Skip to content
← Back to Blog

How to Use Counteroffers to Retain Top Talent

• by EvolvHR Team

Turnover is an inevitable part of running a business, but it doesn’t always have to result in losing top talent. With the right approach, a resignation counteroffer can turn the tide and keep key employees on board. Here’s how to use Paycor’s customizable template to craft effective counteroffers.

Why Counteroffers Matter

According to LiveCareer research, 57% of employees who accept counteroffers stay with their company for up to two years. A well-timed and thoughtful counteroffer can:

  • Retain valuable institutional knowledge.
  • Prevent the costs and disruptions associated with hiring replacements.
  • Signal that the organization values its employees.

Key Elements of a Strong Counteroffer

1. Address the Root Cause

Before crafting a counteroffer, have an honest conversation to understand why the employee decided to leave. Common reasons include:

  • Compensation concerns.
  • Limited career growth opportunities.
  • Work-life balance issues.

2. Tailor the Offer

Personalized counteroffers are more likely to succeed. Examples include:

  • A salary adjustment or bonus.
  • Additional professional development opportunities.
  • Flexible work arrangements or extra time off.

3. Emphasize Confidentiality

Clearly state that the details of the offer should remain confidential to maintain team morale and avoid setting unintended precedents.

Customizing Your Counteroffer Letter

Paycor’s template provides a starting point for crafting resignation counteroffers. Use the bracketed placeholders to insert tailored offers and personalize the message. For example:

  • “We were disheartened to hear of your desire to leave. To retain you, we’d like to offer [specific benefit].”

Best Practices for Retention

While counteroffers can be effective, they should be part of a broader retention strategy. Proactive measures include:

  • Regular check-ins to address employee concerns.
  • Offering competitive salaries and benefits.
  • Creating clear paths for career advancement.

Take Action Today

Don’t wait for a resignation to address employee concerns. Start by using Paycor’s Counteroffer Letter Template to prepare for critical conversations. Remember, retaining top talent is about more than just offers—it’s about fostering a workplace where employees feel valued and supported.

Show your employees they matter. Download Paycor’s Counteroffer Letter Template and start retaining your top talent today.

Ready to Transform Your Human Resources Operations?

Encourage HR leaders and managers to use the template to craft personalized counteroffers and retain critical employees.

Contact EvolvHR today to learn how we can help you implement these strategies and build a stronger, more resilient organization.