How do you assess the risk of a candidate accepting a counteroffer from their current employer?

When a candidate puts their resignation notice into their current company, the current company is oftentimes caught off guard. Because of this, they make a counteroffer in order to keep the employee on the team. Sometimes this is done because they truly want to keep the employee, but it is also done in hopes of keeping the employee on the team for a longer period of time so that the company can find a replacement and eliminate the disruption in production that comes with losing an employee. The data on counteroffers is not good, and it is not advised for any candidate to take a counteroffer. They may just find themselves terminated a few short months after.

As an AI language model, I don't have access to individual and specific information about candidates or their employers, but I can provide some general factors that may influence the risk of a candidate accepting a counteroffer:

A counteroffer is a reactive retention strategy from an employer, plain and simple. This can come in the format of a higher salary or other financial incentives, a bump in job title, a change in flexibility to alter their lifestyle, and/or the word that the problem will be fixed. Recruiting, hiring, and onboarding a replacement is costly, so a counteroffer is a desperate attempt to avoid executing a full-blown search for a new employee.

In my experience as an HR professional, counteroffers may also happen because the candidate purposefully wants two companies to compete against each other so that the candidate can receive the best possible compensation, promotion, or other benefits.

As a legal recruiter, the majority of my work is placing attorneys into law firms. In my 34 years of experience, counteroffers rarely happen. When they do, it's usually because the firm is very busy and time is money. Most firms have lockstep compensation so increasing comp isn't feasible unless the associate is promoted to a class year higher than their current class year. For very senior associates, firms could offer partnership, but if someone hasn't been given the sign that they are being groomed for partnership, that is probably unlikely. A retention bonus with a clawback could happen during a hot market, but in a slower market, that is unlikely.

No one can prevent a counteroffer from being extended. What is most important for a prospective employer to focus on is what they can offer the candidate and how their organization dovetails with the candidate's goals. Some people want work-life balance. Some people want a clear path to partnership. Some people want to be in a larger firm. Others want to be in a smaller firm. If the candidate isn't feeling valued in their current job, emphasizing how much the firm or company wants to have the candidate on their team can go a long way towards a job acceptance.

Preventing a counteroffer is a difficult task, but there are a few strategies to try that could mitigate the risk. 1. Gain an understanding of what is motivating the employee to look for a job outside of their company. If it's just money, they are at a higher risk of accepting if $ will remedy their pain point. If it's other factors and their outside offer meets those needs, reiterate this throughout the process. 2. Overcommunicate. Ask if they would entertain staying at their current job if they did receive a counter. After every interview, debrief with the candidate to gain insights on their interests and concerns. Stay curious and engaged in how they evaluate the opportunity.

Understanding the candidates' motivations and goals is a great way to position your offer meaningfully; however, I don't think it is a way to prevent counteroffers. With any candidate, it would be best to present your most substantial offer using the knowledge gained from your relationship with the candidate and believe it is enough for the candidate to accept.

To prevent counteroffers when assessing the risk of a candidate accepting a counteroffer from their current employer, it is important to build strong relationships with candidates, understand their motivations and career aspirations, and offer competitive compensation and benefits packages. Communicating the long-term potential and benefits of joining the organization, and addressing any concerns or doubts the candidate may have, can also help prevent counteroffers. Providing a positive candidate experience, clear expectations, and a smooth onboarding process can make the candidate feel valued and committed to the new opportunity, reducing the likelihood of accepting a counteroffer.

Motivations: The candidate's motivation for exploring new job opportunities is an essential factor. If the candidate is driven by more than just compensation, such as career growth opportunities or work-life balance, a counteroffer may not be enough to keep them in their current role.

I try to be as transparent as possible with my candidates and I emphasize the need for mutual transparency from the outset. My goal is to help my candidates find their dream job. I will ask them if they have any other offers or if they are in discussions with other firms. I trust that they will tell me the truth. If they have other offers through me, I let my clients know where the candidates are in the process. If my candidates don't want me to disclose the particulars, I won't. Managing expectations is a big part of the job seeking process. No one wants to feel blindsided. If there is something that is causing the candidate to drawback, I need to know what that is, and whether or not it can be addressed.

As a professional recruiter, I discuss counteroffers in my first call with prospective candidates. It is assumed that a candidate will receive a counteroffer when they put in their notice, so the first step for me is to first understand the candidate's motivations for leaving, as well as ask them point blank what they will do if a counteroffer is made. If a candidate is seeking change solely for a higher compensation, they are very likely to entertain a counteroffer from their current company. If a candidate is seeking a change for growth or culture, counteroffers usually become irrelevant because it isn't about the money. Understand the candidate's motivations for change.

Counteroffers should be discussed from the beginning of the process. In my market it is highly likely that employers will do everything they can to retain top talent. For me, when understanding why a candidate is looking for a new role, I will always ask if there is anything that would keep them in their current role, and if a counter offer was presented, what would they do? It is important to manage a candidate’s expectations, discuss the likelihood of a counteroffer and how to handle them. In the event that a candidate does still consider a counteroffer, they should feel comfortable enough to discuss this with you.

To detect counteroffers when assessing the risk of a candidate accepting a counteroffer from their current employer, it's important to have open and honest communication with the candidate throughout the hiring process. Ask the candidate about their current employment situation, their motivations for leaving, and any concerns they may have about accepting a new opportunity. It's also helpful to assess the candidate's level of commitment and enthusiasm for the role and the organization. If the candidate seems hesitant or unsure, it may be a sign that they are considering a counteroffer.

Both the recruiter and hiring company naturally possess a biased interest in persuading the candidate to accept the offer. Try offering guidance from an objective perspective to the candidate by presenting data points and information they had provided in the interview process: their goals, values, financial goals, longer term career growth, flexibility, etc. Discuss the pros and cons of each offer that fulfill those points. Encourage the candidate to discuss the offer with a trusted advisor or partner. By maintaining neutrality, you can enable the candidate to make an informed decision while also providing career guidance.

Trust: If the candidate is already seeking new job opportunities, it may indicate a lack of trust in their current employer. A counteroffer may not address these underlying issues and may only serve as a short-term solution.

Why were you not worth the raise/promotion yesterday? Why did you have to put in your notice in order for your current employer to give you a raise/promotion? You have a company that see's your value and worth from the beginning. Once you have put in your notice, trust is broken. If your current employer has to do future layoffs, you will more than likely be the first to go. Does more money truly solve the underlying issues for why you wanted to leave? Remember why you were considering a new job in the first place!

I agree and would add my personal story of a previous employer counteroffering to match my new salary so that I would stay. Honestly, receiving a counteroffer was flattering and clouded my decision to stay or go. After remembering my "why" (why I decided to look for a new position externally; why I took the time to complete a challenging interview process; why I found the courage to submit my resignation), my decision to reject the counteroffer was crystal clear.

In my experience, the few times that a counteroffer was made and the candidate accepted, they ended up leaving their job within a year. Why? Because the reasons that prompted them to look in the first place are still there. They might get glossed over by a retention bonus or other type of short-term inducement, but the foundational issues remain. Fissures will ultimately crack. People have long and selective memories. If you accept a counteroffer, your employer will be happy in the short term. However, if the economy slows down and layoffs are made, your employer will remember that you had planned to quit before. No one is irreplaceable. When times get tough, you may have a target on your back.

Culture: The candidate's fit within their current company culture is another consideration. If the candidate has already expressed dissatisfaction with the culture, a counteroffer may not be enough to address their concerns.

Now is the time to lean into the established relationship you have built with the candidate. Be available to answer their questions and connect them with appropriate stakeholders to energize your offer. Establish a firm deadline and remain professional if they reject your employment offer.

Relationship: The candidate's relationship with their current employer and manager is also a significant factor. If the candidate feels undervalued or underappreciated, a counteroffer may not address their concerns.

Always remember, it's never about you, it's always about what the candidate feels is best for them. Life is a series of relationships. As Maya Angelou said,"People will forget what you said, people will forget what you did, but people will never forget how you made them feel." I hope that when people work with me, they value the work that I've done on their behalf, regardless of the outcome.

Too many times, the employer making the counteroffer has done so too late. If the two parties are both working at the relationship, the employer may not even need to make the counter - they will appreciate that their employer has given them value for money is going to be a good advert for their brand in the new post.