Why Companies Extend Counter Offers

Why Companies Extend Counter Offers

This differs from one organization to the other—but some reasons are:

  • It is much less expensive to keep an employee than to hire a new one.
  • There is quite a bit of “down time” while a territory or position remains vacant.
  • A counter offer allows the company time to find a replacement.
  • Company morale suffers with turnover.
  • Managers are often evaluated on their ability to retain staff.
  • The company does not want to lose the candidate’s contacts, or customers or sales or knowledge.