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Navigating Counteroffers as a Recruiter

by Liz Carey

Woman uses a navigation app to look at a mapOne of the most common challenges a recruiter may face during the hiring process is the candidate receiving a counteroffer from their current employer. Counteroffers can be a tempting option for candidates, as they offer short-term benefits in the form of salary increments, better benefits, or a more senior position in their current company. It can be hard for recruiters to navigate these situations, as counteroffers can derail the hiring process, even after a successful candidate has accepted a job offer from your client.

In this blog post, we will share tips to prepare your candidates and clients to anticipate and handle counteroffers effectively. We will cover why counteroffers happen, how to recognize the signs of a counteroffer, and how to walk your candidates through the process of disengaging from their current employers. We will also share strategies you can use to avoid any disruptions in the hiring process and ensure successful placements.

1. Understanding the Reasons for Counteroffers:
It’s important to understand why counteroffers happen in the first place. Often, employers want to retain their top talent and will do anything to keep them from leaving the company. In some cases, they might not even want the employee to stay long-term but need them in the short-term to finish a critical project or transition their work. Candidates, on the other hand, may feel flattered by the attention and feel valued by their current employers, ultimately making a switch a tough decision.

2. Recognizing Red Flags and Indicators of Counteroffers:
Some signs of counteroffers include the candidate stalling or delaying acceptance, asking for more time to think, or not being upfront about other offers they may have received. Another thing recruiters can do is ask candidates directly whether they have received any counteroffers or anticipate any. Often, this can give an early warning to help prepare for any potential complications.

3. Preparing Candidates for Counteroffer Situations:
One way recruiters can prepare candidates for counteroffer situations is by asking candidates what they would do if a counteroffer came in before an offer was made. It’s important to establish in advance that even if a counteroffer is made, they will ultimately face the same challenges that led them to seek fresh opportunities. The Undercover Recruiter has some tips on how to broach the counteroffer subject with candidates, and NPA members shared some of their advice and questions they ask candidates about a potential counteroffer.

4. Avoiding Disruptions in the Hiring Process:
Sometimes, counteroffers can require the recruiter to negotiate with the candidate’s employer to secure their release from the employee’s contract. It is crucial to have an open and honest conversation with both parties to ensure that hiring processes remain smooth without unnecessary delays.

5. Fostering a Strong Relationship with Clients:
The most reliable way to navigate counteroffer situations effectively is to work in close collaboration with your clients. When preparing candidates for a counteroffer, ensure that they are equipped with information and pain points that could prevent them from taking a counteroffer. This can be achieved by gathering insights about your clients’ company culture, benefits package, and long-term career opportunities, thereby enabling you to better articulate key differentiators that the candidate may not find elsewhere.

Dealing with counteroffers is a common headache for recruiters, but with the right approach and mindset, it can be turned into an opportunity. Recruiters who understand why companies make counteroffers, recognize potential red flags, prepare their candidates, and maintain close communication with their clients can avoid disruptions in the hiring process and ensure that both candidates and clients achieve an optimal outcome, leading to a successful placement.

Tags: counteroffer | Posted in: Recruiting Resources

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