What Australia's 2026 Promotion Round Is Really Telling the Market
The mid-year promotion round has landed, and by any measure it was substantial. Across more than forty medium and large Australian firms, over a th...
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Every recruiter has seen the same scene play out. A lawyer resigns after months of quiet deliberation. Within hours, the mood in the partner's office shifts from routine to urgent. By the end of the day there is a counteroffer on the table — more money, a better title, a promise that things will change. The lawyer, flattered and relieved to have avoided an awkward departure, accepts.
On the surface, everyone wins. The firm keeps a valued lawyer. The lawyer gets a pay rise without the disruption of moving. The problem, quietly, goes unsolved.
At Carlyle Kingswood Global, we have watched this cycle repeat for long enough to say with some confidence: a counteroffer very rarely fixes what made someone want to leave in the first place. It usually just delays the departure.
Money is almost never the whole story, even when it is the reason people give. When we debrief candidates who have decided to move, the drivers are remarkably consistent: they feel their progression has stalled, they no longer trust the leadership above them, the work has stopped being interesting, or the culture has quietly curdled. Compensation is often the most comfortable thing to name because it is concrete and impersonal. It is far easier to say "I need more money" than "I no longer believe this firm values me."
A counteroffer answers the stated reason. It does not touch the real one. Six months later, the lawyer is earning more but sitting in the same seat, reporting to the same person, doing the same work that made them pick up the phone in the first place. The raise has been absorbed and the original frustration is back — only now the trust runs in one direction fewer.
The recruitment industry has repeated the statistic for years that the large majority of professionals who accept a counteroffer leave within twelve months anyway. The precise figure is less important than the pattern behind it - acepting a counteroffer treats a symptom, and symptoms recur.
There is a second, less obvious cost. The moment a lawyer resigns, something changes in how the firm sees them — even if the firm keeps them. They have signalled that they were prepared to leave. When the next round of high-stakes work is allocated, or the next promotion decided, that signal has a way of resurfacing. The lawyer who was "retained" is quietly recategorised as a flight risk. That is not disloyalty on the firm's part; it is human nature. But it means the counteroffer often buys retention at the price of the very trust the lawyer was worried about.
For firm leaders, the temptation to counteroffer is understandable. Losing a good lawyer is expensive, disruptive, and unsettling for the team. A counteroffer feels like the fastest, cheapest fix.
But it is worth asking a harder question. If a lawyer had to threaten to leave before the firm would pay them what they are worth or invest in their progression, what does that say about how the firm manages its people the rest of the time? A firm that only revalues its talent under duress is training its best people to resign as a negotiating tactic. Word travels. The next ambitious associate learns that the path to recognition runs through a resignation letter.
The firms that retain well do not rely on counteroffers. They have honest conversations about progression before the lawyer starts looking, they pay competitively without being asked, and they notice disengagement early. Retention is built in the eleven months before the resignation, not in the two hours after it.
If you find yourself weighing a counteroffer, we would gently offer three questions.
First, why did it take a resignation for this offer to appear? If the firm could have paid or promoted you all along, the fact that they did not until you forced their hand is itself an answer.
Second, has anything actually changed, or only the number? A pay rise is not a new manager, a new practice group, or a new trajectory. If the reasons you wanted to leave are structural, money will not touch them.
Third, how will you be seen tomorrow? The relationship after a rescinded resignation is rarely the same as the one before it. Be honest with yourself about whether you are staying for a genuine future or simply avoiding a difficult few weeks.
None of this means every counteroffer should be refused. Occasionally a resignation genuinely surfaces a problem the firm did not know existed and is willing to fix properly — a structural change, a move to a different team, a real shift in responsibility. When the counteroffer addresses the actual reason rather than the stated one, staying can be the right call. But that is the exception, and it is usually obvious when it is happening, because the conversation is about far more than pay.
A resignation is rarely the beginning of a problem. It is the visible end of one that has been building for months. A counteroffer papers over the symptom and leaves the cause intact, which is why so many of the lawyers who accept them are back on the market within the year.
The better approach — for firms and for individuals — is to deal with the underlying question honestly. For firms, that means valuing people before they threaten to walk. For lawyers, it means being clear-eyed about whether staying is a genuine decision or simply the path of least resistance.
At CKG, our job is not to talk people into moves or out of them. It is to help both sides see the situation clearly — because the best decisions, on either side of the table, are the ones made with the real reasons in full view.