Why Counteroffers Are Costing Companies More Than They Save

Hiring & Firing with Fexingo: Recruitment, Performance, and Workforce Decisions · Jun 4, 2026 · 8m · transcript

When a top employee resigns, many managers rush to offer a counteroffer — more money, a better title, flexibility. But research shows that nearly 80 percent of employees who accept a counteroffer leave within 12 months anyway. In this episode, Lucas and Luna break down why counteroffers fail, using data from a 2025 study by the Institute for Corporate Productivity and a real example from a mid-sized tech firm that lost six-figure sums trying to retain talent with last-minute raises. They explore what a counteroffer actually signals to the team, how it erodes trust, and why companies like…