How can you handle counteroffers?

• A. Gather information, address concerns, emphasize long-term value, and potentially redefine the offer or role
• B. Automatically accept the counteroffer
• C. Terminate the candidate
• D. Increase base pay to the maximum value without discussion

Answer: (A)

Counteroffers come up when a candidate has an external offer and also hears from their current employer. The best approach is to gather information about what the candidate truly wants and what’s driving the counteroffer. Ask about priorities—salary, growth, impact, team fit, culture, and work-life balance—and listen carefully to the underlying concerns. Then address those concerns directly by articulating the long-term value of the new role: how it aligns with the candidate’s goals, the impact they can have, and the opportunities for development and progression over time.

If it makes sense, adjust the offer or the role to better meet those needs. This could mean refining responsibilities, outlining a clear career path, adding development opportunities, or offering flexible arrangements and other non-monetary benefits that matter to the candidate. The goal is to determine whether there’s a genuine, lasting fit that a counteroffer can’t easily resolve, and to proceed thoughtfully rather than reacting with an automatic pay increase or by prematurely ending the process.

Simply accepting a counteroffer or dramatically increasing pay without discussion tends to be risky: it can overlook the candidate’s core motivations and set unsustainable expectations, while terminating the candidate or haphazardly inflating compensation can damage the recruitment process and budget.