Counter Offers: How Startups Can Win Against Big Tech
Your candidate just got a counter offer from Google. Here's how to respond and still close the deal.
Roles Team
Talent Advisors · January 1, 2025
# Counter Offers: How Startups Can Win Against Big Tech
You've found the perfect candidate. They're excited about your startup. Then Google counters with a $100K raise. What do you do?
Understanding Counter Offers
### Why Companies Counter - Cheaper than replacing the employee - Panic response to resignation - Genuine desire to retain talent
### Why Candidates Consider Them - Financial security - Familiarity and comfort - Fear of startup risk - Ego boost from being wanted
How to Respond
### Don't Panic A counter offer doesn't mean you've lost. It means the candidate is valuable—which you already knew.
### Reframe the Conversation The candidate was looking for a reason. Help them remember what that was: - "What made you start looking in the first place?" - "How does this counter address those concerns?" - "Where do you want to be in 3-5 years?"
### Compete on Your Strengths You can't match Big Tech cash. Compete on: - **Ownership**: Real equity upside, not RSU crumbs - **Impact**: Direct influence on company direction - **Growth**: Learning and career acceleration - **Mission**: Meaningful work they care about
### Address Risk Honestly Acknowledge the risk differential: - "Yes, we're riskier than Google. Here's why the risk is worth it..." - "Here's our runway, our metrics, our path to next round..." - "Here's what happens to your equity if we succeed..."
When to Increase Your Offer
### Do Increase If - The candidate is clearly top-tier - The counter reveals you were genuinely below market - There's room in your budget - Equity adjustment makes sense
### Don't Increase If - You're already at max budget - The candidate seems primarily motivated by money - It would create internal equity issues
Prevention Is Better Than Cure
### During the Process - Understand their compensation expectations early - Discuss counter offer likelihood upfront - Build genuine relationship and excitement - Move quickly to reduce counter offer window
### Set Expectations "If you receive a counter offer, I'd love to discuss it before you make a decision. Can you commit to that?"
The Bottom Line
Counter offers are part of the game. Stay calm, compete on your strengths, and help candidates remember why they wanted to leave in the first place. Sometimes you'll lose—but often you won't.