Executive Search in Japan

Golden Handcuffs: The Hidden Dangers of Counter-Offers in Japan

• Season 1 • Episode 15

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In Japan’s high-stakes executive job market, a counter-offer can feel like validation—more money, a slicker title, a silent nod of approval from leadership. But often, it's the velvet trap that stalls your career trajectory for good.

🎙️In this episode of Executive Search in Japan, we go behind the scenes to unravel the paradox of loyalty, obligation, and timing in Japanese workplaces. Discover why nearly half of executives who accept counter-offers leave within a year—and how cultural forces like wa (harmony) and giri (duty) amplify the fallout.

You'll learn:

  • Why counter-offers may address the salary—but never the deeper motivations driving a move.
  • How accepting one can permanently mark you as disloyal or indecisive in the eyes of leadership.
  • The emotional hurdles stopping people from walking—especially when family ties, mentorship, and unspoken norms tug at your heart.

If you’re navigating a counter-offer—or simply curious about how talent and trust collide in Japan—this episode will give you the cultural context to decide with clarity and integrity.

Tessa Sourceley:

Welcome to the Deep Dive. We're here to sift through the noise and bring you the really essential insights. That's right. Today, we're digging into something pretty complex, actually. It's the world of executive counteroffers. And specifically, we're looking at Japan's talent market, which has its own unique wrinkles.

Chase Stratton:

Absolutely. It's a fascinating area.

Tessa Sourceley:

So the big question is, is accepting a counteroffer a smart move, like proof of your value? Or is it often, well, more of a professional trap?

Chase Stratton:

And that's really our mission for this deep dive, isn't it? We're going to unpack the psychology behind it, the strategies involved, and crucially, the pitfalls. We've got some great sources to draw on. Right. So this isn't just theoretical. We're aiming to give you, our listeners, some really crucial, actionable insights. Whether you're thinking about a career move yourself.

Tessa Sourceley:

Or maybe you're on the other side trying to keep your top people.

Chase Stratton:

Exactly. It's relevant either way in this competitive landscape.

Tessa Sourceley:

Okay, so let's jump in. Our sources are showing something pretty significant. Companies in Japan are using counter offers more and more.

Chase Stratton:

Yeah, it's a definite trend.

Tessa Sourceley:

It's not just happening now and then. It feels like it's becoming a standard tactic almost. What does that actually tell us about how they're thinking about talent retention right now?

Chase Stratton:

Well, it's quite telling, I think. It's just many firms are perhaps valuing talent reactively.

Tessa Sourceley:

Reactively, how

Chase Stratton:

so? Meaning they only really show how much they value someone when that person is about to walk out the door.

Tessa Sourceley:

Oh, okay. Instead of proactively investing in them all along.

Chase Stratton:

Precisely. Instead of consistent development, recognition, fair pay, you know, the things that keep people happy in the first place.

Tessa Sourceley:

So this trend might actually signal a bit of a disconnect in their overall talent strategy.

Chase Stratton:

I think so. It's like the cost of replacing someone only hits home as a retention tool right at the last minute. It suggests talent is scarce.

Tessa Sourceley:

Right.

Chase Stratton:

Definitely. And the immediate fix they reach for is often just a short-term problem. financial one. It doesn't always address the underlying reasons why the person wanted to leave.

Tessa Sourceley:

That makes sense to really get into the nitty gritty of this. Our sources have a well, a really compelling case study. Let's talk about Mr. Tanaka.

Chase Stratton:

Yes, Mr. Tanaka, a good example.

Tessa Sourceley:

He's described as this highly sought after bilingual executive working at a big traditional Japanese company. Right. And after a lot of careful searching, he lands what looks like his dream job, a C. F.O. role at a foreign startup. It's fast growing. That's promising. Exactly. And it wasn't just about more money, though. That was part of it. The big draw was the leadership aspect, a chance to make a real tangible impact.

Chase Stratton:

Which can be harder in more traditional structures sometimes.

Tessa Sourceley:

Precisely. That was a key driver for him wanting to leave his current setup.

Chase Stratton:

OK, so he's got the offer. He's excited.

Tessa Sourceley:

Yeah, he's ready for this new chapter. So he goes in and tenders his resignation. And what happened?

Chase Stratton:

Yes. Panic.

Tessa Sourceley:

Pretty much. His current company described as a traditional Japanese kiretsu, you know, one of those interconnected corporate

Chase Stratton:

groups. Very established structure.

Tessa Sourceley:

They react with considerable alarm. His direct boss, someone he respected, and the head of HR, they pull him into these urgent meetings and they lay it on thick. A really compelling counteroffer.

Chase Stratton:

Okay, what did it include?

Tessa Sourceley:

A big salary bump, for one. A shiny new title, though. Interestingly... A bit vaguely defined.

Chase Stratton:

Ah, vague title. Red flag number one. Maybe.

Tessa Sourceley:

Maybe. And this big promise, you know, you'll be a key player in the company's future. That kind of thing.

Chase Stratton:

Right. The classic appeal. And this is where it gets really tough for someone like Mr. Tanaka, especially in Japan. How so? There's this huge internal conflict. He felt loyalty, sure. But also this really strong cultural obligation. It's called giri.

Tessa Sourceley:

Giri?

Chase Stratton:

Yeah. It's like a sense of duty or social obligation, particularly towards mentors or the group. It weighs heavily.

Tessa Sourceley:

Okay.

Chase Stratton:

And even though his recruiter apparently warned him quite clearly about something called the boomerang effect.

Tessa Sourceley:

We'll come back to that.

Chase Stratton:

That cultural weight, that feeling of Geary, it made him hesitate. He wavered. And, well, ultimately, he accepted the counteroffer.

Tessa Sourceley:

Uh-oh. And the outcome. Was it a smooth sailing from there?

Chase Stratton:

Sadly, no. Not at all. The sources say that just six months later, Mr. Tanaka was deeply unhappy.

Tessa Sourceley:

Really? Yeah. What went wrong? A

Chase Stratton:

new title. Mostly symbolic. His promised new responsibilities, they never really materialized, remained undefined.

Tessa Sourceley:

And those key projects.

Chase Stratton:

They end up going to someone else, a more senior colleague. The trust essentially was broken.

Tessa Sourceley:

With his bosses.

Chase Stratton:

Yeah. They started seeing him as disloyal. You know, someone who had already tried to leave. Yeah. A potential flight risk.

Tessa Sourceley:

And his colleagues.

Chase Stratton:

They were wary too. So he found himself stuck. Basically in the same situation he wanted to escape. Well, worse.

Tessa Sourceley:

How worse?

Chase Stratton:

Because now he had this reputation, right? As someone who rocked the boat, someone who looked out for himself, maybe.

Tessa Sourceley:

Oh, dear. So what happened in the end?

Chase Stratton:

Within a year, he was job hunting again. But this time, it was harder.

Tessa Sourceley:

Why harder?

Chase Stratton:

Because he had that boomerang on his resume, that accepted-then-left situation. It makes hiring managers cautious.

Tessa Sourceley:

Wow. That really illustrates the potential trap, doesn't it?

Chase Stratton:

Perfectly. And... You mentioned the boomerang effect his recruiter warned about.

Tessa Sourceley:

Right. What exactly is that and how common is it?

Chase Stratton:

Well, Mr. Tanaka's story isn't unique, unfortunately. There's actually data on this. A Robert Walters Japan survey from 2021 found that nearly half, 47% of professionals in Japan who accept a counteroffer end up leaving that company within a year anyway.

Tessa Sourceley:

Nearly half within a year. That's huge.

Chase Stratton:

It is. And get this, 27%, so more than a quarter, leave within just six months.

Tessa Sourceley:

Wow. So why? What's the main reason they still leave after accepting more money or a new title?

Chase Stratton:

The primary reason, according to the sources, is simple. The original problems weren't solved.

Tessa Sourceley:

Ah, the things that made them want to leave in the first place.

Chase Stratton:

Exactly. Lack of growth. bad management, company culture, whatever it was, a pay rise, doesn't magically fix those fundamental issues. The counteroffer just delayed the inevitable, really.

Tessa Sourceley:

That statistic is really striking. It makes you wonder about the companies making these offers, too. Are they just, I don't know, throwing money at the problem without fixing the root cause?

Chase Stratton:

Often it seems that way. Or perhaps they can't easily fix the root cause. And maybe there's also a psychological element once that trust is breached, like with Mr. Tanaka. It's hard to go back.

Tessa Sourceley:

You mentioned the cultural obligation, Geary, earlier. Is there more to it culturally in Japan, like broader values that make saying no to a counteroffer, especially from a boss, so difficult, more so than maybe in the West?

Chase Stratton:

Yes, definitely. This brings us to the concept of wa-wa.

Tessa Sourceley:

Wa-wa.

Chase Stratton:

Harmony. It's a hugely important value in traditional Japanese corporate culture. Maintaining group harmony is paramount.

Tessa Sourceley:

And resigning disrupts the harmony.

Chase Stratton:

Exactly. It's often perceived that way. Sometimes even see as a kind of betrayal of the group's collective effort.

Tessa Sourceley:

Okay.

Chase Stratton:

So when a company makes a counteroffer, it's often framed implicitly or explicitly as a way to restore that harmony. Stay with us. Don't disrupt things.

Tessa Sourceley:

So it appeals directly to that ingrained sense of duty and belonging.

Chase Stratton:

Precisely. which makes rejecting the counteroffer feel much more emotionally loaded, much more difficult than in, say, many Western cultures where individual career ambition is often viewed more neutrally or even positively.

Tessa Sourceley:

That's a really interesting cultural layer. And something else our sources touched on was a shift in how departures are handled. Historically, there was more of a ritual.

Chase Stratton:

That's right. There was often a tradition, especially for long-serving executives, of, well... honoring their departure. Think farewell parties, maybe special bonuses,

Tessa Sourceley:

a sort of dignified send off, acknowledging their contribution.

Chase Stratton:

Exactly. It reinforced a sense of mutual respect even as the person moved on. But that seems to be changing.

Tessa Sourceley:

How so? Being replaced by

Chase Stratton:

these more aggressive, financially driven counter offers. The focus shifts from honoring past contributions to just trying to buy back the employee right at the exit door.

Tessa Sourceley:

And what's the impact of that shift, do you think, on how employees feel?

Chase Stratton:

Well, it can make executives feel less like valued members of the team, less like professionals whose history matters. And more like? More like a commodity. An asset whose value is only really acknowledged or paid for when they threaten to leave.

Tessa Sourceley:

Which could actually damage loyalty in the long run, ironically.

Chase Stratton:

Paradoxically, yes. It can erode the very loyalty the company is trying to secure. It highlights the struggle many traditional Japanese companies have adapting to a more fluid global talent market while still operating within these deeply ingrained cultural norms around harmony and avoiding confrontation.

Tessa Sourceley:

Speaking of unique cultural phenomena. I found this fascinating. Our sources mention resignation concierge services in Japan.

Chase Stratton:

Yes, those are quite something.

Tessa Sourceley:

What exactly are they and what does their existence tell us?

Chase Stratton:

They really underscore the societal pressure and frankly, the difficulty many people feel about having that direct resignation conversation.

Tessa Sourceley:

So what do they do?

Chase Stratton:

These are third party companies. You pay them a fee.

Tessa Sourceley:

Right.

Chase Stratton:

And they handle the entire resignation process for you. They'll make the call to your boss, deal with the paperwork, essentially manage the awkwardness and potential emotional fallout.

Tessa Sourceley:

Wow. Someone else quits for you.

Chase Stratton:

Essentially, yes. Now, it's typically used more by sort of lower level or younger employees who find the confrontation particularly daunting.

Tessa Sourceley:

But the fact they even exist.

Chase Stratton:

Exactly. It speaks volumes about how challenging and stressful the act of resigning can be in that cultural context where disrupting the wah, the harmony, is such a big deal. It's a market solution to a very specific cultural pain point.

Tessa Sourceley:

Given all of this, the boomerang effect, the cultural pressures, the vague promises, it really sounds like the executive recruiter's role becomes incredibly important here.

Chase Stratton:

Absolutely crucial. They're not just finding you a job. In this scenario, they act almost as a strategic advisor, even a cultural interpreter sometimes.

Tessa Sourceley:

How so?

Chase Stratton:

They're the ones who can help you see past the immediate allure of the counteroffer, the money, the title, and focus on the bigger picture.

Tessa Sourceley:

The hidden risks like what happened to Mr. Tanaka?

Chase Stratton:

Exactly. The potential damage to trust, the unresolved issues. The recruiter's job is to keep you anchored to your long-term career goals, the reasons you started looking in the first place.

Tessa Sourceley:

They provide that objective viewpoint when things get emotional or confusing.

Chase Stratton:

Precisely. That external perspective is invaluable when you're caught between loyalty, obligation, and a potentially better future elsewhere.

Tessa Sourceley:

Okay, so let's bring this home for our listeners. If you find yourself in this situation facing a counteroffer, what are the practical steps? How should you handle it?

Chase Stratton:

Right. This is key, whether you're the executive, the recruiter involved, or even a manager worried about losing someone.

Tessa Sourceley:

What's the first step?

Chase Stratton:

Before you even respond, take a breath and go back to basics. Why did you start looking for a new job? Make a list if you need to.

Tessa Sourceley:

Reconnect with those original motivations.

Chase Stratton:

Yes. Then look squarely at the counteroffer. Ask yourself honestly. Will this actually fix those underlying issues? Is a bit more money or a fuzzy title going to change the workload, the management style, the lack of opportunity, whatever it was?

Tessa Sourceley:

Be realistic about whether the core problems will remain.

Chase Stratton:

Exactly. And consider the trust factor we talked about. How will your relationship with your current bosses change, knowing you are ready to leave? What about your reputation internally?

Tessa Sourceley:

So, assuming you decide the counteroffer doesn't change the fundamentals, how do you decline gracefully?

Chase Stratton:

Politely. but firmly. Thank them for the offer, acknowledge their confidence in you, but reiterate that you're committed to the new opportunity you've accepted. Keep it professional. Absolutely. Maintain a professional demeanor throughout your notice period. Don't burn bridges. Remember, the goal here is your long-term career satisfaction and growth.

Tessa Sourceley:

Not just a temporary fix or a short-term cash injection.

Chase Stratton:

Precisely. Focus on the long game.

Tessa Sourceley:

Okay, so wrapping this up then. The core message seems clear. That counteroffer, while it might feel validating, even flattering in the moment.

Chase Stratton:

Very tempting, yes. It

Tessa Sourceley:

often just papers over the cracks. It doesn't solve the real problems. And it can lead to some serious career pitfalls down the line.

Chase Stratton:

Especially as we've seen in a market with the unique cultural nuances of Japan. The risks are often higher than they first appear.

Tessa Sourceley:

A potential minefield, indeed.

Chase Stratton:

So maybe a final thought to leave you with, based on everything we've discussed today.

Tessa Sourceley:

Okay.

Chase Stratton:

How might you, personally... Redefine what loyalty means in your career. Is it just about sticking with your current company, perhaps out of obligation or comfort? Or could loyalty also mean being loyal to your own long-term professional growth, your aspirations, your well-being? Even if that means making a change, something to think about beyond just the immediate financials or the cultural expectations.

People on this episode

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Chase Stratton

Co-host
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Tessa Sourceley

Co-host