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[Excerpt] While counter-offers virtually disappeared in the great recession, they have regained popularity in recent years in an attempt to retain employees as the labor market tightens. While the use of counter-offers is widespread, many organizations are failing to use counter-offers effectively. Ineffective and poorly planned counter-offers result in negative consequences and poor results for all parties involved. Following the acceptance of a counter-offer, 55% of employees report greater unhappiness and decreased levels of commitment. Only 16% of employees who accept counter-offers believe their relationship with their employer improved post-offer. In fact, he majority of employees who accept counter-offers turnover within the following 6 to 24 months. Counter-Offers are a short-term fix when firms need a long-term solution.


Suggested Citation
Chen, J. & White, B. (2018). What are best practices relating to counter-offers? Retrieved [insert date] from Cornell University, ILR School site:

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Copyright held by the authors.