The Counter-Offer Trap: Why Buying Them Back Is a Bad Investment

It’s the moment every hiring manager dreads. Your top Estimator or lead Sales Executive walks into your office, closes the door, and hands you a resignation letter.

Panic sets in. You think about the vacancy, the lost revenue, and the headache of finding a replacement. So, you react instinctively: “What if we matched their offer? What if we added another $10k?”

In the heat of the moment, a counter-offer feels like a solution. But in the long run, it is almost always a trap.

At 2020 Search Partners, we advise both clients and candidates against counter-offers. Here is why “buying them back” rarely works in the Commercial MEP and Manufacturing world.

 

1. You Are Fixing the Symptom, Not the Disease

Money is rarely the sole reason a high-level professional leaves.

  • The Reality: They are leaving because of burnout, a lack of support, outdated technology, or a ceiling on their career growth.
  • The Result: If you give them a raise but don’t fix the broken estimating process or the lack of sales support, they will be just as frustrated in three months—only now, they cost you more.

 

2. The Trust is Gone

Once a resignation is tendered, the psychological contract is broken.

  • The Reality: You now know they have one foot out the door. When a promotion opportunity comes up in six months, will you give it to the person who tried to quit, or the loyalist who stayed?
  • The Result: The employee senses this hesitation. Statistics show that the vast majority of employees who accept a counter-offer leave voluntarily or are let go within 12 months anyway.

 

3. It Sets a Dangerous Precedent

If word gets out that the only way to get a substantial raise is to threaten to quit, you are incentivizing the wrong behavior.

  • The Strategy: Instead of a counter-offer, conduct a graceful exit interview. Learn why they are leaving so you can prevent the next one. Then, view this as an opportunity to upgrade the role.

 

The Bottom Line If they want to leave, let them. Use the budget you would have spent on the counter-offer to hire someone who actually wants to be there.

Need to replace a key player? Turn a resignation into an upgrade. Contact Us to find talent that matches your future, not your past.

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