The current counteroffer conundrum in Kiwi businesses
- 95% of employers have extended a counteroffer to employees who received external job offers in the last 12 months
- When the counteroffer was extended, 50% say the employee is still with them, while 37% say the employee left within 12 months and another 8% declined the counteroffer and left
- 43% say counteroffers are a valuable tool to retain talent whilst 30% say they are a short-term fix that rarely solves deeper issues
- In response to turnover, 48% say they prioritise proactive retention strategies while 28% rely on reactive counteroffers
Auckland, 16 June 2026 – Counteroffers have become a widespread retention tactic in today’s competitive hiring market but their effectiveness is under scrutiny.
The 2026 Robert Half Salary Guide reveals 95% of New Zealand employers extended a counteroffer to employees with external job offers in the past year. Yet despite these efforts, more than one in three (37%) of those employees still left within 12 months and 8% declined the counteroffer, raising doubts about whether counteroffers are a long-term solution or just a temporary fix.
Only 1% of employers say they don’t offer counteroffers and 4% haven’t encountered the need to extend one in the last 12 months.
A quick save or a lasting fix?
Counteroffers continue to play a prominent role in retention strategies. When asked how their organisation views counteroffers in today’s competitive job market, employers expressed mixed opinions, highlighting a divide between short-term necessity and long-term effectiveness.
43% say they are a valuable tool to retain top talent in a tight market
30% say they are a short-term fix that rarely solves deeper issues
24% say they are a necessary tactic due to wage competition
2% say they avoid counteroffers
1% are unsure or have no formal stance
How employers are approaching turnover
When asked which approach their organisation prioritises, 48% say they focus on proactive retention strategies such as career development opportunities, salary reviews, and engagement initiatives to reduce the likelihood of resignations before they happen.
Meanwhile, 28% admit to taking a more reactive approach, relying on counteroffers when valued employees hand in their notice. Another 20% say they use a mix of both, depending on the circumstances, highlighting the fluid nature of retention strategies in today’s talent market.
Just 2% of employers say turnover isn’t a major concern for their business, and 2% remain unsure.
“Counteroffers can be effective in the short term, but they are rarely a complete solution,” says Megan Alexander, Managing Director at Robert Half. “Compensation may influence an employee’s decision to stay initially, but long-term retention is usually driven by broader factors, such as career development, workplace culture and overall engagement. Employers should see counteroffers as a short-term measure, not a replacement for a strong, forward-looking retention strategy.
“With competition for skilled talent remaining high, employers are under pressure to improve retention, but quick fixes like counteroffers rarely solve the root cause of employee turnover. Leading organisations are taking a longer-term approach by investing in career pathways, reviewing pay regularly, and maintaining clear communication to strengthen loyalty before employees are tempted to leave.”
RobertHalf_counteroffer_June_NZ.pdf
Notes to editors
About the research
The study is developed by Robert Half and was conducted online in October 2025 by an independent research company of 250 finance, accounting, and IT and technology hiring managers. Respondents are drawn from a sample of SMEs as well as large private, publicly-listed, and public sector organisations across New Zealand. This survey is part of the international workplace survey, a questionnaire about job trends, talent management, and trends in the workplace.
About Robert Half
Robert Half is the global, specialised talent solutions provider that helps employers find their next great hire and jobseekers uncover their next opportunity. Robert Half offers both contract and permanent placement services, and is the parent company of Protiviti, a global consulting firm. Robert Half New Zealand has an office in Auckland and the South Island. More information on roberthalf.com/nz.
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Courtney Fletcher
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