching the salary, I handed them creative control over a major brand campaign. They stayed, delivered viral content, and felt valued.

Flexibility and recognition close more deals than a paycheck alone.

A talented editor once hinted at leaving, frustrated with workload balance. Instead of a raise, we restructured their role–fewer repetitive tasks, more creative freedom. Within weeks, they were engaged again, producing their best work.

Retention is about giving people what they can’t buy elsewhere.

Chris Giannos
Co-Founder & CEO, Humaniz

Chris Giannos

If a top performer discloses a competitive job offer, the first step is understanding their motivations beyond just salary. Is it career growth, flexibility, leadership opportunities, or company culture? A successful retention strategy requires addressing their core concerns rather than simply countering with a higher paycheck.

One urgent approach is personalizing a career development plan tailored to their goals. If growth is a priority, offering a leadership role, upskilling opportunities, or a clear path for advancement can reinforce their long-term value within the company. If flexibility is a factor, adjusting remote work policies, benefits, or workload balance can make a difference.

Another key strategy is reinforcing their impact and future potential within the company. Expressing genuine appreciation, outlining how their contributions have shaped the organization, and detailing how they fit into long-term plans can create an emotional connection that a competitor’s offer may lack.

If compensation is a driving factor, exploring non-monetary perks such as equity, bonuses tied to long-term performance, or project ownership can help make staying more attractive. The goal is to ensure they feel valued, see clear opportunities ahead, and believe that their best career path remains within your organization.

Noah Musgrove
HR & Marketing Specialist, Liberty Financing LLC

Noah Musgrove

If a top performer shares that they’ve received a competitive job offer, it’s important to respond thoughtfully and efficiently.

The first step is to have an open discussion to understand what’s driving their decision. Are they looking for higher pay, career advancement, or better work-life balance? Once you know their key motivators, you can explore ways to address their needs within your company.

If compensation is the main issue and a counteroffer is an option, it’s essential to ensure it aligns with company policies and long-term fairness.

However, retaining employees isn’t just about salary–offering growth opportunities, increased responsibilities, or more flexibility can be just as persuasive. Recognizing their contributions and outlining a clear path for future success within the organization can reaffirm their value.

The ultimate goal is to create an environment where they feel engaged, appreciated, and see a strong future ahead.

Dre Thompson
Full Cycle Talent Acquisition Specialist, Innomotics

Dre Thompson

If a top performer discloses a competitive job offer, my approach blends strategic negotiation with understanding the candidates desires and motivations.

First, I acknowledge their contributions and reaffirm their growth potential within the company.

Secondly, I assess their true motivators whether it’s compensation, promotion opportunities, or work-life balance.

If salary is the main factor, I explore competitive adjustments, but I also position long-term value through leadership opportunities, professional development, and impactful projects. If the hiring manager is aligned, there may be an opportunity to match the salary to keep the top performer.

Additionally, I highlight the unique advantages of staying, whether it’s cultural alignment, flexibility, or career stability.

Instead of a transactional counteroffer, I partner with all stakeholders to create a compelling career roadmap, reinforcing that their best growth opportunities exist within our organization.

In my opinion talent retention isn’t just about numbers; It’s about engagement, trust, and aligning aspirations with opportunity.

Leila Rao
Agile Coach, Cultural Cartography

Leila Rao

Job security, once a given in the federal workforce, is fading as contracts are abruptly cut in the name of “efficiency.”

As a small consulting business owner in the federal space, I know this scenario all too well. With an administration shift, many are navigating professional pivots, my staff included.

While I obviously want to retain my talented staff, my priority is transparency. If a more stable opportunity is best for you and your family, take it. I’ll even give you a referral.

I’m fortunate to lead a team aligned with my company’s vision, but alignment alone doesn’t guarantee retention during uncertain times.

Once, salary and benefits made an offer competitive; now, the differentiator is basic job security.

Dr. Tonya Jackman Hampton
Executive Coach & Speaker, Dr. Tonya Jackman Hampton

Dr. Tonya Jackman Hampton

If a performer discloses a competitive job offer, swift and strategic action is important, and you should keep the employee informed often during deliberation.

To respond, start with seeking to understand why they’re considering leaving and why the competing offer appeals to them—these are two distinct, critical questions. The employee will feel valued if you try to address their concerns.

Should they want to stay, refine their development plan, aligning it with their career aspirations. Address their concerns —whether it’s compensation, growth opportunities, work-life balance, or leadership dynamics. If immediate adjustments aren’t feasible, provide a clear objective and timeline for potential changes.

Collaborate if team dynamics are a concern to create an action plan. Engagement in problem-solving fosters commitment and shows you care.

Ultimately, counteroffers are not enough—it’s about ensuring they are able to thrive. When handled effectively, these conversations demonstrate advocacy, reinforce trust and strengthen commitment.

Cheryl Grace
CEO, Powerful Penny

Cheryl Grace

If a top performer gets a competing offer, don’t panic—get curious.

Were they actively looking, or did a recruiter come knocking? What’s making them consider leaving?

People want to feel valued, seen, and heard—it’s not always about money. Maybe they want more growth, flexibility, or just to know they matter.

Before throwing out a counteroffer, listen. What do they really want?

Then, tailor a retention plan that speaks to them—a leadership role, high-visibility projects, executive mentorship, or better work-life balance.

If culture is the issue, what can you shift? And don’t just focus on the now—paint a vision for their future with you.

At the end of the day, a successful negotiation isn’t just about matching a paycheck. It’s about making them feel like staying is the best decision they could make.

Ryan Gray
CEO, SGW Designworks

Ryan Gray

If your top performer is seriously considering a competitive job offer, that is a clear signal they are looking for something they do not think they can get with you, whether it is career growth, new challenges, or better compensation.

The first move should be a direct and honest conversation. Find out what is driving their interest. Is it just money, or are they feeling stagnant? Do they want a leadership role, a change in responsibilities, or a different work environment?

Once you understand what is missing, you can position your offer accordingly.

The best way to keep them is not just throwing more money at the problem, though, let’s be honest, that can help. Instead, show them a real pathway forward in your company.

If they are after career progression, map out what that looks like, whether it is a promotion, a lateral move into a different department, or a high-impact project that aligns with their goals. Make it clear they have room to grow without leaving.

And if salary is a factor, be competitive, but also reinforce the long-term benefits of staying, whether it is leadership opportunities, mentorship, or greater influence in the company.

Retention is not just about reacting to an offer, it is about proving why staying is the better move.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

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