Overcoming the Counteroffer in Hospitality Hiring

In hospitality, where staffing shortages remain high and competition for skilled talent is fierce, securing a candidate’s acceptance is only half the battle. The real test begins when their current employer steps in with a counteroffer. 

According to recent data, 58% of Australian employers have seen more candidates accept counter offers rather than move on. 

For hospitality employers, this means that every successful hire requires more than just an attractive offer, it demands a strategic “staircase” plan that builds engagement, confidence, and loyalty from the moment an offer is made. 

 

Why the Hospitality Market Is Vulnerable to Counteroffers 

Australia and New Zealand’s hospitality sectors are experiencing ongoing staffing shortages. 

  • 66% of hospitality employers report difficulty filling roles, with chefs, venue managers and service staff in especially high demand. 
  • Candidates often juggle multiple offers at once and employers, facing their own staffing shortages, are quick to counter. 
  • Yet, studies show that only 20% of counteroffers result in long-term retention. 

In short, hospitality leaders can’t just win a candidate they need to keep them. 

 

The Staircase Strategy: From Offer to Onboard to Retain 

A “staircase” approach is a structured plan to guide new hires step-by-step from acceptance to long-term engagement. Here’s how to build one: 

1. At the Offer Stage — Build the Foundation 

  • Move fast: A delayed offer gives competitors time to respond. 
  • Look beyond salary: Emphasise what the role offers beyond pay: flexibility, career progression, leadership pathways, and team culture. 
  • Start the counter-offer conversation early: Ask directly, “What might your current employer do to keep you?” This helps you address concerns before they arise. 
  • Clarify the first 90 days: Present a clear development plan so the candidate sees a future, not just a job. 

Tip: Candidates are more likely to reject counteroffers if they’ve emotionally and professionally connected with their new role. 

 

2. Pre-Start & Day One: Anchor Their Commitment 

  • Send a welcome pack a few days before their start date includes venue info, team introductions, and the week-one plan. 
  • Assign a mentor or “buddy” to help them feel part of the team from day one. 
  • Host a quick welcome meeting with leadership to show genuine excitement and clarify expectations. 

First impressions count and the onboarding experience is often what cements a new hire’s loyalty. 

 

3. The First 30–90 Days Build Engagement and Momentum 

  • Schedule check-ins at weeks 1, 4, and 8 to address early challenges and celebrate small wins. 
  • Recognise achievements, whether it’s a successful service night or positive team feedback. 
  • Share the bigger picture: connect their role to venue goals (guest satisfaction, new initiatives, or leadership growth). 

Aim: A connected, recognised employee is less likely to second-guess their move. 

 

4. Beyond 90 Days: Secure Long-Term Retention 

  • Provide feedback and discuss next-step opportunities, supervisory roles, training, or new projects. 
  • Involve them in team decisions or peer mentoring engagement grows with ownership. 
  • Keep an eye out for early signs of disengagement (frequent comparisons to their previous role, hesitation in commitment). Act early to re-engage. 

When employees see progression and purpose, they’re less tempted by external offers or counter offers. 

 

Practical Tips for Hospitality Employers 

  • Act quickly: The average hospitality role takes just two weeks to fill; delays can cost great talent. 
  • Be transparent about rosters and expectations: Misalignment is a key reason hospitality staff leave within the first three months. 
  • Promote your culture: Today’s candidates care deeply about team environment, flexibility, and leadership style. 
  • Partner strategically: Specialist recruitment agencies understand market pressures and can help structure offer-to-retain strategies. 

 

Final Thoughts 

Counteroffers are part of the modern hiring landscape, but they don’t have to derail your recruitment success. 

By taking a staircase approach, engaging candidates from offer through onboarding and growth, hospitality employers can dramatically improve retention, culture, and performance.