COUNTER OFFERS
We as hiring authorities are in a world that is quickly changing everyday. We used to just have the pressure of trying to find the right person, hire them, get them acclimated with their new position. It was enough stress hoping that the Managers, V.P.’s, etc. were satisfied with your choice! Now we are in a market that is saturated with job opportunities and not enough job seekers to fill them!
If you have been in an “HR/Hiring” position, then you are already aware of how much corporate hiring has changed over the last couple of years. The reason for the dramatic change is that the “Baby-Boomers” are now creeping up toward retirement age. This generation is very important in Corporate America! The sheer numbers alone are enough to explain why positions will go unfilled for a period of time.
When you are attempting to hire an individual, many steps are taken to try to ensure that this new hire actually starts the job.
Due to the candidate-driven marketplace, many of the job seekers are receiving multiple offers. Another common problem we are dealing with is the “Counter Offer!”
Many of the top notch professionals are aware that they are valuable to their current employer. However, they are also aware that other corporations are hiring on an ongoing cycle. Therefore, they take advantage of the market, their new company and also their current employer. They are actually just using the new company to get what they want from their current company.
If you suspect that a candidate is strictly looking for a counter offer, you need to confront them very early on in your process. You do not want to deal with this in your offer stage. Signs to look for are: won’t commit to a start date, want a 3+ weeks start date, take a significant amount of time accepting your offer and asking for your offer in writing immediately once you have given the verbal offer.
If you really still want this candidate, you need to ask them how they feel about counter-offers AND IF THEY WOULD ACCEPT ONE IF GIVEN a counter offer. It is a difficult question because you may not like their answer. Again, the earlier it is addressed the better chance you won’t waste a lot of your time!
You might also talk with your candidate regarding what usually takes place once they do accept a counter offer.
The lack of trust becomes a major issue with current employer. They may view you as lacking integrity. They will definitely question your loyalty to them and to their company. Using a counter offer is a “tricky” way to get an increase in salary or any other gains! Statistically, a rough estimate of 60+% of employees that accept a counter offer are no longer employed with that company within 6 months.
Counter offers will be a serious threat to Hiring Authorities for a long time. The quicker you look for them, the quicker you can prevent them from happening to you!
Nancy J. Phillips, CPC
