When to Accept a Counteroffer: Pros & Cons for Your Career Move

Accepting a counteroffer may seem tempting, with promises of better compensation or improved work conditions. However, it’s important to consider the long-term implications before making a decision.

Counteroffers are usually viewed as the last-ditch effort by employers to retain people from leaving a company. It often comes in the form of a significant increase in salary offer, employee benefits, or both. According to a 2023 survey, approximately 65% of Indian professionals receive counteroffers when they resign, with the IT and finance sectors seeing the highest rates.

While counteroffers may seem flattering and tempting in the first instance, the push factors that have led to your initial decision to leave still exist, and are very likely to persist in the future.

Through this blog, we will shed light on what a counteroffer is, why companies make it, and what the counteroffer’s pros and cons are that you should know before accepting one.

What is a Counteroffer in India?

A counteroffer is your employer’s attempt to retain you on the job after you’ve resigned, usually involving better pay, perks, or role changes. This usually comes when you have made up your mind to part ways with the organization or had a conversation with the management that it isn’t working for you, and you need to move on.

In most of the counteroffers, salary increases (10- 30 %) and promotions are offered as part of counteroffers. Sometimes, remote work flexibility and role adjustments are also offered as an option in counteroffers.

Why Do Companies Make Counteroffers?

For employers, it is easy to assume that all the employees working with themare happy. They can become complacent and not have conversations with the team about growth, pay rise/ career structure or anything else that might be bothering you, unless you bring it up.

However, business is business, and retaining the workforce is something that employers should actively focus on. The statistics also agree with it; it costs a lot more to hire someone new than it does to retain existing staff on a higher salary. Replacing a senior executive can cost as much as double that annual salary.

Also, the time lost in the handover and getting someone new started is a huge loss of productivity for the business, especially when the employee has a wide impact on the business. Replacing an employee costs about 33% of their annual salary, reflecting lost productivity and training costs.

In addition, the market is extremely candidate-led because of limited pools of qualified talent, which makes it even harder to hire the right candidate with relevant experience and skill set.

Pros of Accepting a Counteroffer

Accepting a counteroffer from your current employer after receiving an external job offer can offer short-term gains but often carries long-term counteroffer risks, especially in competitive fields like finance, HR, or tech in India.

Immediate Financial and Benefit Improvements

Employers often offer salary increases and bonuses in such scenarios. They can also offer better perks like flexible work or improved PTO to retain talent. This addresses compensation gaps quickly without changing jobs.

Familiarity and Stability

You avoid the stress of onboarding in a new environment, avoid going through being the ‘newbie’, keep established colleague relationships, and maintain productivity in a known culture, which is valuable for work-life balance.

Boosted Confidence and Validation

Having your value recognized can improve self-worth, and in rare cases where root causes like leadership are fixed, it leads to real career improvements.

Cons of Accepting a Counteroffer in India(Major Risks)

Accepting a counteroffer comes with its risks and drawbacks that you should always keep in mind before accepting one.

Eroded Trust and Loyalty Concerns

Once you signal intent to leave, employees may view you as a flight risk, leading to exclusion from promotions, key projects, or confidential tasks.

Unresolved Underlying Issues

There was a reason that you started looking for a new job in the first place; if it was compensation, then a raise should do. However, raises often fail to fix the original problems like poor growth opportunities, toxic work culture, workload, etc., causing dissatisfaction to surface again after some time.

High Turnover Risk Post-Acceptance

Statistics reveal that 45-57% of employees leave within 24 months, often burning bridges with the new employer too.

How to Evaluate a Counteroffer in India Objectively

The question, “Should I accept the counteroffer?” may feel tempting as it rids you of the hassle of transitioning to a new place and lets you be in the same place where you are already comfortable and adept at your work. But you should always evaluate all the key points of the counteroffer objectively.

Ask the hard questions

When you are given a counteroffer, ask the hard questions: Why now? What’s changed? Is it a long-term commitment or a panic mode solution given to you? Asking these questions will help you identify a clear intent behind the counteroffer.

Compare total packages

Beyond the raise, there are more factors in play than you think. Think of salary, growth trajectory, work culture, learning opportunities, job security, etc. When you think about more than the compensation, you start seeing the bigger picture. If the reason for looking for other options is more than money, you must think twice before accepting the counteroffer.

Check your Gut and Long-Term Goals

Ask yourself, if you stay now, will it sync with where you want to be in the next 2-3 years? Does everything feel right, or is something going on? Saying yes in these scenarios is easy when you are offered a counteroffer, but looking beyond the offer and seeing the actual picture can give you a better idea of whether to stay or let go.

When You Should Not Accept a Counteroffer

No matter how good it may sound, you should not consider accepting a counteroffer when your reason for leaving is any of the following:

Toxic culture or bad manager

Money can’t fix a soul-sucking work environment. It toxic workplace and politics that were your reason to leave the organization in the first

place; no amount of increase in money as a counteroffer in India can fix it.

No real career growth

If you feel that you have reached a career plateau and you are looking for a new role that offers new learning/ advancement, it doesn’t make sense to stay for a band-aid promotion; you will eventually end up feeling that you are still at the plateau.

You’ve Mentally Moved On

Here is the thing: if you’ve already moved on emotionally, no counteroffer will reignite your passion. So it makes sense to continue with your final decision and bid adieu to your current employer.

Pro tip: If you know someone who’s been in your shoes, a mentor, former colleague, or career coach, ask for their advice, and they may see the blind spots that you aren’t seeing.

When Accepting Makes Sense

Not all counteroffers are bad, some may end up genuinely good for your career. Here is when it makes sense to accept a counteroffer.

Genuine Improvements in Role/ Responsibilities

When a counteroffer includes documented promotions, new projects, or leadership opportunities that you’ve wanted. It makes sense to accept the offer when you are getting what you wanted.

Financial Necessity & Market Realities

Sometimes life circumstances (family, loans, economy) make staying the pragmatic choice. If you are not sure whether you will get the same stability in the next organization, then stay with the current employer for obvious reasons.

You Tested the Market, and Your Company Matched it Fairly

While exploring offers is worth checking to know the industry trends and expectations, often, it also acts as a tool to recalibrate your worth and allow your employer to respond appropriately. You weren’t desperate to leave; you were testing your market value, and it helped you get the right worth for your efforts.

Conclusion

When you get a counteroffer, it is not necessarily a good or bad thing. The truth is, counteroffers are flattering but risky; most people who accept them tend to leave the company anyway. The right choice depends on their unique situation, values, and long-term goals. If the offer solves real problems and aligns with your career vision, it might be worth it. But if it’s just a salary bump to paper over deeper issues, you’re probably better off moving on.

Remember: The best career moves aren’t reactive; they are international. Consider all the points before making any final decision. Whatever you decide, own it. Your career is a marathon, not a sprint.

FAQs

Is accepting a counteroffer bad for my career?

Not always, but it comes with risks. Research shows that 57% of people who accept counteroffers leave within 24 months. The key issue is whether the counteroffer addresses the root reasons you wanted to leave. If it’s just a salary bump but the culture, growth, or work-life balance issues remain, you’re likely delaying the inevitable.

Do most people stay after accepting a counteroffer?

No. Multiple studies, including findings from Harvard Business Review indicate that the majority of employees (60%) who accept counteroffers end up leaving within a year. The original problems that prompted the job search often resurface.

Will accepting a counteroffer affect promotions?

It can. Once you’ve signaled you’re willing to leave, some managers may question your loyalty. You might be overlooked for high-visibility projects or promotions because leadership sees you as a retention risk. However, if your company genuinely values you and follows through on promises, it could actually strengthen your position.

Should I negotiate after receiving a counteroffer?

Absolutely. If you’re seriously considering staying, negotiate the full package—not just salary. Ask for documented commitments on promotions, role changes, project assignments, and timelines. Get everything in writing. If they’re unwilling to formalize promises, that’s a red flag.

What if I already accepted the new job offer?

Ethically and professionally, you should honor your commitment. Backing out after accepting damages your reputation with the new employer and within your industry network—especially in India’s tight-knit professional circles. If you’re having second thoughts, have an honest conversation with the new employer quickly, but be prepared for consequences. Most career experts advise moving forward with the new role.