Updated November 2026
Don't rush to match it. Call the candidate the same day, take them back to the reasons they gave you for leaving, and raise your offer only if money was one of those reasons and the raise fits your pay structure. If their reasons were scope, a manager or growth, a counter-offer rarely fixes them, and the candidate usually knows it once you ask.
The less comfortable truth is that most counter-offers are won or lost weeks before they arrive. The founder who asked, in the very first interview, why this person would leave and what would make them stay has the material to respond well. The founder who didn't ask is negotiating blind.
The counter-offer is decided before it arrives
A counter works by making the candidate's reasons for leaving feel smaller than the risk of moving. If you never surfaced those reasons, you can't remind anyone of them.
An illustrative example runs through this page. Priya, a Seed-stage founder, is hiring her first account executive. Her top candidate, Sam, sells mid-market at a larger software company, and when he resigns his manager offers a raise and a promotion title.
Three questions for the first interview
Write the answers down word for word. You will quote them back later, and a candidate's own words carry more weight than yours.
- "Why would you leave, if nothing else changed?"
- "What would your current company have to do to keep you?" If the answer is "pay me more", expect a counter-offer and plan for it.
- "Have you resigned before, and what happened?" Someone who has taken a counter-offer once often considers it again.
Sam told Priya he wanted to run deals end to end, because his current role split every cycle between an SDR team and a separate closer. Money mattered, but it was third on his list.
Pre-empt it at offer stage
Raise the counter-offer yourself on the offer call: "When you resign, there's a good chance they'll offer you more. Before you decide, would you tell me what they offered and give me a chance to talk it through?"
Then ask when they plan to resign and book a call with them for later that day. Founders rarely think of this call, yet it lands right after their manager has spent an hour making them doubt the move.
Your offer itself matters here too. An offer that sets out equity, scope and a first review date in writing beats a verbal promise. If equity is part of your answer, our stock option calculator helps you show it in numbers they can follow.
What to say when it lands, and when to raise
Reply the same day, by phone first, because silence reads as indifference. Don't criticise their employer or set an ultimatum. Hand the candidate's own reasons back and ask one direct question.
"Thanks for telling me straight away, Sam. I won't start a bidding war, because that's a bad way for either of us to begin.
In our first call you said you wanted to own a full sales cycle and stop working leads someone else qualifies. Does the new offer change that, or only the salary?
If it's the salary, tell me the number that makes this an easy yes and I'll answer by tomorrow. Either way, the offer stands until Friday."
Sam said the role was still what he wanted, but the gap in base salary was hard to explain at home. Priya checked that against simple rules.
- Money was one of the reasons they gave in the first interview.
- Your offer sat low in the range you set, and moving up would not put them above peers.
- You would make the same raise for a new candidate tomorrow.
- Their reasons for leaving were scope, manager or growth, and the counter only adds salary.
- Matching would pay them more than the people they would sit next to.
- They ask you to beat a number without saying what changes their mind.
Her offer sat low in the range she had set, and money was on Sam's list. She closed part of the gap with base and the rest with a written six-month review. Sam accepted the next morning and started on the agreed date. If you are competing with another startup at the same time, see our guide on closing candidates with multiple offers.
Decide your ceiling before the call rather than during it. A founder who raises twice in one conversation has told the candidate there was always more.
Where Funded.club fits
We are a fixed-fee recruiting partner for funded startups and fast-growing teams across North America, Europe and APAC, and since 2019 we've helped 500+ startups from Seed to Series D. One dedicated recruiter runs each search end to end, from screening for reasons to move through to offer.
The fee is fixed and agreed upfront, averaging 6 to 9% of salary against the 20 to 25% typical of contingency recruiters. For an illustrative account executive on a $120,000 base, the fee is $11,500. See our pricing page for the bands.
Frequently asked questions
Should I match a counter-offer from a candidate's current employer?
Only if money was one of the candidate's stated reasons for leaving and the new number fits your pay structure. Otherwise matching salary only delays their next move.
How do I stop a candidate accepting a counter-offer?
Ask in the first interview why they would leave and what would make them stay, raise the counter-offer yourself at offer stage, and agree a call on the day they resign.
Is it a red flag if a candidate tells me about a counter-offer?
No. It gives you a chance to respond. The warning sign is a candidate who goes quiet after resigning, or who asks you to beat a number without saying what would change their decision.
Can a candidate withdraw after signing my contract because of a counter-offer?
In practice, yes, people do. What that means legally depends on the contract and the country or state, so check with an employment lawyer before you do anything beyond talking to the candidate.
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