Navigating a Counter-Offer: A Values-Led Decision

The Crossroads of a Counter-Offer

Kelly Freeman, a Partner at Amrop Rosin in Canada and one of the leaders of Amrop’s Global Consumer & Retail Practice, shares a compelling case illustrating how a candidate’s decision to accept or decline a role is often driven by values and organizational leadership, highlighting the importance of culture over compensation. 

Kelly Freeman Amrop Consumer Blog

We were conducting a confidential search for a VP of Finance for a public retailer. The role was a highly technical one, involving public disclosures, audits, investor meetings, and Board connectivity – sometimes roles can be more broad, but this was very narrow and specific. 

The candidate pool was strong, but due to the specialized skill set, the market was limited. We identified a top candidate with extensive public accounting and leadership capabilities, a unique blend of both hard and soft skills - technical competency, leadership capability, and team development. 

When we went to make the offer, we informed the candidate they were our top choice. The proposed package was at the top of the company's range, slightly above what the individual was earning. However, upon resigning, the candidate’s current employer suddenly countered with a C-suite title, a significant salary increase, and other retention efforts in an attempt to persuade them to stay. 

It was a frustrating and emotional moment. The candidate had long requested a C-suite title and salary but only received these after announcing their resignation. Despite the offers and attention, money can only go so far: the candidate felt that the real answer was in the type of organization and leadership they aspired to work with. In the end, they chose to leave for a company that was aligned with their values - led by authentic leaders, and contributing to a purpose-driven organization. This decision underscored that, for many, culture and leadership transparency matter more than compensation. 

From a recruitment perspective, it was a nerve-racking process. Given that the client is a public company with quarterly reporting deadlines, we had a very tight window to onboard the right candidate. I tend to lean toward optimism, but I was anxious during those critical moments, especially when, at one point during a day described by constant calls and texts, communication from the candidate went silent. I gave them space, trusting that they would make the right choice. 

This experience reinforced a vital lesson: counter-offers are often just a Band-Aid, providing temporary satisfaction but rarely addressing deeper organizational issues. Statistics show that a majority of employees who accept counter-offers leave their employer within a short timeframe, with estimates ranging from 60% to 80% leaving within six months and as many as 80% to 93% leaving within 12 to 18 months. True retention requires fixing systemic problems and fostering an environment where people want to stay - not just throwing money at them. 

Ultimately, people want to work with great organizations and leaders they respect. While money is important, it’s not the only factor that motivates people. Candidates are driven by purpose, culture, and the values of an organization. Our role as recruitment professionals is to identify those fits and help clients build workplaces where people want to commit long-term. 

Key Takeaways

Values and organizational culture often outweigh compensation - candidates make decisions based on alignment with leadership, purpose, and culture, rather than just salary or titles.

Counter-offers are temporary solutions - they may retain talent short-term but rarely address underlying systemic issues.

Long-term retention depends on purpose and leadership - building workplaces rooted in values and authentic leadership fosters commitment and reduces the likelihood of candidates leaving after accepting counter-offers.

To find out more, reach out to Kelly Freeman or the Global Consumer & Retail Practice members in your country.