Introduction
One of the most challenging situations any organization faces is handling the resignation of an employee, especially someone considered valuable, high-performing, or critical to operations. It often triggers a wave of emotions: surprise, disappointment, urgency, and, quite often, fear. In such emotionally charged moments, the immediate instinct is to act swiftly and retain the employee at any cost. Offering a counter-offer-usually a salary hike or additional perks-becomes the default response.
However, through my experience as a senior HR leader, I have learned that counter-offers are not a true solution. They often create bigger, long-term problems. They don’t address the root causes behind the resignation, whether its compensation gaps, lack of growth, poor engagement, or deeper cultural issues. Worse, they set a dangerous precedent, encouraging a cycle where employees use resignations as a negotiation tool.
Over time, counter-offers silently corrode the organizational culture that companies work so hard to build.
