You’ve found the best candidate to suit your requirements at a time when vacancies are high and the war for talent continues – but what do you do when challenged with the prospect of a counter offer?
Counter offers are a common challenge, particularly in such a competitive jobs market, which means that if you find the ideal candidate you need to move quickly and decisively.
Particularly in the digital market where the demand for skill is often higher than the number of active candidates, you can expect to face the challenge of counter offers when approaching passive candidates.
If the promotion or pay rise that the candidate has been seeking materialises from their current employer, it might already be too late to change their mind.
How can you prevent counter offers derailing your chance to secure top talent?
Consider your Employer Value Proposition (EVP)
Preventing a counter offer is all about salary, right?
Not necessarily.
The good news is that up to 57% of workers today believe it’s easier to find a new job with a different employer than with their current organisation.
This isn’t solely down to tangible benefits such as salary, but instead, the benefits an employee can receive for the skills and experience they bring to their role, such as workplace culture, career growth opportunities, diversity and inclusion commitments and health and wellbeing policies.
Here are some of the EVPs that employees value, according to workers and HR directors in a study published in Harvard Business Review:
- 88% of workers say that when looking for a new position, they will look for one that offers complete flexibility in their hours and location
- 76% of workers believe employees will be likelier to prioritise lifestyle (family and work interests) over proximity to work, making them likelier to pursue jobs in locations where they can focus on both, even if this means taking a pay cut
- 86% of employees and 66% of HR directors say that a diverse workforce will become even more essential as roles, skills and company requirements change over time
- 88% of workers prioritise organisations with the latest collaborative technology in place when searching for a new position
Though this research is aimed towards active candidates, passive candidates likely have similar values in mind when considering potential offers.
If anything, strong EVPs are even more essential when approaching passive candidates, as they can require greater motivation to leave their current job role, and also the motivation to not accept a counter offer.
Understand a candidate’s motivations to make a good impression
It can become extremely difficult to persuade a candidate to move on from their role without knowing what it is that motivates them.
Attracting passive candidates often rests on an ability to discern what it is they are unhappy with in their current role, which requires an understanding of what makes your company different.
Remember that if salary is the only potential benefit you can offer a passive candidate, then a counter offer for more money is going to derail your ability to hire the candidate immediately, so keep in mind the value that your company can offer outside of money.
Most importantly, you should act decisively, not hastily – if the candidate is right, offer quickly.
Though you might be tempted to make an offer during an interview, this may give the impression that it isn’t a considered decision, which is why offering within 24 hours is best in situations where you think the candidate is right.
Keep in mind that nothing gives a negative impression as quickly as a lowball salary offer. This is your chance to show commitment to the candidate, and a low offer is not the way to accomplish this (if using a talent partner, always use that talent partner to put the offer forward).
Make your company culture clear
Many of the issues that employees have in their job roles can come down to company culture.
Issues around inflexibility, poor leadership, lack of career progression, and a lack of emphasis on Corporate Social Responsibility (CSR) can all contribute to a poor company culture.
A candidate is researching and evaluating your company as much as your company is researching and evaluating them, so emphasising a strong employer brand is essential.
Online reputation is a great place to start as this will usually be the first stop in candidate research.
Team pictures, examples of charity work, pictures of the office environment, social media presence and online reviews can all affect the perception a candidate has, so make sure it’s a good one!
Good communication
Strong communication is the backbone to the candidate experience.
If a candidate is left in the dark about their status in the application process, or what the next steps are, they are far less likely to consider the job role.
A clear onboarding process should be signposted, including what to expect and when, and offer letters and contracts.
Without clearly and regularly updating a candidate, including notifying them of the period between a job offer and a potential start date, they are more likely to accept a counter offer.
Regular calls are a great way to make sure candidates are comfortable throughout the resignation process, too, which can go a long way in building trust.
Once the candidate has accepted, the most senior stakeholder on the project or in the business should call the candidate to welcome them onboard, and also take the opportunity to say how great it is that the candidate is joining and discuss the work they’ll be doing and projects they’ll be taking part in.
To summarise
When looking to avoid a counter offer scenario, do the following:
- Cover counter offers and/or reasons for the candidate seeking new opportunities in the interview process to better understand what they’re looking for in your company
- Make EVPs an integral part of your offering and branding so that candidates know what values your company has and the benefits they can receive, from flexible working to career growth opportunities
- Clearly define your company culture and branding through your online presence and throughout the hiring process to ensure that your reputation is appealing to the candidate
- Communicate regularly with the candidate to avoid potential counter offer surprises and to keep them up-to-date on the process, including clear signposting through the onboarding process
- When uncertain, seek the expertise of a recruitment agency that can cover all of the above in the sourcing and hiring process to avoid shortlisting those who are simply looking to leverage a job offer to negotiate a higher salary with their current employer
We can help you to avoid the challenges and disruptions of counter offers when seeking your ideal candidates.
Get in touch today to discuss your recruitment needs with us.