Why this negotiation is different
A counteroffer situation involves negotiating with two employers at once, your current one suddenly offering more to keep you, and the new company that made you an offer in the first place, which means the decision is rarely just about the number. Data on counteroffers consistently shows a significant share of people who accept them end up leaving within a year or two anyway, often because the underlying reasons for job searching (growth ceiling, management issues, culture) weren't actually solved by a pay bump. If you're genuinely torn, it's worth being honest with yourself about whether more money fixes the real reason you started looking, or just delays the same conversation.
A specific script and approach
If you've decided to stay and want to negotiate the counteroffer itself: "I appreciate this offer and I'm considering it seriously. Beyond the salary, I'd like to understand what's changing about [the specific issue that made you look elsewhere, growth path, workload, team], since that matters as much to me as the number." If you've decided to leave despite the counteroffer: "I've decided to accept the other offer. I appreciate you making this counteroffer and I want to leave on good terms." Keep this brief and firm rather than over-explaining, which can invite more pressure to stay.
Common mistakes
Don't use a competing offer purely as leverage to get a raise with no real intention of leaving, if your manager senses this later, even a successful counteroffer negotiation can damage trust. Don't accept a counteroffer solely because the number is bigger without addressing the non-salary reasons you started looking, since those tend to resurface. And don't feel obligated to give your current employer a chance to counter if you've already made your decision, it's not owed, and dragging it out helps no one.
Frequently asked questions
Before your next interview, it helps to have the fundamentals down. Our complete guide to preparing for a job interview covers the basics, and the STAR method is a reliable way to structure almost any answer under pressure.