Counter offer happens after an employee announces his or her resignation. The current company offers that person additional compensation to stay.
This is a very sensitive subject. As a recruiter, when a candidate is getting close to receiving an offer from my client, I always ask how they will handle the counter offer. We have a discussion about how accepting a counter offer is career suicide.
Did you know they're paying you more to stay while they start to search for your replacement? Where was this money before? What are the reasons you considered the new position? Will those reasons go away with slightly more money?
Here's a lovely post on counter offer from Evil HR Lady. Find the comments as instructive as the piece.
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