How do I handle an employee asking us to match an external counteroffer?

When an employee brings an external counteroffer, treat it as information about both their value and their reasons for considering leaving, and respond deliberately rather than reflexively. Understand what is genuinely driving the move — pay, growth, role, or management — because matching the salary alone rarely resolves a non-financial cause.

Weigh the decision on consistency and the underlying issue: matching one counteroffer can set a precedent and create equity concerns with peers, and research consistently shows many employees who accept counteroffers still leave within a year if the real reasons remain. If the person is genuinely critical and the issue is addressable, a considered response may be worthwhile; otherwise it is often better to part well and address the systemic factors that prompted the search. Whatever you decide, apply a principle you can defend across the team.