As the Australian economy powers into 2025, skilled professionals are in high demand—especially in finance, tech, and health sectors. With unemployment hovering near historic lows and wage growth hitting a ten-year high, counteroffers have become a staple in salary negotiations. But when your current employer tempts you to stay with a sweetened deal, should you take it?
Why Counteroffers Are on the Rise in 2025
Australia’s labour market is undergoing seismic shifts. According to the latest ABS data, job vacancies remain elevated, and businesses are fighting harder than ever to retain top talent. In this climate, counteroffers—where your existing employer matches or beats a new job offer to keep you—are more common than ever.
- Skills Shortages: Sectors like tech, finance, and healthcare are experiencing acute shortages, fueling bidding wars for experienced staff.
- Wage Growth: The Fair Work Commission’s 2025 minimum wage decision has flowed through to broader wage increases, making job-switching especially attractive.
- Remote Work Flexibility: Employers are offering not just higher pay, but perks like remote work, extra leave, and tailored career paths to persuade staff to stay.
Should You Accept a Counteroffer?
It’s flattering to feel wanted, but accepting a counteroffer can be a career crossroads. According to SEEK’s 2025 Job Market Report, over 60% of professionals who accept a counteroffer leave their employer within 12 months. Why? Because the underlying reasons for considering a move—such as lack of growth, poor culture, or long-term dissatisfaction—often remain unresolved.
- Short-Term Gain vs. Long-Term Fit: A bigger salary or title can be tempting, but think about whether your core reasons for leaving are truly addressed.
- Relationship Impact: Once your employer knows you’ve considered leaving, trust can shift. You may be seen as a ‘flight risk’ for future promotions or opportunities.
- Market Value: A counteroffer may reflect your market worth, but it can also signal that you were undervalued until you threatened to quit.
Real-world example: In early 2025, a Sydney fintech analyst received a 20% pay bump to stay after landing an external offer. Six months later, a lack of project variety and ongoing management issues convinced her to move on—this time, for good.
How to Respond to a Counteroffer: A Step-by-Step Guide
If you receive a counteroffer, step back and weigh your options calmly. Here’s a practical process:
- Clarify Your Priorities: List your top reasons for wanting to leave, and see if the counteroffer genuinely resolves them.
- Assess the Offer: Is the pay rise or benefit significant, or merely symbolic? Is there a written commitment to any non-financial promises?
- Consider the Long View: Will staying help you meet your career and financial goals over the next 2-5 years?
- Negotiate Professionally: If you’re considering the counteroffer, clarify any uncertainties and set clear expectations in writing.
- Make a Decisive Move: Once you decide, communicate respectfully and stick to your choice—whether that’s staying or going.
Remember, the 2025 workplace is more flexible than ever. Many employers are open to creative arrangements, from hybrid work to extra super contributions or study support.
The Bottom Line: Trust Your Instincts, Back Yourself
Counteroffers can be a powerful tool for boosting your salary or negotiating better conditions—but they’re not always the right move for your long-term happiness. Consider the whole picture, not just the pay packet. In a market where skilled Aussies have real bargaining power, backing yourself with a clear-eyed decision will pay off in the long run.
