The Most Frustrating Thing in Recruitment...

Imagine the following situation:

You have spent three months recruiting your perfect candidate, because the market is so tough to find good people this took a lot of effort and time and there were no close second choices.

You sent the offer paperwork, which they signed and returned, and you have waited out their 3-month notice period (meaning the entire process has now taken 6 months!)

It is the week before they are due to start and you receive a communication from them (phone call if you are lucky!), stating that due to a ‘significant’ counteroffer from their current employer, they have decided to remain in their current job.

You start the recruitment process again, and hopefully, you will hire someone within a year!

Securing strong candidates in today's market is increasingly challenging. While the overall employment rate remains stable, vacancies have declined by 130,000 since this time last year, good people will always seem rare to find, and counteroffers can disrupt recruitment and derail important projects.

To help you prevent counteroffers upsetting your recruitment process, we have unpacked the typical counteroffers and shared some ideas to overcome them that we have seen work well over recent years:

Common reasons for counteroffers and why they are accepted.

• Lack of recognition: In today’s busy business, it can be easy to overlook employees. It is one of the reasons people start looking to leave, but also a reason to stay when their threat of leaving puts them in the spotlight and they receive the true recognition and additional value they deserve.
• Job security: Staying put during uncertain economic times means they have little or no risk to moving.
• Familiarity: The comfort and familiarity of an existing work environment can be difficult to abandon.
• Financial incentives: Attractive counteroffers often include significant salary increases or bonuses.
• Career advancement: The current employer may offer promotions, increased responsibilities, or clearer career paths.
• Company culture: A positive and supportive company culture can be a strong factor in a candidate's decision to stay.

Strategies to beat a Counteroffer.

When a potential new hire accepts a counteroffer, it can be a frustrating experience. However, there are several effective ways to increase the chances of securing a candidate and staying ahead of the competition.

• Differentiate from the start: Clearly articulate the unique value proposition of your company, highlighting benefits that cannot be easily replicated.
• Emphasise culture: Showcase your company's culture, values and opportunities for growth and development and most importantly, how this matches the candidate you are seeking to attract. Have them meet similar employees already succeeding in your business.
• Act with urgency: Demonstrate a willingness to make quick decisions on salary and benefits to avoid losing the candidate.
• Offer additional incentives: Consider providing signing bonuses, relocation assistance or other financial perks.
• Personalise the experience: Show genuine interest in the candidate's goals and tailor the offer to their specific needs.
• Address concerns directly: Openly discuss the reasons behind the counteroffer and reiterate the benefits of joining your company.
• Offer a competitive package: Be prepared to negotiate and exceed the counteroffer, recognising that a candidate may be offered up to 25% more than their current earnings to stay in their role.
• Stay in touch: Remain in constant contact with your candidate throughout the recruitment process and their notice period, inviting them to events, sharing information and remembering any key events in their life such as a birthday.

By acting quickly, being flexible and demonstrating a genuine commitment to the candidate's career goals, employers can significantly increase their chances of securing talent and mitigating the impact of counteroffers.

If you want to speak to us about recruiting for your team, call us on 01530 833825, or email [email protected] ?