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Star Employee Retention: Strategies to Winning the Negotiation

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Star Employee Retention: Strategies to Winning the Negotiation

It’s the conversation every manager dreads in a hyper-competitive job market. 

Your top performer, the engine of your team’s success, sits across from you and says the words that trigger immediate alarm: “I’ve received another offer.”

In an instant, you’re on the clock. 

This isn’t just about losing one employee; it’s about the potential loss of critical projects, team morale, and institutional knowledge, not to mention the staggering cost and time required to recruit a replacement of similar caliber. 

In a talent landscape where skilled professionals are more mobile than ever, your reaction in these first few hours is a critical test of leadership.

Do you immediately match the offer? Do you focus on non-monetary perks? Or is it already too late? 

This high-pressure negotiation requires more than just a budget; it requires a strategy. 

To build a playbook for this exact moment, the HR Spotlight team asked a panel of seasoned HR and business leaders a crucial question:

“If your top performer discloses a competitive job offer from a competitor, what urgent retention strategies would you bank on for a successful negotiation?”

Their responses offer a masterclass in crisis management, revealing the blend of emotional intelligence, financial acuity, and strategic thinking required to navigate this critical conversation and retain the talent that matters most.

Read on!

Tiffany Ingram
CEO, Luxe Link Business Solutions

Tiffany Ingram – Luxe Link Business Solutions

With 15+ years in HR, I’ve worked across industries like tech, finance, and healthcare—so I know firsthand that retaining top talent isn’t just about throwing money at the problem. 

It’s about building a culture where people feel valued, challenged, and seen.

When a top performer gets a competitive offer, the key is understanding their why. Is it career growth? Flexibility? A need for more leadership exposure? 

Once you know that, you can craft a retention strategy that truly resonates. 

If growth is the driver, show them their next steps. If work-life balance is key, rework their schedule. And if they just want to be seen, give them executive visibility and high-impact projects.

Retention isn’t about reacting when they’re halfway out the door—it’s about making them never want to leave in the first place.

Victoria Milford
CEO, Reward Heads

Victoria Milford – Reward Heads

Everyone likes to feel special and top performers even more so, hence personalise and don’t be generic.

Meet with them, note the offer and understand if a counter offer would be possible. Express appreciation for their contribution and ensure they know how valuable you see them. Understand their motivation for the move— salary, career growth, work-life balance, company culture.

Counter with a compelling offer that aligns with their priorities, – salary increase, performance-based bonuses or LTIPs to keep them here long term. If it is about promotion, provide a clear career path with mentorship, new responsibilities or opportunities to enable them to grow.

Finally, address any workplace concerns and reinforce company culture – i.e. emphasising unique benefits like flexibility, recognition, or meaningful work.

But never promise something that you cannot deliver or you’ll be back here again in no time.

Rachel Platt
SPHR, SHRM-SCP, PLATTinum Consulting

Rachel Platt – PLATTinum Consulting

The best way to retain a top performer is to not wait until they have a competitive offer.

Strong leaders have ongoing conversations about career aspirations, growth opportunities, and what makes their employees feel valued.

Every individual’s motivation is different. But if a competitive offer is on the table, the most powerful thing you can do is to ask questions. “What about this opportunity is compelling enough to consider leaving? And what would it take to change your mind?”

Guessing which lever to pull, whether it’s compensation, flexibility, career growth, or something else, rarely leads to long-term retention.

Instead, listening with curiosity and responding with a customized solution increases the likelihood of keeping your best people invested in your organization’s success.

Iqbal Ahmad
Founder & CEO, Britannia School of Academics

Iqbal Ahmad – Britannia School of Academics

As a CEO, I have come across this type of situation a couple of times and retaining top talent is a priority. In this situation, my first and foremost approach is to look for the driver that causes him to think of leaving. 

I make my plan that directly aligns with their aspirations. If pay range is an issue, I test the viability by giving a counteroffer. 

A top performer who has spent considerable time in my organisation should know how much I stress over the professional development of my employees. 

I would definitely highlight those so they can focus on their long-term benefits. 

In addition to keeping top performers for the long run, I want to re-engage and motivate them and increase their dedication to our common purpose.

Luca Dal Zotto
Founder, Convert Bank Statement

Luca Dal Zotto – Convert Bank Statement

As a business owner at Convert Bank Statement, I’ve started and run businesses where retaining high performers is key to our success. When a high performer receives an imminent competitive offer, there is no time to lose.

This is what gets the job done:

Act Fast and Personalize Your Approach: High performers must be rewarded. In a LinkedIn survey, 94% of employees would stay longer if their organization invested in their professional development. Offer a personalized retention package, like a salary increase, performance bonuses, or stock options.

Career Advancement Opportunities: A Gallup survey found that 87% of millennials prioritize professional development. Provide a clear career development opportunity, mentorship, or leadership development to show interest in their long-term success.

Flexibility and Work-Life Balance: According to a Gartner survey, 43% of employees are more productive if they work with flexible work arrangements. Offer remote work, flexible working hours, or additional vacation days to meet employees’ personal needs.

In my experience, investing in these areas not only keeps the best talent but also boosts morale and productivity throughout the team.

Marco Manazzone
CEO, Zzone Homes

Marco Manazzone – Zzone Homes

Initiating an open dialogue with the employee is a pivotal step for me.

I address the situation in a non-confrontational manner, expressing my appreciation for their work and my desire to understand their career aspirations.

This conversation can provide me with valuable insights into what they value in their professional life and what might be tempting them to consider other offers.

By showing that I am willing to listen and respond to their needs, I can often counter the allure of a competitor’s proposal with tailored opportunities within my own organization.

Hayden Cohen
CEO, Hire With Near

Hayden Cohen – Hire With Near

If you want to retain your top performers, you need to know what it is they’re after.

I’ve had great employees who just wanted to be left alone to do what they’re good at, and ones who wanted to reach the C-suite by age 30.

No matter what their goals are, making sure they’re being fairly compensated is an essential first step. If someone can make more money somewhere else, they’re probably going to do it sooner or later.

Beyond that, take the time to talk with your top-performing employees (and all the others too) about their career goals, and look for ways to help them reach them.

Offer the chance to learn new skills, greater levels of responsibility, more flexibility, or whatever else they’re after.

If they feel like you’re working to support them and make their career what they want it to be, they’re going to stick around.

Edward Hones
Founder, Hones Law

Edward Hones – Hones Law

Retention Strategies with Legal and Practical Considerations: When a top performer discloses a competitive job offer, employers should first tread carefully, especially in how they respond.

From a legal standpoint, it’s critical to avoid knee-jerk counteroffers that could inadvertently create contractual obligations or discrimination claims if other employees in similar roles aren’t offered the same retention incentives.

Instead, I advise employers to take a structured approach: acknowledge the offer professionally, gather information on the employee’s motivations, and assess whether a retention package aligns with the company’s long-term goals.

If pay is the primary issue, a salary adjustment might be warranted, but if the concern is career growth, then a clear development plan or leadership track should be presented.

Balancing Retention with Legal and Cultural Considerations: Employers should also be mindful of potential non-compete or confidentiality concerns, but this must be handled lawfully, overly aggressive restrictions can be unenforceable or even backfire by pushing the employee away.

Instead of reactive counteroffers, I encourage companies to take a proactive approach to retention by ensuring competitive compensation, fostering a strong workplace culture, and offering long-term incentives like stock options or flexible work arrangements.

If the employee ultimately decides to leave, the company should ensure a professional offboarding process that protects intellectual property and maintains goodwill.

The goal is to retain talent strategically while safeguarding the business from legal and reputational risks.

Soumya Mahapatra
CEO, Essenvia

Soumya Mahapatra – Essenvia

If you don’t know what your top performers’ goals are, you aren’t going to be able to retain them effectively.

Regular raises are a good place to start, but you’ll likely need more than that to keep your best talent.

Work with them to put them on a track for the job they’re really after, whether that means staying in their current role for the foreseeable future or moving up into leadership.

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

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

Recent Posts

Retaining Top Talent: The Counter-Offer Playbook

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Retaining Top Talent: The Counter-Offer Playbook

It’s no less than a leadership test in today’s job market. 

Your star player, the engine of your team, drops the news: “I have another offer.”

Suddenly, the pressure is on. The clock is ticking, and the stakes are huge. 

You’re not just fighting to keep one person; you’re fighting to protect your projects, your team’s momentum, and all the valuable knowledge they hold. 

In a market this hot, finding a replacement is a costly and time-consuming battle.

With top talent more mobile than ever, your next move is everything. 

Do you jump to match the salary? Highlight the culture and growth opportunities? 

This isn’t just a budget decision; it’s a strategic play that requires a smart and ready playbook.

To get that winning playbook, the HR Spotlight team went straight to the experts—seasoned HR and business leaders who navigate these high-stakes situations for a living. 

We asked them for their best advice and their answers are a powerhouse guide to blending sharp negotiation with smart leadership, giving you the tools you need to keep the talent you can’t afford to lose. 

Read on!

Tawny Lott Rodriguez
Fractional CHRO & Consultant, rowlandhall

Tawny Lott Rodriguez

If my top performer gets a competitive offer, my first move is a real, human conversation. Not just about money, but about “why” they’re considering leaving.

If I can match the salary, great. But let’s be real, most HR folks don’t have that luxury.

So I dig deeper. Do they feel stuck? Want more growth? A different manager?

Sometimes, small changes can make a big impact.

I’ve had honest talks where people realize they don’t actually “want” to leave, they just need something to get excited about again.

I always tell them, “The grass is greener where you water it.”

If they still go, I make sure they leave feeling valued because people boomerang back more often than you’d think.

Jonathan Faccone
Managing Member & Founder, Halo Homebuyers

Jonathan Faccone – Halo Homebuyers

Adjusted Pay: Look at and maybe change their salary package to match the important job they do and what others in the market earn, making sure it is fair and motivating.

Career Development Opportunities: Help them grow professionally inside the company, like chances for leadership positions, advanced training classes, or new project tasks that match their interests and job goals.

Work-Life Balance: If possible, give more flexible work conditions. This can be remote work choices or changed hours to fit their lifestyle needs better.

Kimberly DeCarrera
Fractional General Counsel & CFO, Springboard Legal

Kimberly DeCarrera – Springboard Legal

The most effective strategy will be the one that is tailored to the particular employee. It will require a discussion of what they desire out of the job – more money, more time off, hybrid or remote work, better career development opportunities, or a better boss.

My question is whether you want to keep the top performer after they come to you with a job offer from a competitor.

In my experience, any strategies that you counter with will only last about six months, before a new offer is accepted. If you use that time to onboard or train a new top performer, then it will be time and money well spent.

But if you have a top performer that is actively seeking new employment or entertaining offers, there is a reason.

Many strategies are going to end up being too little, too late. Even with a successful counteroffer, you should prepare to lose the employee in the short term.

Madan Chaolla Park
CEO, Zatjob

Madan Chaolla Park – Zatjob

When top talent comes with a competitive offer and asks for a raise the situation is usually rather binary (or black and white).

Scenario 1: They love their job, they’re thriving, but you’ve been underpaying them. Give them the raise—no hesitation. You dropped the ball on market rates, and now it’s time to fix it.

Scenario 2: If they aren’t nice, and are not having a good experience at your company you need to let them go. If you give them a raise now, they are still going to search for another job in the meantime – so it’s just holding them for a few more months. If you start losing much of your top talent it’s a very bad sign.

At the risk of sounding cliche – the no. 1 reason people leave jobs is bad managers. So the real strategy to keep talent is having a great workplace (or paying them absurdly high rates, but then you wouldn’t have this problem).

Wesley Kang
Founder, 1099Cafe

Wesley Kang – 1099Cafe

When my top agent at 1099cafe got poached last year, I skipped the typical counter-offer panic.

Instead of just matching their offer, I sat down with her for an honest conversation about career trajectory. Turns out money wasn’t the main driver – she actually wanted more leadership opportunities and felt stuck. Within 48 hours, I restructured our team to put her in charge of our new agent training program with a revenue share component.

What worked wasn’t throwing cash at the problem but addressing the actual reason she was looking elsewhere. The competitor offered slightly more money but couldn’t match the entrepreneurial opportunity I created.

The key lesson is that when top performers get offers, don’t just negotiate compensation. Quickly identify and solve for their real motivations. Sometimes it’s recognition, sometimes it’s growth potential, rarely is it just about the base commission split.​​​​​​​​​​​​​​​​

Austin Rulfs
Founder, Zanda Wealth

Austin Rulfs – Zanda Wealth

When a top performer from my team brings up a competing employment offer, it is prudent for me to pay attention to their priorities. Whether their objectives are recognition, work-life balance, professional growth, or financial gain, there is a need to keenly understand their underlying motivations. Employees often only want to feel appreciated and heard.

Offering flexibility may also be beneficial in my experience. One of my important team members, for instance, appreciated the leeway I offered in the form of family time but even then, they were still thinking about accepting a higher-paying offer from a rival. I offered them a greater pay and made a slight change to their function to give them more responsibility after some candid discussion.

Maintaining open lines of communication and demonstrating an open mind as a leader are paramount in retaining excellent staff.

Kristie Tse
Founder & Clinical Director, Uncover Mental Health Counseling

Kristie Tse – Uncover Mental Health Counseling

When a top performer shares they have a competitive offer, it’s essential to act promptly and thoughtfully.

First, I would invite an open conversation to understand their motivations; financial, growth opportunities, or work-life balance. Using my experience as a therapist, I know that validation and understanding go a long way.

Once their needs are clear, I’d tailor a retention plan, whether it’s creating a pathway for advancement, offering additional resources, or flexible arrangements to align with their goals.

It’s important to address underlying issues that led them to explore other opportunities, not just focus on a quick fix.

Most importantly, I’d stay transparent and communicative during negotiations to build trust and show their contributions are valued.

Jon Hill
Chairman & CEO, Energists

Jon Hill – Energists

When you build a high-performing team, it’s natural that competitors will take notice and try to lure some of those exceptional employees away. Because of that, I’d say it’s smart for leaders to be prepared for how they plan to hang on to top talent when they get another offer.

First of all, it is a positive sign if the employee informs you of the offer. This is a sign they haven’t decided to accept the offer and you can still retain them if you act quickly. Start by having an honest conversation with the employee about the offer—how tempted they are to take it and why, and what your company could do to entice them to stay.

Learning why they’re considering the offer is critical because it tells you where to start the negotiations. If salary is the biggest factor, then adjusting their compensation to be the same as (or higher than) the competitor’s offer could be enough to keep them on the team. In other cases, it may be more effective to discuss more flexible schedules, a remote or hybrid position, additional benefits like stock options, or career advancement through a promotion, expanded responsibilities, professional development, or leadership opportunities.

In some cases, you may not be able to compete with the competitor’s offer, and some talent loss is inevitable in a business. However, if you address the specific reasons the employee is considering the offer, you have the best chance of keeping them on your team.

Joan Denizot
Founder, Zize Bikes

Joan Denizot – Zize Bikes

In an urgent retention scenario, my first step would be an open conversation to understand their motivations—whether it’s compensation, growth, or work-life balance.

I’d present a compelling counteroffer that aligns with their aspirations, whether through salary adjustments, performance-based bonuses, or equity options. Additionally, I’d emphasize long-term career growth by mapping out leadership or specialized roles tailored to their strengths.

Beyond financial incentives, I’d reinforce workplace culture, flexibility, and mission-driven engagement, ensuring they feel valued beyond numbers. If compensation is a key factor, I’d explore creative perks like additional paid time off, remote work flexibility, or personalized development opportunities.

Ultimately, people stay where they feel appreciated and have a clear vision of their future. Retention is about genuine investment in their success.

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

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

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The Stay Interview Landscape: Implementation and Alternatives

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The Stay Interview Landscape: Implementation and Alternatives

Organizations approach employee retention in a variety of ways, and the use of stay interviews is no exception. 

Some companies have embraced stay interviews as a core component of their talent management strategy, while others have opted for alternative approaches. 

In this post, we explore this diverse landscape, gathering insights from HR and business leaders across different industries. 

We asked them to share their experiences with stay interviews: those who conduct them detail their program’s objectives, frequency, core questions, and designated interviewers; those who don’t explain the factors that led to that decision. 

Their responses offer a valuable perspective on the strategic considerations involved in choosing the right retention strategies for your organization.

Read on!

Ashish Gaur
HR Consultant

Understand Employee Motivations Through Stay Interviews

We recognize the importance of employee engagement and retention. Stay interviews are valuable tools for understanding employee motivations, concerns, and expectations.

Why: They help identify factors that enhance job satisfaction and address potential attrition risks proactively.

When: Typically conducted annually or biannually, or when key talent shows signs of disengagement.

What: Discussions focus on career growth, work environment, challenges, and suggestions for improvement.

Who: Conducted by HR or direct supervisors to foster open and constructive dialogue.

If you’d like to explore best practices or implementation strategies, I’d be happy to share insights based on my experience in HRM and employee engagement.

Angela Heyroth
Principal, Talent Centric Designs

Conduct Engagement Chats Regularly

Stay interviews are intentional conversations you have with your employees about what they like about your organization, what they may need changed in order to continue growing or staying motivated, and if they are feeling valued.

I like to encourage all people leaders to have them at least annually, rather than reserving them for when there is a turnover crisis or you think someone is about to quit. 

By scheduling them on a recurring basis (annual, biannual, or quarterly) and calling them something like “Engagement Chat,” “Career Check-in,” or “Touch-Base Conversation,” it becomes less focused on a checkbox and more focused on getting feedback from the employees to ensure that the environment continues as one in which they can engage and be challenged, as well as help them see how great they are doing and how well a match they are to the company so they don’t consider leaving. 

Whatever you call it, it should be clearly different from a standard one-on-one or a performance check-in.

Some great questions to consider are:

What have you felt really good about accomplishing so far this year?

How close does this role match your dream job?

What’s been your worst day so far this year and how can I make sure that’s not repeated for you?

What talent do you have that I can better leverage?

Ann Kuss
CEO, Outstaff Your Team

Integrate Stay Interviews Into One-On-Ones

Stay interviews are one of the most valuable yet underrated retention tools.

We don’t treat them as formal sit-downs but integrate them naturally into one-on-ones and key milestones. This way, employees feel comfortable sharing real insights rather than rehearsed answers.

Every manager in our organization is equipped with a framework to ask the right questions, listen actively, and identify patterns across teams.

The goal isn’t just to understand why people stay but to spot early warning signs before they consider leaving.

A few things that make these conversations effective: timing matters–we avoid scheduling them during high-stress periods or major deadlines. We also group insights across teams to implement meaningful changes instead of treating feedback in isolation.

The key? Undivided attention and follow-up. If employees take the time to share, they need to see action.

Stay interviews work when they lead to real improvements — not just another checkbox in HR’s playbook.

Gearl Loden
Leadership Consultant & Speaker, Loden Leadership + Consulting

Act on Stay Interview Insights

At our organization, we believe that listening to employees isn’t just good leadership–it’s smart strategy.

One of the ways we do this is through stay interviews.

Our team visits each campus and facility, meeting one-on-one with a select group of employees who have been with us for at least three years.

These candid conversations go beyond surveys, uncovering what truly matters to our employees–why they stay, what keeps them engaged, and where we can improve.

And we don’t just listen–we act.

Thanks to the insights gained from stay interviews and employee surveys, we’ve made meaningful, employee-driven changes.

We’ve revamped how we communicate our benefits program, introduced an employee gym, increased sick day payouts, and added bereavement days to better support our team.

These changes have made a difference.

Since implementing stay interviews, we’ve seen higher engagement, stronger retention, and a workplace culture that people want to be part of.

One long-term employee recently shared, “Knowing my feedback directly led to real changes makes me feel valued in a way I haven’t experienced elsewhere.”

If you’re not conducting stay interviews, now is the time to start.

Listening and acting on employee feedback isn’t just about retention–it’s about building a workplace where people thrive.

Max Shak
Founder & CEO, Zapiy

Foster Continuous Engagement

At Zapiy, we believe in open, ongoing conversations with our team, but we don’t conduct formal stay interviews in the traditional sense. Instead, we focus on continuous engagement through regular one-on-one check-ins and team feedback loops.

Why? Because we want to catch small frustrations before they become big reasons to leave.

We’ve found that when employees feel heard only once a year in a structured “stay interview,” it can feel like a formality rather than a meaningful dialogue. Instead, we foster an environment where feedback is always welcome, whether it’s in a structured meeting or a casual chat.

That said, if I were to implement stay interviews, I’d prioritize:

When: Every six months, to identify trends early.

Who: Every team member, with direct managers leading the conversation.

What: Honest discussions about job satisfaction, growth opportunities, and any roadblocks.

My biggest concern with formal stay interviews is that they can sometimes feel too little, too late.

If leaders are waiting until an interview to address engagement issues, they’ve already missed critical moments to listen, act, and retain great people.

Nikita Sherbina
Co-Founder & CEO, AIScreen

Head Off Problems with Stay Interviews

We conduct stay interviews at our organization and they’ve become a big part of our employee retention strategy.

The “why” behind them is simple: we want to know why our employees stay with us, what motivates them and what could make their experience even better. This helps us head off problems before they become turnover.

We do stay interviews during performance reviews or after a big milestone like a year with the company.

The “what” is about job satisfaction, work environment, team dynamics and areas for improvement. We ask about growth opportunities and if they feel valued and supported.

As for the “who”, the interviews are usually conducted by the employee’s direct manager or HR depending on the individual’s comfort level. We make sure it’s a relaxed non-judgmental conversation so employees feel safe to share their feedback.

These have helped us reduce turnover by highlighting areas that needed attention like better communication or more development opportunities.

They’ve been huge in building our company culture and making employees feel heard and appreciated.

Austin Benton
Marketing Consultant, Gotham Artists

Use Casual Coffee Check-Ins

We don’t do traditional stay interviews–frankly, they feel too much like performance reviews in disguise.

Instead, we have casual “coffee check-ins,” spontaneous, low-pressure chats where employees can genuinely share what’s going well and what’s getting under their skin.

These happen every quarter, no forms, no formalities, just authentic conversations. Managers initiate these, but anyone can request one anytime.

We’ve found this method opens up honest dialog far better than scheduled, structured sit-downs.

The informal setting lets people relax, speak freely, and actually voice what matters–rather than checking boxes to satisfy HR.

Mohammed Kamal
Business Development Manager, Olavivo

Boost Retention with Stay Interviews

Stay interviews are proactive discussions aimed at boosting employee engagement and retention.

They help organizations enhance retention by identifying factors that keep employees satisfied, pinpoint areas for improvement in the work environment, and strengthen relationships to foster loyalty.

By gauging employee sentiment early, managers can address potential issues before they escalate, creating a more inclusive and committed workplace.

Michael Kazula
Director of Marketing, Olavivo

Enhance Engagement with Stay Interviews

Stay interviews are discussions between managers and employees aimed at understanding the reasons for employee retention and identifying areas for improvement.

Unlike exit interviews, which focus on departures, stay interviews seek to enhance satisfaction and engagement, particularly crucial in the affiliate marketing sector where retaining skilled professionals is vital.

These interviews not only help retain talent but also foster enhanced employee engagement through active feedback.

Alex Cornici
Writer, Cheap Places To Go

Retain Talent with Stay Interviews

Stay interviews have become a cornerstone strategy for our organization to retain talent and ensure employee satisfaction.

Essentially, these interviews serve as a preemptive strike against potential employee turnover by allowing us to address concerns and gather feedback in a constructive manner.

We typically conduct them annually, providing a comfortable space for employees and managers to discuss current job roles, career aspirations, and potential areas for improvement within the company structure.

The “who” of these interviews often includes department leaders and HR representatives who are trained to conduct these sessions effectively.

They’re particularly keen on understanding the employee’s personal engagement and commitment levels, gauging their feelings toward the workplace culture and career development opportunities available within the organization.

This open dialogue helps us to tailor professional development more accurately and enhance job satisfaction, fostering a more committed and content workforce.

In conclusion, incorporating stay interviews has markedly improved our employee retention rates and workplace morale, proving to be an invaluable tool in our HR practices.

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

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

Recent Posts

The Art of Retention: Negotiating with a  Top Performer Considering Another Offer

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Tony Deblauwe - Terkel HR Spotlight

The Art of Retention: Negotiating with a Top Performer Considering Another Offer

The moment a top performer discloses a competitive job offer, a delicate negotiation begins. 

The outcome of this negotiation can have significant implications for the organization, impacting productivity, morale, and overall success. 

In this post, we introduce you to the art of retaining top talent in the face of competitive offers. 

We gathered insights from experienced HR and business leaders, asking them to share the urgent retention strategies they rely on for successful negotiations. 

Their responses offer a valuable perspective on how to approach these critical conversations, craft compelling counteroffers, and ultimately, convince your most valuable employees to stay.

Read on!

Dandan Zhu
Founder, CEO, DG Recruit

Understand Employee Motivation

Whenever counteroffer opportunities arise, the risks on both sides are significant.

Here are some factors to consider:

Why is the employee choosing to leave?: 

Besides the financial end of things which I’ll dive into shortly, THIS is the core issue to understand.

If the core issue of WHY the employee wants to leave is resolvable, a counteroffer endeavor would be worth exploring.Not only does the issue have to be resolvable, the solution needs to be SUSTAINABLE.

Many companies throw up a hail Mary to salvage the employee in the short term. THIS is why we have an industry average of 6-12 months of the employee quitting again.

To mitigate this risk, the employer has to have an honest discussion around their ability to resolve the employee’s RFL (reason for leaving) for longer periods of time.

Is it a money grab effort or a sincere financial adjustment?

Money matters and that’s a fact. Nobody goes to work for fun!

That said, is the financial ask reasonable per market rates or is the employee leveraging external factors to enrich themselves unreasonably and opportunistically?

How badly does the employer want to retain the departing employee?

If this person is a once-in-a-lifetime top performer, serious considerations need to be had because their departure could be detrimental to the wider team.

However, if the top performer possesses a terrible personality that is tolerated, how much should the employer fight to keep them on?

In Conclusion

Counteroffers, as much as people advise against them, happen in the real world – surprisingly more frequently than people think.

Handling them is an art. How you decide to proceed is either going to save you tens of thousands of dollars or COST you that amount (or more!).

Of course, replacing staff is never cheap – resources, both internal and external, along with losing effectiveness, getting behind on projects, opportunity cost, etc add up to a monstrous level quickly.

Often, counteroffers are a legitimate way to make the best out of a bad situation.

As attractive as that potentiality is, counteroffers could also fail within short order as employers find their staff leaving again in 6 months’ time in which they’ve now spent more money just to lose, yet again!

Facing both possibilities, both sides need to be as honest as possible about the issues they’re facing to reach a happy medium.

Otherwise, walking away, while painful in the short term, ultimately is the right decision.

Tony Deblauwe - Terkel HR Spotlight

Tony Deblauwe
Global HR Leader

Focus on Long-Term Engagement

When a top performer discloses a competitive offer, the key is to approach the conversation strategically rather than reactively.

Retention isn’t just about counteroffers–it’s about understanding why they’re considering leaving in the first place and addressing their long-term engagement.

The first and most important step is to listen.

Too often, leaders assume money is the sole driver, but in many cases, it’s about career growth, leadership, work-life balance, or a combination of factors.

If compensation is the only issue, matching or exceeding an offer might work, but if deeper concerns exist, simply increasing pay won’t create lasting retention.

Once I understand their motivations, I focus on three core areas: career acceleration, compensation, and executive alignment.

If career growth is their main concern, I explore ways to fast-track development opportunities, such as placing them on high-visibility projects, expanding their scope, or providing direct access to senior leadership.

High performers stay where they see a compelling future, and organizations that proactively create those pathways are far more likely to retain their best talent.

If the offer is significantly higher in compensation, I look beyond base salary to consider equity, retention bonuses, or performance-based incentives.

While competitive pay matters, top performers also want to feel valued in ways beyond their paycheck.

Beyond money and promotions, engagement often comes down to whether an employee feels truly seen and valued by leadership.

A direct conversation with an executive about their impact and future within the company can make a significant difference.

High performers want to know their work is recognized at the highest level, and sometimes, meaningful recognition and influence matter more than a salary increase.

Ultimately, the goal isn’t just to win this negotiation–it’s to ensure they don’t feel the need to explore external offers again in six months.

If the gap between what they want and what the company can realistically offer is too wide, a respectful and well-supported transition is better than a desperate counteroffer.

Real retention strategies start long before a competitor comes knocking.

When companies proactively create an environment where top talent sees a clear, compelling future, retention conversations become far less frequent.

Mohammed Kamal
Business Development Manager, Olavivo

Tailor Offers to Priorities

When a top performer receives a competitive job offer, immediate retention strategies are vital for negotiation.

Begin by understanding their motivations, such as salary, career growth, work-life balance, or company culture.

For example, a tech firm retained a key software engineer by having an open dialog about their reasons for considering the new offer, ultimately leading to a tailored counter-offer that addressed their priorities.

Justin Abrams
Founder & CEO, Aryo Consulting Group

Address Needs Quickly

It’s a sign you need to act fast. You don’t know exactly what’s driving their decision, but you do know that if you don’t address it, you risk losing a key team member.

Start by having an open conversation to find out if it’s about salary, career growth, or something else.

If it’s about money, consider matching or improving the offer, and if it’s about career opportunities, show them how they can grow within your company.

It’s not just about salary; think about what your company offers beyond pay, like flexibility or career advancement. Highlight these benefits to show that staying with you offers more than just a paycheck.

Ultimately, moving quickly and offering real value can make the difference between retaining or losing your top performer.

If you can address their needs, they’ll likely stay. But if not, you’ll have valuable insights to improve your future retention strategies.

Kerri Roberts
Founder & CEO, Salt & Light Advisors

Analyze Employee Data

Context is key in this conversation.

Has there been frustration in the past shared by this employee? Did you know they were potentially looking for another role?

Is there conflict between the employee and a colleague? Did they ask for increased responsibilities or an increase in pay and were denied?

Whether this is out of the blue, or there was a known reason they were searching for another role, I would work with your HR team (or the person in charge of employee compensation to learn the following):

– What was the employee hire date (what is their tenure)?

– What pay changes have occurred during their tenure

– What did the last performance review show?

– Where are they paid in the position pay band (10th percentile, 25th, median, 75th, 90th)?

– If they are a top performer and there is room for pay growth, how much?

– What is your philosophy on one-time bonus payouts versus base pay increases?

Ideally, if they are a performer and a cultural fit, we work to salvage them.

However, don’t waste the chaos.

While it’s painful to replace an employee, when they share they have another offer, it’s a great time to breathe and ask yourself – could we draw a better card from the deck?

We don’t have to counteroffer everyone. It’s not always the right choice for the organization.

Sometimes we just wish them well. But, if they ARE a great performer and they DO shine in the culture, come prepared with the answers to my questions above, listen to their reasoning, and see what you can do to make it work.

Aviad Faruz
CEO, FARUZO

Offer Tailored Incentives

If a top performer discloses a competitive job offer from a competitor, my urgent retention strategy would focus on understanding their motivations, offering tailored incentives, and reinforcing long-term career value.

Instead of immediately countering with money, I would start with a one-on-one conversation to understand what’s driving their decision–is it compensation, career growth, work-life balance, or leadership concerns?

Once I identify the key motivators, I would take a customized approach to retention.

If compensation is the main factor, a competitive counteroffer combined with performance-based incentives (such as bonuses or stock options) could reinforce their financial future.

However, if the issue is career stagnation, I’d outline a clear growth plan with leadership opportunities, mentorship, or skill development.

If work-life balance is the concern, flexibility in schedule or remote work options could make a difference.

Beyond immediate retention, I’d reinforce their long-term value within the company, showing how their contributions impact our success and ensuring they feel recognized and challenged.

I’d also assess if the broader team’s retention risks need addressing, turning this into a learning opportunity.

The key to successful negotiation isn’t just matching the competitor’s offer–it’s making the employee feel like their best opportunities still exist within the company.

Susan Snipes
Head of People, Remote People

Discuss Growth Opportunities

If my top performer were considering a competitive job offer, I would find out what their main motivating factor was for considering the move.

If the main concern was career advancement, I would discuss possible career growth opportunities within my firm.

I would be open to creative solutions like offering a title change and more interesting projects. Additional training opportunities could also be provided.

If my top employee’s main concern was compensation or benefits-related, I would evaluate what changes could be made to my total rewards strategy. For example, maybe I could offer a retention bonus.

As long as I know the main driving factor behind them considering leaving, I can work with them and think creatively to come up with a retention solution.

Michael Kazula
Director of Marketing, Olavivo

Assess Affiliate Motivations

To retain top-performing affiliates facing competitive job offers, it’s crucial to understand their motivations through one-on-one assessments.

During these meetings, discuss their career goals, what they value in your network, and the appealing aspects of the new offer.

This personalized approach can help negotiate effectively and ensure affiliates feel valued and motivated to stay within your network.

Ambrosio Arizu
Co-Founder & Managing Partner, Argoz Consultants

Offer Various Incentives

To retain a key employee who has received an offer from a competitor, the urgent strategies I would implement are:

Recognition and appreciation: Show them how crucial they are to the team.

Example: “Your work has been essential to the success of project X, and without you, we wouldn’t have achieved these results.”

Competitive offer: Evaluate and improve their compensation package, including salary, bonuses, and benefits.

Example: “We are willing to increase your salary and offer you more benefits to match what they are offering.”

Professional development: Offer growth opportunities and new challenges within the company.

Example: “We would propose you lead the new project Y, which will be a great opportunity for your career.”

Flexibility and well-being: Offer improvements in work-life balance.

Example: “We can offer you more flexibility in hours and remote work so you can enjoy more time with your family.”

These actions demonstrate a genuine commitment to their development and well-being.

Alex Cornici
Writer, Cheap Places To Go

Reassess Employee Value

When faced with the dilemma of a top performer considering a competitive job offer, the priority shifts swiftly to reassessing and readjusting the value you’re providing them.

It’s essential to engage in a candid and constructive conversation to understand their professional aspirations and any possible dissatisfaction they might be experiencing.

During this discussion, highlighting their invaluable contribution to the team and forecasting their potential growth within the company can rekindle their alignment with your organization’s vision.

An effective retention strategy would include a competitive counteroffer that addresses not only monetary compensation but also opportunities for career progression, additional responsibilities, or flexibility, which might align better with their current life situation.

It can also be useful to personalize benefits, such as professional development resources, enhanced work-life balance options, or even equity stakes, depending on what resonates most with your employee.

Often, employees are looking for signals that the company values their contributions and is actively investing in their future.

In the end, demonstrating a clear path of growth and fulfillment within the company can be a powerful motivator for an employee to stay and grow with the team.

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

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

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