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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?

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

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