If they're that good, give them a better offer (a promotion, more equity, a raise) first. There are worse things than finding someone ambitious who can back it up. Most companies spend piles of money trying to identify and recruit that kind of talent.
You're suggesting that someone should buy into a counter-offer. This is terrible advice. Accepting a counter-offer is a sure-fire way to get yourself shortlisted for the next round of layoffs. It also shows how wanting your company is that they can't even meet someone's market rate without them threatening to leave.
I've taken a counter-offer, and it worked out very well. So have several other people I know.
It turns out that sometimes, a manager wants to pay an employee more but is blocked by corporate policy or HR. Threatening to leave clears up some of that blockage.
If you are only going to leave because of money, there is little downside to taking a counter-offer. After all, if you were able to get another job now, you should be able to get another one if you happen to be laid off in the future.
I've seen advice like yours many times, but I've never seen any evidence that workers who accept counter-offers are more likely to be laid off or fired.
No. I'm saying we should identify people with potential for advancement. People overqualified for their current position are almost certainly ready for advancement. It's not a counter offer because you've already identified them before they felt a need to shop around.
