Combatting the Counteroffer

If you are an employer who is currently trying to recruit, you may have encountered the problem of your preferred candidate being provided a counteroffer by their current employer – causing them to reject your job offer.

Counter-offering means that current employers promise their employees more attractive employment conditions in order to stay in their jobs. If you are a potential new employer and this happens to you, you will agree that it is frustrating, time-consuming, very annoying, and will make you feel a little exploited.

Here are a few reasons why potential candidates opt for counteroffers:

● They weren't really serious to begin with, and want to see what other job opportunities are around. When they get a new position, they find that they don't yet feel prepared to leave their present employer.

● The candidate is just interviewing with another company to force their current employer to give them a raise.

● The opportunity of attaining higher pay outweighs their interest in new challenges elsewhere.

There isn't necessarily anything wrong with the above three situations. After all, this is a free market, and people have the right to explore it. However, when you go through the interview process, make promises to the candidate, and then get told (often just prior to their start date) that they want to stay where they are, it's not only frustrating but it also wastes your time.

To make matters worse, counteroffers are on the rise in light of the global pandemic, according to Colleen Friel, Director of JMF Associates. She states, "The dreaded 'counter offer' is on the rise since the pandemic gripped the world.

"Over the past 6 months, the job market has been very proactive and busy. However, more and more companies are now counter offering key staff rather than lose them. This is prevalent at the Qualified level more than ever."

She continues, "We recently had a Finance Director from the buoyant construction sector offered a 50% salary rise to keep him, which has never happened in the 30 years I have been in recruitment.

"Whilst we at JMF do our utmost to head off the counteroffer, sometimes these things are out of our control. One suggestion would be to broaden your horizons and consider strong contenders from outside your industry sector, people that can grow in the role and will add value.

"I am a firm believer that money must not be your motivator to move roles. It can factor in, but always a danger if it is the key component. During our interviewing and screening process, we do our utmost to determine reasons for leaving, but, alas, if a current employer pulls all the stops, one or two slip through the net."

Closing Thoughts

It's evident that prioritising clear communication with candidates is key throughout the hiring process. Whilst this approach can't ensure you won't lose one of them to a counteroffer, it may give an earlier indication of their likelihood to end up staying put. Another idea to consider is locating candidates from outside your sector, and then allowing them to grow in the role.

To find out more about our recruitment process, contact us today by calling 0208 663 6699 or by emailing team@jmfassociates.co.uk.