How do you deal with counteroffers or competing offers from other employers?

I was taught a long time ago that negotiation starts before the actual offer. This mindset has helped me a lot throughout my career. What I mean by negotiation starts before the offer is that you need to understand the key motivators of a candidate from the start. I always make sure to understand and probe around this. Why are they looking to leave in the first place and what will motivate them? I constantly talk about this during the process. Also, I consider that money is one factor amongst others and it's typically not the most important. Statistically, candidates accepting counteroffers from their current employer end up leaving within 6 months following, which proves money is not always the solution... and actually probably not!

This can also help you understand if they would be happy at your organization long-term. For example, if you know that the top of your salary band is the bottom of their expectations or competing offers, it might not be the best fit for either the company or the candidate even if you are able to close the offer.

To effectively deal with counteroffers or competing offers from other employers, here are some actionable steps: Open up communication with the employee to understand their motivations for considering the offer, and what they hope to gain from it. Evaluate the value the employee brings to your company, and determine what level of counteroffer would be necessary to retain them. Consider non-monetary incentives, such as flexible working arrangements, career development opportunities, or company culture improvements, which could be offered to the employee.

Facing Counteroffers? Stay True to Your Goals! When navigating counteroffers or competing offers, remember your career aspirations. Assess each opportunity against your long-term goals. Prioritize alignment with company culture, growth potential, and work-life balance. Opt for authenticity in negotiations, focusing on mutual benefit. Ultimately, choose the path that propels you towards your professional vision. #CareerDecisions #StayFocused

1.Understand Motivations: Discuss with the employee to understand their reasons for considering the counteroffer. 2.Evaluate Value: Assess the employee's value to the company and determine if a counteroffer aligns with long-term goals. 3.Highlight Benefits: Emphasize the unique benefits and growth opportunities your company offers. 4.Stay Competitive: Regularly review and update compensation packages to stay competitive and retain top talent.

If you have to work incredibly hard to close an offer (i.e. renegotiating salary 3-4 times, extending decision deadline more than once, etc.) it could be a sign that it isn't a great mutual fit or that there's something missing. And that's ok! Work with your candidate to figure out their hesitancies and empower them to make the right decision, even if that means turning your offer down. They'll remember you as someone who was a good advocate for the candidate experience and you'll be one step closer to finding the right person who will be happy long-term at your organization.

To deal with counteroffers or competing offers, understand motivations and priorities, communicate transparently and respectfully, and be empathetic and collaborative. This approach can help retain top talent and build a loyal team. It's a must!

As much as you want to achieve your goal, you have to put the candidate's goal first. If you don't, it will not be a successful hire. You have to be willing to tell the candidate it may not be a match. If you truly have the best interest of the hiring team in mind, you will ensure it is a good match for both parties. Ask the candidate if they are willing to share the details of other offers. Help them to to understand the differences. If you understand their motivations, ask them how each offer helps them achieve their goals. If it is clear from your conversation that another offer is competitive, acknowledge that they may have a tough decision or that the other offer may be a better fit.

When a candidate comes to you with a counteroffer or competing offer, resist the urge to lowball them or enter a bidding war. Instead, be upfront about what you can offer, but also why your offer is the best fit. If you encounter a candidate juggling offers from both a large corporation and a smaller, innovative startup you represent; be honest. Tell them, “The corporation may give you stability, but your client will provide you with a chance to grow faster than anywhere else.” This transparency can earn their trust—and their acceptance. Respect their decision-making process. If they choose the other offer, leave the door open for future opportunities. You’d be surprised how many candidates come back around.

In a highly competitive market when the incentives are very high, sometimes you just can't do more monetarily so look at other things you can do. If you've never offered different shifts before, now is the time to take a look at what will work to ultimately get the job done. If you're asking people to come in when they can't even drop their kids off at daycare before the workday starts, the pressure on both sides is not only awful but the relationship is doomed. Be flexible if possible and offer rotating shifts, late starts, etc. Be known for caring, we all live a real life. Get to know what's important to your candidate and support them. Your goodwill will spread like a wild fire.

When faced with counteroffers or competing offers from other employers, providing incentives and support can be effective in retaining top talent. Here are some ways to provide incentives and support: Offer a competitive salary and benefits package that meets or exceeds the employee's expectations. Provide opportunities for professional growth and development, such as training, mentorship, or leadership programs. Offer flexible work arrangements, such as remote work or a flexible schedule, to improve work-life balance.

Seize this chance to showcase your Employer Value Proposition, highlighting the distinct advantages, perks, and social impact efforts that set your company apart. Appeal to the candidate's interests beyond salary and benefits, emphasizing your unique offerings that make your organization more appealing than competitors.

Incentives and support are crucial in today's competitive hiring landscape. A+ players are worth the extra investment because they drive innovation and results. By offering tailored perks and fostering genuine connections, you not only enhance your offer but also create a culture that values talent. This proactive approach can differentiate your company and attract top candidates who align with your vision. Remember, it's not just about filling a role, it's about building a team that will propel your organization forward.

At Typescouts, we've seen that offering personalized perks can be just as effective as a salary increase. Perks like flexible working hours, wellness programs, or access to learning platforms can make your offer more attractive. Suppose you have a candidate choosing between your remote position and a higher-paying, in-office job. Instead of increasing the salary, offer them a fully-funded workspace setup at home and bi-monthly virtual team-building events. They may accept your offer because of the flexibility and alignment with their lifestyle. Tailor incentives to the candidate’s personal needs. For example, if they are parents, offering childcare assistance can sometimes be more valuable than a small salary increase.

If you are fortunate enough to recruit for a team with great culture, this needs to be emphasized at every stage. We spend much more time at work than anywhere else. The long-term implication here is one of health and happiness. When you have those two most important aspects in your daily work this lends to a high standard and quality of work, a happier home life, and prosperity in your health. I often find those companies throwing out the highest compensation and incentives are the ones with high turnover. I encourage you to ask your candidate to look into those things which are of the highest importance.

A successful negotiation requires empathy and understanding of the employee's concerns and priorities, as well as flexibility and open-mindedness from the employer. It's crucial to clearly communicate the terms of the offer and ensure that the employee understands and accepts them. The closing process involves completing all necessary paperwork and finalizing the deal.

In the face of counteroffers, it's crucial to stay proactive and transparent. It's about selling the candidate on the culture fit and long-term growth potential with your company. Remember, it's not always about the money. It's about where they see themselves thriving. Negotiate with confidence and always keep the candidate's career goals in focus.

When the candidate presents a counteroffer, it’s important to respond quickly but thoughtfully. Avoid getting stuck in endless back-and-forth negotiations by offering a fair and competitive package upfront. But if they’re weighing another offer, sometimes a little flexibility can make all the difference. Instead of matching the competitive offer, add a performance-based bonus and fast-track their promotion timeline. Consider offering a "walk-away deal." This is a final, improved offer with the clear message that it’s the best you can do. Candidates appreciate the decisiveness, and it avoids drawn-out negotiations.

When it comes to counteroffers the message is simple, do not take them. Why did it take an employee to go out and find a new job only for their current company to realize their worth? This means that when raises are due again, you could be skipped because you got a raise in the counteroffer. There was a reason why they chose not to award you in the past, and they will do the same in the future.

Remember that beating a counter offer is not always about a more competitive salary. It could be things like a flexible work schedule, different manager, choosing your work projects or scope of work, time off, etc.

Two quick additions: First, if you are working with a diverse individual where strong diversity ERG groups are important, I have offered to connect them with an ambassador for the group to showcase the support in the organization. Second, I let the candidate know I am supportive of whatever they decide because it is not just about the company, but about their career. I listen closely to what is motivating the person, what are the benefits or concerns of each role, and try to guide as a trusted advisor. At the end of the day, it is their decision and only they know in their gut what is right for them, but just letting them talk through it can help.

Building rapport is crucial for effective communication with candidates. Show genuine interest in their career path, experiences, and aspirations to create a comfortable environment. Fostering a friendly and open atmosphere encourages candidates to share their motivations and goals more freely.

Start with understanding that it may not be a match and that the other offers may be better for the candidate, their family and their career. If through negotiations, the candidate ultimately declines your offer, congratulate them, wish them the best, and send them a request to connect on LinkedIn, noting that you never know where, when or how your paths may cross in the future.