Why Counteroffers are Counter Intuitive

The unemployment rate in Central Florida is at a record low. We’ve tinkered between 2.7% and 3.2% over the past several months. With so many people working and an increasing demand for talent, we all face the undeniable issue of the dreaded counteroffer.

The purpose of this blog is to walk you through how to handle a counteroffer as a candidate, employer, and recruiter.

The Candidate

So you’ve been on the market for two hot weeks and already have multiple job offers. Good for you! Just after you finalize your resignation letter and place it on your boss’ desk, you get called into his office. He is offering you a higher salary to stay in your position. You suddenly feel very valuable. And you should—you just received a $5,000 increase! But why now? Why not a year ago when you asked for one in your performance review? The fact is your boss doesn’t value you anymore now than he did a year ago. He got greedy and doesn’t want to deal with the disruption your departure would cause in the office.

As a candidate, the first thing you should do when starting your job search is analyze the reasons why you want to leave your current position. Is it money, the work, the commute? Once you target the reason(s), negotiate these items with your employer. If they don’t listen to you when you make the original ask, you need to rethink whether your current role is your long-term home.

The Client

The talent struggle is real. As much as you don’t want to counteroffer, you do it anyway. You counteroffer because you know how arduous and pain-staking the process of recruiting and interviewing a new employee can be. And let’s face it, you’re tired of the no-shows, the negotiations, the game. My advice to you is, just don’t do it. Statistics show that 9 out of 10 candidates with counteroffers end up leaving the company within a year of accepting the counteroffer. The employee regrets passing up the other job opportunity—they quickly become disillusioned and disengaged. All the additional time, energy, and expense in the employee is time, energy, and expense down the drain. Time better spent recruiting another star!

The Recruiter

I hear you, Recruiters. Your jobs are hard. Counteroffers are your nemesis. You did all that work to recruit a candidate out of their job and now the candidate has decided to stay. Don’t fret. Some things are just out of your control. I would, however, keep these rules top of mind when recruiting candidates:

1.) Gauge the candidate’s interest in the job. Try to talk them out of leaving their job. Their sincerity and active interest in your opening will be apparent if it’s the role they really want.

2.) Review the counteroffer scenario with them. Do they hesitate? Is money their main motivator? Know who you are negotiating with and use this as leverage when the offer hits the table.

3.) Once you make the candidate an offer, show them your enthusiasm and excitement! In this market, that means going above and beyond. Send the old-school handwritten thank you note, share the news on LinkedIn, and remain in constant communication.

Peace, love, and counteroffers,

 

 

 

 

 

 

Robin Elkin, Vice President of Operations