There will be more counteroffers in 2025 and more employees who choose to accept them. Accepting counteroffers goes against conventional wisdom. In fact, historical data shows that 80% of employees who accept a counteroffer leave within six months.

Yet, this current hiring market may bring employers and current employees to the counteroffer negotiating table. Why?

• It takes more time than ever to refill a position. Time to search, time to interview, and time to train a new employee. Projects are sidelined without the right talent and hiring managers are pulled from their own responsibilities to conduct interviews.
• Companies are searching for the perfect fit. If the experience and cultural fit aren’t an exact match, the hire isn’t happening.
• It is expensive to refill a job. Often, it is more expensive to run the search than to give a current employee a raise.
• There is a real risk of losing a great employee who is up to speed and integrated in the team.
• Employees are feeling uneasy about the hiring market. There is relative security in a position that they already hold.
• Job seekers who are looking to leave for additional compensation aren’t seeing the same level of salary increases that were available a year or two ago. The incentive to leave for a lateral move and a large increase is no longer there.
• Attracting new talent will require advertising higher salaries. Tech unemployment is still very low. While employers are being cautious and picky, they still need the right, in-demand talent.

The hiring market feels volatile right now. People are feeling uncertain about the future. This trepidation impacts both employees potentially looking to change jobs and companies afraid to lose critical employees.

On the staffing side, we are already seeing companies presenting counteroffers and employees accepting – and staying at their job beyond the six-month benchmark.  This is a big shift in the hiring landscape. It impacts the ability to recognize which job seekers are ready, willing, and able to make a job move.

If you’d like to hear more from our team about how counteroffers are impacting the hiring landscape, get in touch with our team.