Counter Offer Negotiation

Navigating Counter Offers from Your Current Employer

When you receive an external offer and your current employer makes a counter offer to keep you, you're in a delicate situation. First, only share the competing offer if you're genuinely willing to leave. Using an external offer as a bluff to extract a raise is risky — if they call your bluff, you either have to leave (potentially before you're ready) or stay with damaged credibility. Frame the conversation honestly: "I wanted to let you know that I've received an offer from another company. Before making a decision, I wanted to have an open conversation with you about my role and compensation here." This signals that you're considering their response, not issuing an ultimatum.

When your employer asks for details about the competing offer, share the relevant information but keep the focus on your value and career growth, not just the money. "The offer is $95K with a $10K signing bonus, but what really attracted me was the opportunity to lead projects and grow into a senior role. I love working here, but I've felt limited in my growth opportunities and I think my compensation hasn't kept pace with my contributions." This makes the conversation about more than just matching a number — it's about addressing the underlying reasons you were open to leaving in the first place.

Be prepared for your employer to say no or to make a counter offer that doesn't fully address your concerns. If they counter with only a modest raise that doesn't match the external offer, you need to decide what matters more: the money or staying with a known environment. Statistics show that most people who accept counter offers leave within 12-18 months anyway — the underlying issues (limited growth, lack of recognition, cultural misfit) rarely get fixed with just a salary bump. If your employer matches or exceeds the external offer but you still have reservations about staying, trust your gut.

Have a clear decision timeline and stick to it. If you tell your current employer "I need to respond to the other offer by Friday," give them a firm deadline and follow through. Don't drag out the process or play companies against each other repeatedly — it erodes trust and makes you look indecisive. Whatever you decide, commit fully. If you stay, recommit to your current role and don't use this as leverage again in six months. If you leave, do so professionally with proper notice and gratitude for the opportunity. Counter offer negotiations can strengthen your position, but handle them with integrity or they can backfire spectacularly.