How do you deal with counteroffers and other competing offers for your candidates?

First ask, "On a 1-10 scale how would you compare our offer to everything else you're considering including the possibility of a counteroffer?" Then ask, "What would it take to make our offer number #1 on all of the factors on this candidate decision matrix (https://hiring.tips/Box_Career)?" With this information you can then reposition on all of the non-monetary factors shown to close the deal.

I always handle the topic of counteroffers up front. If they are considering counteroffers from their current firm than I haven't done my job as a recruiter to screen them as a serious candidate. The candidates that accept counteroffers most often are driven by fear, fear of missing out, fear of the unknown if they leave and they are gain comfort in knowing they can stay for more money. So why were they looking in the first place, why would they want to leave and go somewhere else? If I am doing my job as a recruiter, I will know almost for certain if they will or will not take a counteroffer. If I feel that they would be happy at their current company with a little more money. I will advise them to ask their employer for more money.

Handling counteroffers and competing offers for candidates requires a deep understanding of their true priorities. It's important to recognize that candidates may not solely be motivated by financial incentives or job titles. For instance, a candidate might be swayed by the offer of flexible working hours to remain with their current company. To effectively deal with such situations, it's crucial to have candid conversations with candidates to uncover their underlying motivations and the full spectrum of factors influencing their decision-making. This helps you align the opportunities you present with their unique preferences and goals, increasing the likelihood of successfully securing their commitment to your client or organization.

All senior recruiters should anticipate counter-offers occurring, regardless of how strong the relationship with their candidate is. Indeed, this presents itself as an undesirable outcome for any search, but it is a quintessentially human part of the recruitment process, which much be respected at all costs. The concept that accepting a counter-offer is always a blunder needs to be dismissed; there are numerous reasons why it may even be a good idea in some situations. That said, the best way, in my experience, to deal with counter-offers is to show empathy and understanding of the human element of our work. Acknowledging the validity of the situation but communicating the power of change that a new beginning can bring is critical.

By focusing on outcomes, I aim to align the candidate's aspirations with the firm's offerings. If a counter offer arises, I present it promptly and transparently, ensuring there are no hidden agendas. This approach not only builds trust but also facilitates smoother negotiations, leading to satisfactory outcomes for all involved.

Counter Offers - the migraine ?? of any Executive Search Consultant. You are dealing with top class leaders, the vast majority of which are employed - the risk of Counter Offers is forever present. Preparation starts from Day 1. Get into the candidates mind, establish what are their objectives for entering the executive recruitment process. Ask - "If everything goes well, will you stay strong and join the new firm?" Ask them to verbalise their commitment to you as a professional. Then focus on building their respect for you, as a senior leader in your field, so if a counter offer is presented they genuinely seek your guidance, can feed off your insights. Strong Professional communication is at the heart of Candidate Management.

I have come to realizations, that direct and candid communication is the key wile dealing with counter offers. 1000 percent effort should be to build TRUST. Its the essence of any relationship and negotiation. Transparency can go a long way, if not today but candidates remember recruiter who can talks and walk with transparency.

Maintain open communication lines with your candidate throughout the hiring process. This can include discussing how they would respond to a counteroffer from their current employer and reinforcing the strengths of your opportunity

Talking whether verbally, or by text/email is so important, because it provides the opportunity to ask questions. This process opens the path for more dialogue, which provides important information, and this gives all parties the ability to take better actions.

The best thing to do is discuss counter offers, long before they are made, and explain the reasons why accepting a counter offer can have negative consequences down the line. The theory is that if a candidate is worth X, their added value could've and maybe should've been identified beforehand.

One thing I do is ask one genuine question presenting the following scenario... "So you take the money and you stay. Fast forward 2 months, do you feel like the role/business is really going to have changed or will you be in exactly the same position?" Given for most people theres usually a non-monetary reason why they're unhappy in their role, when you ask this question people quickly realise they will likely be in exactly the same position they are in now. I also remind candidates firms will make lots of promises to keep someone. Its always good to ask candidates what guarantees they have had that will things will definitely change/improve

Counteroffers validate a sought-after candidate. I ask them to rate my client’s offer and the counteroffer on a 1-10 scale, then explore what would make my client’s offer a 10/10. This helps my client adjust compensation (if needed) and highlight (and revamp) non-monetary benefits: growth, impact, culture, and progression. I help the candidate compare the offers as objectively as possible. My role is to guide the candidate without pressure while keeping a pipeline of strong backup candidates warm. The KEY is to discuss counteroffers and their risks with potential finalists early on. Accepting a counter can damage the candidate’s reputation, trust, and career. If they are worth $$$, why did their employer only value them after resigning?

Without a doubt an Executive Search Consultant must see Counter Offers as the Final hurdle to any Executive Recruitment Process. Assume it will happen... Prepare for it... Be Happy if it doesn't happen. Preparation for jumping the Counter Offer hurdle starts from the beginning. Dive into the mind of the candidate, what is it that they are seeking. If it is purely financial improvement --- Big Red Flag ??. Chances are Very High that at Offer Stage if presented with a strong Counter Offer they will do as they say, focus on the money ??. Focus on presenting top class leaders that have a strong list of reasons for considering a new role. Ask them "if things go well will you stay strong and join?". Get them to commit as professionals.

Absolutes: 1. Candidates will only do what is in their best interest. Be transparent about supporting that. 2. Top talent always has options. Bank on a counter. W/ that baseline: 1. Understand their 'why', explore it openly. Probe. Outside being grossly underpaid, $$$ is seldom the main driver. 2. Once you've uncovered the motivators, be honest with yourself and the candidate. Is your opportunity a solution? Openly discuss why / why not. Having established trust / shared interest in what's best for everyone *regardless of outcome, real transparency/collaboration can happen. Knowing where you stand is the best you can hope for. Provide value accordingly. Value = Walk through 'mock' counter / turn down scenarios and how to handle them.

When dealing with a senior candidate I always ask them at the start: 1) "Where do you want to be in 5 years time?" 2) "Do you believe in your current firm and role you will achieve that?" Chances are high that the reason they are willing to explore a new role is because the answer to question 2 is No. I then focus on my clients opportunity, highlighting what is on offer, how the role will allow them to step forward in their medium term career planning. Before offer stage I ask: "Do you believe this new firm and role can help you to achieve your 5 year objective?" If they say Yes - I feel much more at ease regarding the risk of any Counter Offer. It also provides me with lots of commentary if a Counter Offer is made.

A counter offer will only be a counter offer if the candidate had the intention of accepting a counter offer. For example, there are stories of footballers that leave one club and go to another for 'less' money. Therefore the fundamental reasons for wanting to move, were crystalized, long before the counter offer was made.

Sell the strengths of your organization and the role. Candidates are often looking for career progression, a better work/life balance, or a culture fit. Ensure these benefits are clearly communicated and resonate with the candidate's career goals and values

One thing to keep foremost in mind when transitioning a candidate into a finalist and eventually an employee: community. We know from experience that the reason people leave jobs (and accept counteroffers) is that they seek the community of engaging, helpful, relatable, and career-focused employees in a new role. Their old job provide some of this, albeit less than satisfactory (hence their seeking new opportunities). The Search Consultant is advised early in the process to identify potential employees at the client to meet with and make “real” the community and potential support system to make the job, the location, the co-workers, management, and opportunities. And do this at multiple times during the process. Let the peers assist

Reinforcing the fit and the opportunity is vital when managing counteroffers and competing offers. Highlighting how a candidate's skills and career goals align with the role and your company's culture can strengthen their inclination towards your offer. Emphasize the long-term career growth, unique opportunities for development, and the supportive environment your company offers, making your proposal more compelling and distinct from other offers they may consider.

Speed is important. Long drawn out interview processes, and/or long drawn out decision making processes and/or notice periods that haven't been negotiated down should be avoided and managed with efficiency and intensity.

I try always to be in touch with both sides during the contracting period. If it is delayed, counteroffers become more likely to be accepted. I had a case when it took a month for my client to formalise the offer, i.e. to send a contract. I was very frustrated about this. The client was extremely busy with many other things and the candidate came to the conclusion that she would never get enough attention from her future boss, so she accepted the counteroffer. I think she made the right decision.

As soon as financial terms are agreed, you must push your client to issue official paperwork ASAP. A candidate can Not sign and resign until they have official documents in hand. Unnecessary delays in issuing paperwork, due to client company internal inefficiencies, just Up the Risk of things going wrong. Delays in paperwork make a candidate think: "Are they serious?" "If they can't even issue paperwork quickly, are they going to be a good and reliable employer?" "Maybe this is why they need to hire, they lose people due to unprofessionalism?" An Executive Recruitment Process must be well managed from start to finish. Don't allow Doubt to enter a candidate's mind at the end! A fast Sign and Resign is critical.

It’s important to always remember that time kills deals. There are so many potential bumps in the road and they are reduced dramatically by swift action. This and stay very close to the candidate. Be across their thought processes, be very clear on the push and pull factors. Whilst surprises will happen, preemptive action on any problem is vital, where possible. Read the process. Finally, be all over the resignation and stay close throughout notice. Easy, I don’t know why we worry….

Once a candidate has accepted your offer, act swiftly to finalize the onboarding process. This helps reduce the window in which counteroffers may be made and keeps the candidate engaged and committed to the transition

Counteroffers may momentarily make employees feel valued and indispensable, but as recruiters, they pose a significant challenge. They often emerge unexpectedly, tempting candidates to stay with minimal raise. It's puzzling that candidates must endure being in a difficult situation of staying in his/her comfort zone or taking a leap fo faith to a new journey before receiving the compensation they rightfully deserve. It's essential to confront the root causes of dissatisfaction and embrace change courageously, even if it means venturing into the unknown. Stop prioritizing short-term fixes over genuine growth and development.

Companies must extend offers that will be competitive with counter offers. Oragaizations are doing a much better job retaining their top performers. Retained search is really the difference maker when it comes down to offer stage. Power of a thrid party should not be underestimated.If you want to hire the best make the investment in hiring an executive search firm.

In my experience the risk of Counter Offers occurring and being accepted is far higher whenever a client company enters Offer Stage with a: "Let's get this done as cheaply as possible" mindset. A drawn out negotiation occurs, finally terms are agreed. All that energy wasted, the candidate left to wonder: "They want to hire me, say I am ideal, but they approach compensation like picking a restaurant offering the best promo deal". It erodes their commitment. If their current company then Instantly & Without Delay matches or exceeds the final offer, it is much easier to say "Yes" and Stay. A company must put themselves in the shoes of the Executive Candidate. Show their commitment by entering with a strong offer from the Get Go.

Counteroffers can still happen after a person starts a new role. That's why a good onboarding is so important. Some companies routinely call about 6 weeks in, when the person, their former employee, has been there long enough to question their choices if things aren't going well. They offer to "just come back to your old role" and add sweeteners such as more comp, pending promotion, etc. An intentional, organized onboarding keeps that person engaged and positive, reducing the chance of a delayed counteroffer taking place.

Understand their motives for wanting to leave. If it is purely about money, then their is a high chance a counter offer will be accepted from their current company. If it is more flexibility, a toxic environment, or managerial disagreements there is a higher chance they will not accept a counter offer.