The counter-offer isn\u2019t new, but its role has become an increasingly important consideration amid a job market impacted by the pandemic, the Great Resignation and soaring inflation.<\/p>\n
Many companies are making it a priority to attract top talent<\/a> while others are doing everything in their power to retain skilled workers. In today’s current climate, it\u2019s more crucial to recruiters and job seekers than any time in recent history to understand counter-offers and be prepared to address them promptly.<\/p>\n <\/p>\n A counter-offer is a proposal from a job seeker\u2019s current employer that\u2019s intended to rival or surpass the offer received from a prospective employer. The counter-offer has a single goal: Entice the job seeker to remain in their current position.<\/p>\n Counter-offers come in different forms, including but not limited to:<\/p>\n Counter-offers are most often monetary. Financial counter-offers may entail a pay raise, an annual bonus or bonus system, company shares or investment plans.<\/p>\n The promise of more money is a leading cause of job seekers deciding to remain with their current employers. But this financial boost is often a one-time affair, and there are other critical factors to assess before jumping at a salary increase.<\/p>\n When someone works hard at what they do, they want recognition for their commitment and an opportunity to advance within an organization. This makes promotions and pledges of greater responsibility powerful counter-offer tools, even if they\u2019re not accompanied by a raise.<\/p>\n Employers sometimes seek to resolve conflicts between qualified employees and management by offering an altered reporting structure. This type of counter-offer may be extended in addition to a pay increase or future considerations.<\/p>\n Changing jobs can be a burden for job seekers and employers alike. Employers desperate to keep quality personnel, retain institutional knowledge and save on new-hire training may offer assurances of improvements or future considerations such as education opportunities, extended time off or other enticing benefits.<\/p>\n It\u2019s also not unheard of for employers to play off a job-seeking employee\u2019s emotions. A current employer may belittle the potential new employer, or ridicule the job seeker\u2019s role. Employers may further attempt to induce guilt or question the employee\u2019s loyalty.<\/p>\n Despite their reality in today\u2019s job market, counter-offers often take job seekers \u2014 and even some recruiters \u2014 by surprise. Preparation is key to responding to counter-offers pragmatically and unemotionally.<\/p>\n Effective questioning by recruiters during the initial screening process is critical to coping with counter-offers. The answers to the following questions can help both recruiters and job seekers determine the precise reasons a candidate desires to leave a current workplace and whether a counter-offer may change their mind:<\/p>\n Some candidates are actively looking for new roles while others may be dissatisfied but merely testing the waters. Confirming how immediately the job seeker is willing to consider a new position will help determine the next steps.<\/p>\n A candidate may be unhappy with their salary, have a horrible boss, or lack avenues for career advancement. It\u2019s paramount to discuss a candidate\u2019s most compelling reasons for wanting a change and to prioritize what a job seeker wants in a new position.<\/p>\n If an organization does provide counter-offers when employees look elsewhere, the secondary questions to confront are: Why don\u2019t they extend their best offers until their best workers are considering other options? Do they value their most skilled employees every day, or just when those employees look elsewhere? What did a prospect\u2019s most recent review say? Did the review recognize the employee\u2019s performance, or offer any training or development opportunities? Candidates should read reviews as indications of what their employers really think of them.<\/p>\n A candidate doesn\u2019t consider new job opportunities without cause. In the face of a counter-offer, job seekers should remember the compelling reasons why they decided to explore the market and whether the counter-offer truly addresses these issues. Examples of compelling reasons include: disruption, career growth, company growth, purpose, culture, voice, and work-life integration.<\/p>\n Being prepared for counter-offers and having a firm grasp on a candidate\u2019s motivations for seeking a new job makes it less likely a job seeker will stay with their current employer. Sometimes, however, a candidate must reconsider an organization\u2019s strengths as they align with the job seeker\u2019s values.<\/p>\n These values may include:<\/p>\n \u2022 Flexibility for improved work-life balance At this stage, recruiters may want to introduce additional questions about a candidate\u2019s key motivators for seeking a new job:<\/p>\n \u2022 If your employer offered you an additional $10,000 per year, would you accept it and change your mind about your other reasons for leaving \u2022 Do you see yourself in your current position for the next two years? If not, what would need to change for you to stay in that role? What role do you imagine yourself in?<\/p>\n \u2022 How important is your job title to you?<\/p>\n \u2022 When did you last feel valued or recognized by your current employer? What type of recognition is important?<\/p>\n \u2022 Are you happy with your current manager? Do you flourish with a particular management style?<\/p>\n \u2022 How close is your current job to your home, and do you prefer office or remote work?<\/p>\n \u2022 Do you use your educational background, academic credentials or professional certifications in your current position?<\/p>\n \u2022 How do you feel about the workplace culture at your current organization? How would you improve it?<\/p>\n \u2022 Do you have flexibility in your work arrangements, and are there particular areas you rely on?<\/p>\n \u2022 What technologies do you use in your current position, and does your employer provide upskilling or reskilling programs?<\/p>\n \u2022 Where do you see yourself in 6 months?<\/p>\n \u2022 Why weren\u2019t you offered a raise before you gave notice to resign? Is money a temporary band-aid to your real reasons for exploring new opportunities?<\/p>\n \u2022 Salary may be a big reason why an employee leaves a job, but it is rarely the only \u2014 or even most compelling \u2014 reason.<\/p>\n A raise doesn\u2019t solve problems such as work-life imbalance, incompatible management personalities, lack of career advancement or excessive commute times. In fact, counter-offer raises may preclude future salary increases or bonuses.<\/p>\n And compensation shouldn\u2019t trump a candidate\u2019s primary drivers for wanting to leave. More money certainly won\u2019t solve those lingering issues.<\/p>\n Counter-offers are often short-term fixes. In many cases, employees who accept counter-offers are looking for work again within a year, either because they remain unhappy or were released by the employer.<\/p>\n Once a candidate provides notice to leave or tells their current employer they have another offer, the relationship is cracked moving forward. Accepting a counter-offer just provides a fleeting patch.<\/p>\n Procom recently surveyed over 1,000 knowledge workers to discover how and where they prefer to work as offices re-open across North America. <\/p>\n The Voice of Talent Report offers actionable insights into what workers expect in relation to mandatory vaccinations, remote work preferences, The Great Resignation, COVID-19 safety measures and more.<\/p>\n Access your complimentary copy to discover how to attract talent in 2022:<\/p>\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tDownload report\n\t\t\t\t\t<\/a>\n\n\n Counter-Offers in Recruitment: Definition and Types <\/h2>\n
More Money<\/h3>\n
Promotions and Greater Responsibility<\/h3>\n
Modified Reporting Structure<\/h3>\n
Future Considerations<\/h3>\n
Disparaging Remarks about Prospective Employer or Job<\/h3>\n
Preparing for Counter-Offers<\/b><\/h3>\n
Are you actively seeking new opportunities?<\/h3>\n
Why do you want to leave your current employer?<\/h3>\n
Does your current employer extend counter-offers, and if so why have you not received their best offer until now?<\/h3>\n
What steps will you take if a counter-offer is presented?<\/h3>\n
Combating Counter-Offers in Recruitment<\/b><\/h3>\n
\u2022 Career advancement opportunities.
\u2022 Organizational culture.
\u2022 Technology stacks that enhance efficiency and grow an employee\u2019s knowledge base.
\u2022 Project scopes that provide employees with tangible, attainable goals.
\u2022 Training and educational opportunities. <\/p>\n
\u2022 What benefits does your current employer provide, and which are most important to you?<\/p>\nCounter-Offers: More Money, Same Problems<\/b><\/h3>\n
The Voice of Talent: Return to the Office Report<\/b><\/h3>\n