For the Denver Business Journal –By Stephanie Klein
When you’ve decided to look for a new job, and have worked diligently to secure an offer, having that offer in hand can lead you to believe your search is over. In reality, you’re not done yet. After receiving an offer, it is not uncommon to receive a counter offer from your current employer. Among HR and recruitment experts, conventional wisdom is that accepting a counter offer is career suicide, period. While most recruiters typically support this notion, many report experiencing an above-average incidence of it happening in the last several quarters. Why is there an increase? Is it still a bad idea to accept a counter offer? Let’s look at the factors contributing to this trend and how both candidates and employers can address it.
To start, let’s look at why an individual may be in a position to accept a counter offer. Many seek out new positions because of frustrations at their current job. And yet, some pursue something new without ever bringing up those frustrations to their supervisor. Some employees do not have ongoing and direct discussions with their manager to know where things truly stand. If an employee does not fully communicate his or her concerns and frustrations, how could he or she know if those issues could potentially be resolved? A frustrated employee may be surprised to learn their challenges and frustrations may be easily solved. Bringing up concerns should be the first step. However, perhaps this employee has absolutely determined the issues and challenges they face can’t or won’t be changed. It’s no exaggeration to say that in this struggling job market, some leaders have gotten lazy, and have forgone employee appreciation for the misguided belief that a paycheck should be enough. In that case, it’s time to look for a new job.
Let’s say that as a job seeker, you’ve been offered another position. How might you respond if your current company counter offered with more money, more flexibility, and more interesting projects? You’d be wise to think twice about your answer. In some cases, counter offers can truly be a wonderful opportunity. Unfortunately, they usually aren’t. Ask yourself, why didn’t your employer offer these incentives before? Why did it take the threat of quitting for leadership to take notice and make a change? Oftentimes, a nervous employer realizes just how much money it will cost to replace you. One must remember, though, that an employer will never forget your desire to leave and the lengths they went to keep him or her. Trust is hard to gain and easy to lose in such situations. Even if the situation at your current employer changes, those changes will likely be temporary. If you have truly communicated your concerns and got little response, your situation will likely remain stagnant despite leveraging more money or responsibility.
For employers who have lost a potential candidate through a counter offer from their current employer, think about where you may have improved your interviewing and recruitment process for this candidate. In all likelihood, you failed to identify what the candidate truly wanted and needed. Was your process detailed and comprehensive? If the entire ordeal was a one-step interview, don’t be surprised if you run into many accepted counter offers. If you low-balled the candidate on money or time off, or didn’t spend enough time explaining how this opportunity would serve both the organization and the candidate, you missed a key selling point. Motivations must be uncovered early and consistently addressed throughout the interview process.
Consider any relationships you have with a valued recruiter. They may be able to give you more insight into market conditions, pay ranges, benefits and the overall fairness of the offer. Don’t be fooled by the glut of applications you receive – finding top-notch talent is still a challenge in this market. By refining your process and ensuring your offer is desirable, you’ll encounter fewer issues with surprise counter offers.
Finally, in some cases, the candidate may have gone through a detailed interview process and their motivations were clearly identified and addressed… but they are still unsure, waffling between your offer and their current employer’s counter offer. In this case, it’s time to listen to the candidate. Why are they stalling – are they scared of change? Can you make any attractive changes to your offer? This isn’t counter offering, but rather negotiation. Once you’ve done all you can throughout the negotiation process, two days is a reasonable time to wait for a response – a week is not. At that point, don’t be afraid to walk away. Fear of losing a good candidate is not a good place to negotiate from, and if your
hiring process is strong and detailed, you will be able to find another good candidate in time.
The Colorado hiring market is picking up, albeit slowly. Applicants, be diligent, honest and communicate your needs and motivations clearly if you’re seeking new employment. Employers, remember that a comprehensive interview process will go far in preventing unwanted surprises for both the candidate
and you.
Stephanie Klein is President and CEO of Experience Factor, a Denver staffing and placement firm, and
chair of the Denver Workforce Investment Board. Contact her at 303-300-6976.