Counter That! Handling Counteroffers

When it comes to counteroffers from a candidate you have extended an offer to, my advice to employers is to proceed with caution. It is best to plan ahead for the possibility of your offer being countered so that you can respond rather quickly without stalling the process. Time lost at this stage of the game can definitely hurt the impression the potential new hire has of your company.

Candidates arrive at counteroffers a few different ways:

1. Their current boss begs them to stay. This could be because their employer sees them as an irreplaceable member of the team and their leaving would be damaging at this point in time for their company. Or their employer is simply being short-sighted and not considering the best interest of the employee. If a candidate comes to you with a counteroffer in this situation, my advice to you is to decline to negotiate further. The candidate’s employer is creating a short-term solution for a long-term contingency, and the candidate would be wise to understand the eventual outcome of accepting an offer to stay.

2. They have been actively seeking other roles and have competing offers on the table. In this case, the candidate is in a situation where they are weighing options and want to give you the opportunity to meet or exceed the other offer. This typically happens when the candidate truly wants to go to work for you and feels it is important to counter your offer and risk you saying “no” so that they can make that difficult decision. In this scenario, a counteroffer is suggested if you can understand from the candidate what they are looking for in order to say “yes” to your offer and it is within the guidelines you set for a possible counteroffer.

3. They were truly only passively looking for another opportunity and your offer is not what they envisioned to warrant making a move. This scenario often blindsides you as the employer and, if not properly prepared with a plan to counteroffer, can lead to a disappointing end to your recruitment of that hard-sought-after talent. It is best to find out very early in your meetings with passive candidates what motivates them to talk to you. What do they want to move toward in their next career move? And what is it they want to leave behind in their current role and company? If you find out that your company cannot offer the candidate what they are looking for in the overall opportunity you have for them, it is best to eliminate them early so that you are not disappointed in the end. If you determine that what you can offer them fits what they’ve envisioned, ask them about current salary and benefits so that you know what you’re up against as you move along the recruitment process with them.

Keep in mind that many times counteroffers blindside the candidate as well. It can lead to extreme frustration and cause stress for them as well. Having a plan on how to deal with a potential negotiation is key to managing this step of the recruitment process in a way that causes minimal anxiety for both parties.

 
• Be prompt in your response. Give the candidate ample time to consider your offer, but give them a timeline in which you expect a final reply.
• Pick up the phone and talk to the candidate. Now is not the time to send another e-mail.
• Sweeten the offer. It does not necessarily have to be an increase in salary. Think: extra time off, vehicle allowance, remote work days, flex time, extended benefits, etc.
• Put it in writing. Follow up your phone call with a revised offer letter.
• Stick to your plan. Be prepared to walk away if what you had been willing to extend in the counteroffer is not acceptable to the candidate.
• Learn from it. After the decision is final, go back and review your processes to ensure you incorporate anything that you have learned from this experience.

 
Have you checked out Elite Talent, AgCareers.com’s new platform for senior and executive talent? Click here to register and begin your search today!