How to Deal with the Dreaded Counteroffer

Previously on The Water Cooler, we explored ways to ensure that you come out on the winning end when making an offer to a candidate. But what happens when your top candidate receives a counteroffer from his or her current employer?

Counteroffers should be expected for exceptional candidates; as the market for top talent continues to tighten, companies are more willing to provide more incentives in order to retain their star employees.

The best defense against a counteroffer, though, is a solid offense. Today we take a look at the ways you can mitigate the risk of a candidate’s counteroffer acceptance. We’ll highlight a few signs that candidates aren’t in the process for the right reasons, provide tips to help them give notice and much more to allow you to put up the best offense possible and lessen the likelihood of an accepted counteroffer.

The Interview Stage: Be the company they can’t “break up” with.

Building a strong relationship between the candidate and your company is the first place to start if you want to avoid a counteroffer down the road.

Candidates sometimes accept counteroffers because it’s more difficult to “break up” with their current employer than say yes to a new one. By cultivating a relationship between candidates and your organization early, you begin to sway the relationship meter so that accepting a counteroffer means they will have to “break up” with you, too.

Candidate Counteroffer Executive Recruiting

The interview process is a critical time to truly get to know why your opportunity is the right one for your candidate. Structure interview questions to gain a better understanding of what a candidate’s current organization is not able to offer (outside of more compensation). Is your candidate looking for a management opportunity? Is the current organization a far commute? Does your company offer a stronger culture fit?

Asking these and other questions can help you determine what your candidate is interested in. If you know what candidates are looking for, you know the reasons why your opportunity is the right one for them and can reinforce these during the offer stage.

For candidates who need to give a long notice period to current employers, make sure you continue to cultivate the relationship prior to their official start date. Encourage their new team to take them out to lunch, and invite new hires to social activities at the office so they can become ingrained in your company culture early on.

The Offer Stage: Walk them through the process of giving notice.

When extending an offer to your candidate, always make it personal; rather than focusing on compensation, remind candidates about everything that your organization is able to provide that their current employer can’t.

Timing also plays a big role in whether your candidate will accept a counteroffer. Deliver your offer on Friday and set a deadline to accept. Eliminating business days between when you give your offer and when you reconnect with your candidate hinders the current employer’s ability to give a counteroffer. Ultimately, you want to make sure you have the last word, not the current employer, so schedule a time to follow-up with your candidate on Monday and cut down on the risk that you won’t hear back.

Many candidates are not experienced at giving notice, so you should also help them visualize the process by actually walking them through it. Ask what they think will happen when they give notice and if they expect to receive a counteroffer.

Surveys have shown that as many as 90% of professionals who accept a counteroffer end up leaving their employer within 18 months, so candidates may need to ask some hard questions about their current situation. Why is a current employer offering a raise or promotion now? Is the candidate only valuable when he wants to leave the organization for another opportunity?

Working with a search firm like 180one can be key at this stage, as a recruiting firm should be equipped to help candidates evaluate counteroffers and guide them through the tough questions that need to be answered before accepting.

Your candidate accepted a counteroffer. Now what?

Despite your best efforts, your candidate may unfortunately decide to accept a counteroffer. In that case, find out more about the decision to accept. Did the current employer offer more money? Did the counteroffer come with a senior title?

Make sure to be consultative, not defensive; you may ultimately lose the battle, but there is still a chance that you can change the candidate’s mind.

Extending offers on Fridays also helps maintain momentum in the process, as you can keep other candidates in your pipeline warm and potentially move onto your next top candidate if you need to.

While you can never eliminate the probability that a candidate receives or even accepts a counteroffer, you can mitigate the risk by having a great offense.
The interview process is an opportunity to build a relationship with candidates and ensure them that a move is the right next step in their career. In the end, keep a positive attitude. The stats show that candidates will likely leave their employers shortly after accepting a counteroffer anyway. Treat your top candidates well regardless of whether they accepted your offer; you could still come out on the winning end and hire them once they do decide to leave.

Want more insight? Check out our General Education section of The Water Cooler and explore topics ranging from candidate relocation to diversity & inclusion in the workplace and more.

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New Opportunity: Chief Financial Officer

By Effie Zimmerman • October 22, 2025

Chief Financial Officer ABOUT THE COMPANY CRU Data Security Group (CDSG) is a leading innovator and manufacturer of industrial-grade flash storage, secure storage products, and removable secure data solutions. With its OEM partners, CDSG supports security-conscious customers worldwide, including government agencies, military organizations, and corporations of all sizes. The company’s portfolio includes highly secure solid-state drives (SSDs), removable SSDs, disaster-proof storage devices, and forensic investigation tools. These purpose-built solutions are engineered to deliver the highest levels of security, durability, and performance, ensuring mission-critical data is protected whether operating at the edge, in the field, or behind the firewall. In 2025, Seattle-based private equity firm Pike Street Capital made a strategic investment in CDSG to accelerate growth through product innovation and targeted acquisitions. THE ROLE CDSG is seeking an experienced and results-driven Chief Financial Officer (CFO) to lead the financial strategy and execution of their high-growth business. The CFO will play a critical role in enabling both organic and acquisitive growth, optimizing operations, and driving value creation in partnership with the CEO and private equity sponsor. This is a hands-on executive leadership role ideal for a proven financial leader with a track record of operating in dynamic, performance-driven environments. RESPONSIBILITIES Executive & Strategic Leadership Serve as a strategic partner to the CEO and executive team, actively contributing to policy, direction, and long-term planning. Help define and execute the company’s growth strategy in alignment with operational, financial, and market objectives. Drive a high-performance culture through accountability, transparency, and collaboration. Lead by example, setting the tone and culture across the organization. Operate as a player/coach, comfortable building models, developing presentations, and engaging directly in critical business issues. Attract, develop, and retain top-tier financial and operational talent. Lead major business initiatives and projects (e.g., productivity improvement, pricing strategies) with measurable results. Shoulder broad business leadership responsibility, beyond traditional finance functions. Financial Planning & Analysis (FP&A) Own the development and ongoing refinement of annual budgets, monthly forecasts, and long-term financial planning. Track and maintain key performance indicators (KPIs) to measure performance against strategic goals. Conduct hands-on analysis of financial performance, with actionable insights to achieve growth and EBITDA targets. Lead investment analysis and decision support, including customer pricing models and full business case development. Demonstrated expertise in labor cost management and margin improvement strategies. Bring experience across multiple ERP platforms; ERP selection and implementation experience is highly preferred. Accounting & Financial Operations Oversee all accounting and finance functions, ensuring accuracy, integrity, and timeliness of financial information. Prepare and deliver comprehensive financial reporting packages, including monthly P&L, balance sheet, cash flow, and covenant compliance. Ensure all financial statements are prepared in accordance with GAAP and meet internal and external stakeholder requirements. Lead all month-end close activities, including general ledger, balance sheet reconciliations, and overhead allocation. Enhance and scale accounting processes, systems, and internal controls to support company growth. Coordinate the annual audit process, ensuring unqualified audit results. Lead the preparation and management of company-wide budgets, including revenue and capital expenditure planning. Treasury & Working Capital Management Lead cash flow forecasting, management, and decision-making around weekly cash disbursements. Improve the full cash cycle, credit policy, collections, inventory, and payables management. Manage lender relationships and covenant compliance. Use forward-looking cash flow analysis to guide capital structure decisions and working capital strategy. M&A & Private Equity Engagement Collaborate with the leadership team, private equity sponsors on M&A activities. Experience or understanding of value creation planning, reporting, and board-level communication. EDUCATION, EXPERIENCE & SKILLS REQUIRED Bachelor’s degree in finance, accounting, business administration, or a related discipline; CPA and MBA strongly preferred. Extensive experience in senior financial leadership roles, ideally within a private equity-backed or high-growth environment. Deep understanding of financial and operational disciplines, including P&L ownership, balance sheet management, cash flow optimization, and capital allocation. Demonstrated experience in corporate governance, risk management, and regulatory compliance. Proven ability to lead complex negotiations related to financing, vendor agreements, M&A, and commercial terms. Expertise in budgeting, forecasting, financial modeling, and working capital management; prior public accounting experience is a plus. Strong business acumen with the ability to quickly assess new challenges and make sound, data-driven decisions in a dynamic environment. Natural leadership presence with the ability to build trust and credibility across all levels of an organization and with external stakeholders. Resilient under pressure with a disciplined approach to prioritization, execution, and delegation. Exceptional communication skills—both written and verbal—with the ability to clearly articulate financial concepts to non-financial stakeholders. Committed to service excellence, with strong interpersonal skills and a collaborative leadership style. High attention to detail and precision, balanced with the ability to think strategically and see the broader business context. Interested in Learning More? 180one has been retained by CDSG to manage this search. If interested in learning more about the opportunity, please contact Nicole Brady at 180one at: 503.699.0184 / nicole@180one.com .

Rethinking the Org Chart: Why Successful Companies Avoid Overloading Managers

By Greg Togni • October 3, 2025

In today’s business climate, reorganizations have become the norm rather than the exception. Companies shift structure to respond to market changes, streamline costs, adopt new technologies, or realign with strategy. But while the headlines focus on job cuts or new leadership, one critical factor often overlooked in the success or failure of a reorganization is managerial span of control : the number of direct reports assigned to each manager. When companies get this wrong, they risk derailing even the best-planned structural change. When they get it right, the results include faster decision-making, improved employee engagement, and better execution of strategic goals. So how do the most successful companies handle this delicate balance during a reorg? The Pitfalls of Overloading Managers The pressure to do more with less can tempt organizations to increase the number of employees reporting directly to each manager. After all, fewer managers mean lower salary overhead, less bureaucracy, and theoretically, a leaner, faster organization. But research consistently shows that increasing a manager’s span of control beyond a certain point leads to declining effectiveness , both for the manager and their team. According to a comprehensive study by Bain & Company, companies with top-quartile performance in productivity and employee engagement tend to cap manager spans at no more than 7 to 10 direct reports , depending on the complexity of the work and the level of autonomy of the team. Beyond this range, several problems begin to surface: Decreased coaching and development time: With too many direct reports, managers struggle to provide regular feedback or support individual growth. Slower decision-making: Managers become bottlenecks as more team members wait for approvals or guidance. Increased burnout: Overloaded managers report higher levels of stress, disengagement, and turnover. Reduced innovation: Less time for strategic thinking means less opportunity to solve problems creatively or improve team performance. Harvard Business Review echoes this concern, noting that “as spans widen, the average quality of management and leadership drops,” especially in knowledge-driven or high-complexity work environments. Span of Control: One Size Doesn’t Fit All So what’s the right number? The answer depends on context , and smart companies know that not all roles, teams, or business units require the same structure. Key variables include: Task complexity: Teams doing routine, repeatable work (like call centers or transactional processing) can operate effectively with spans as wide as 15-20 direct reports. In contrast, research and development teams often require narrower spans due to higher collaboration and oversight needs. Employee experience: Highly experienced, autonomous employees require less hands-on supervision, allowing for broader spans. Manager capability: Not all managers are equally equipped to handle large teams. Leadership training, experience, and support systems (like team leads or AI tools) can influence optimal span. Organizational culture: Companies with strong cultures of self-management and clear accountability structures may tolerate wider spans without performance drops. A 2023 McKinsey report emphasizes this variability, stating, “Leading companies tailor spans of control by role and level, not by arbitrary benchmarks.” Case in Point: Reorg Success Stories Let’s look at a few organizations that have successfully navigated reorgs by paying close attention to managerial spans: 1. Microsoft During Satya Nadella’s early tenure as CEO, Microsoft underwent a major organizational overhaul to break down silos and improve collaboration. A key part of the strategy was flattening the org , but not indiscriminately. Nadella emphasized “clarity of purpose” and invested heavily in leadership development to ensure managers were ready to handle broader spans only where appropriate. The result? Productivity rose, engagement improved, and innovation accelerated across product teams. 2. Procter & Gamble (P&G) P&G restructured in the early 2010s to reduce costs and improve agility. Rather than simply cutting layers, the company also reassessed manager-to-employee ratios by function. In areas like finance, where standard processes prevail, spans increased. In innovation and marketing roles, they were kept tight to preserve creativity and oversight. The tailored approach helped P&G maintain performance through a major shift. 3. Spotify Famous for its “squad” model, Spotify empowers small autonomous teams with clear leadership support. Managers, often called Chapter Leads, have limited spans to ensure close mentorship and skill development within specific technical domains. This model has supported Spotify’s growth while preserving agility and innovation. Practical Guidance for Leaders Planning a Reorg If your company is considering, or currently navigating, a reorganization, here are five evidence-based principles to keep in mind: 1. Start with the work, not the structure Begin by analyzing the actual tasks teams are responsible for. How complex is the work? How interdependent are the roles? What level of oversight is needed? Design the structure around the needs of the work, not arbitrary span targets. 2. Avoid flattening without a function Flattening layers can reduce costs, but it can also create chaos if not executed thoughtfully. Ensure that wider spans are matched with the right capabilities, tools, and cultural support. 3. Invest in manager readiness If you do decide to widen spans, ensure your managers are trained in time management, delegation, coaching, and the use of technology. Even experienced managers can falter without support. 4. Use data to monitor and adjust Keep track of KPIs like employee engagement, turnover, decision speed, and manager satisfaction post-reorg. These can provide early warning signs if spans are too wide or teams are struggling. 5. Communicate clearly and consistently Structural changes can breed uncertainty. Communicate not just what is changing, but why, and how it will improve the experience for both managers and their teams. Structure Should Enable Strategy A reorganization is not just a reshuffling of boxes on an org chart, it’s an opportunity to realign your workforce with your business goals. But even the most visionary strategy will falter if leaders are overwhelmed, disengaged, or unsupported. As the research shows, successful reorgs pay close attention to the human factor. Avoiding overly wide spans of control is not about bureaucracy; it’s about enabling leaders to lead .

New Opportunity: Controller

By Effie Zimmerman • September 24, 2025

Controller ABOUT THE COMPANY Pacific Realty Associates, L.P. (“PacTrust” or the “Firm”) is a fully integrated real estate development and investment firm based in Portland, Oregon. PacTrust has been active in commercial real estate for more than 50 years and is among the largest real estate developers and investment property owners in the Pacific Northwest. The Firm’s real estate portfolio consists of industrial, industrial/flex, office, retail, hospitality, and agricultural properties, with assets in the Pacific Northwest, California, Texas, and Maryland. www.pactrust.com. THE ROLE PacTrust is seeking a Controller to join its corporate headquarters in Portland, Oregon, reporting directly to the Chief Financial Officer. The candidate will be a key member of the team and be responsible for overseeing all financial accounting, debt reporting & compliance, treasury, financial planning & analysis, tax planning, and filing. Additionally, the candidate will collaborate with the Firm’s investment and asset management teams and will be involved with the operations of the business, specifically related to budget and forecast analysis. Qualified candidates must be self-motivated, extremely detail-oriented, organized, and intellectually curious, and must have deep experience working with and managing teams. The Controller must also embrace the Firm’s collaborative and positive culture, be an effective multitasker, and be comfortable working with and supporting various departments and functions. The Firm benefits from a strong, long-standing capital structure with established policies and procedures, but the Controller will be a key member of the Senior Management team tasked with guiding the Firm into the future and growing the business. The Controller will manage a team of accountants, with additional headcount potentially added in the future based on growth and/or reporting needs. RESPONSIBILITIES The Controller will lead the Firm in the following areas: Financial Accounting & Reporting Manage monthly and quarterly financial statement preparation and related reports and projections. Prepare subsidiary financials and review monthly financial packages from joint-venture partners. Review and approve various balance sheet account reconciliations. Oversee fixed asset accounting and maintain all depreciation schedules within the Firm’s Fixed Asset System (Sage). Prepare valuation support schedules and related reports for quarterly fair value accounting purposes. Set up and manage construction jobs in the Firm’s ERP system (Yardi) to ensure appropriate capitalization of development expenses. Treasury: Ensure the Firm’s cash disbursement and cash management controls are appropriately adhered to and adequately documented. Prepare cashflow forecasts and monitor cash receipts to ensure sufficient liquidity at all times. Administer the Firm’s credit card platform (US Bank) and process daily ACH clearings and vendor updates. Administer the Firm’s cash disbursement system (SinglePoint) and setup/approve ACH, book, and wire transfers. Financial Planning & Analysis: Prepare annual budgets for the Firm’s operating company and managing member entities, with monthly forecast updates. Tax Planning & Filing: Coordinate annual tax return preparation with the Firm’s third-party tax advisor (Deloitte) and ensure all filing requirements are satisfied. Prepare tax work papers for the various entities under management. Prepare quarterly estimated taxable income projections and estimated required tax payments. Prepare and process personal property tax filings for various jurisdictions, as required. Process tenant association tax returns, where applicable. Team Leadership & Development: Lead, mentor, and develop a high-performing accounting team. Foster a culture of continuous improvement, promoting efficiency, accuracy, and best practices. Manage performance, establish clear development goals, and provide ongoing coaching for team members. Other: Coordinate annual audit with the Firm’s third-party auditor (Deloitte) and oversee preparation of audit workpapers. Prepare, on an annual basis, lease analysis files for each park with corresponding updates in Yardi as necessary. EDUCATION, EXPERIENCE & SKILLS REQUIRED Education Bachelor’s Degree in Accounting or Finance required CPA strongly preferred. Knowledge & Experience 10+ years of professional experience with prior controller or similar experience required. Experience with commercial real estate and real estate development accounting and reporting is preferred. Working knowledge of real estate valuation frameworks (discounted cash flow, cap rates, etc.) and financial concepts is preferred. Working knowledge of real estate development and asset management functions is preferred. Working knowledge of tax concepts and considerations as they relate to commercial real estate investment and legal entity structuring is preferred. Skills & Abilities Proven track record of building and managing high-functioning teams. Impeccable integrity and honesty. Exceptional analytical, problem-solving, and strategic thinking abilities. Collaborative and effective team player. Proficient with ERP systems and MS Office Suite. Yardi experience a plus. Excellent interpersonal, oral, and written communication skills; strong presentation skills. Initiative-taker with high energy and commitment to work within a dynamic, collaborative and entrepreneurial environment. Strong business writing skills. Ability to build and manage strong relationships internally and externally. Accountable to deadlines with the ability to manage and prioritize work. PacTrust is an equal opportunity employer. All qualified applicants will receive consideration for employment without regard to race, religion, color, national origin, sex, age, genetic information, sexual orientation, gender identity, status as a protected veteran, or status as a qualified individual with a disability, or any other characteristic protected by applicable Federal, State, or Local law. Interested in Learning More? 180one has been retained by PacTrust to manage this search. If interested in learning more about the opportunity, please contact Lisa Heffernan / 971.256.3076/ lisa@180one.com .