Posted-on August 2019 By Amy Bates
From our research, more and more candidates are being counter offered by their current employers, and It is believed that counter offers often reflect what is happening in the economy. We have been through an economic recession, where a lot of employees took a pay cut or didn’t receive a pay increase over the last few years. This has created a pot of money, for employers to increase their current employees’ salaries, to bring them up to where they should be, discouraging them from leaving.
How to ensure your offer of employment is more attractive than a counter offer:
Don’t delay in making an offer:
If the Candidate is right, make them an offer. We have seen it many times, where a Candidate will lose interest in an opportunity because they have had to wait weeks for feedback and for an offer.
If a Candidate is in process with another company, and you take your time in making an offer, you could lose them to another company.
Making the offer right :
If the Candidate has the right skills, experience and personality to join your company, make sure the offer is right and reflects this. If you know what their salary expectations are, don’t go in and offer something lower. This only wastes your and their time, and in some respect, is an insult to the Candidate. Last year, we got an average of 15% increase on Candidates’ current salaries and you should always aim to make an offer which is at least a 10% increase in salary.
If a Candidate must relocate to join your company, offer a relocation package, or if that is not possible consider offering them a sign on bonus as gesture of good will. This will show the Candidate that you are great employer and value them as an employee.
Is the benefit package you are offering comparable to their current benefits? More info there
Offer more than just an increase in salary
From our research, we asked 2,285 passive candidates, who were NOT actively looking for a new role what their main motivator to change role was, and it was Challenge at a staggering 63%!
You are at an advantage, as the Candidate will have proved themselves within their current company, and in most cases, they won’t see an opportunity for career growth there. So, making sure that the opportunity you are offering, is the challenge and progression they are looking for will reaffirm the reason why joining your company is the right move.
The current employer and the counter offer
Employers will make a counter offer for many reasons including;
It will cost them to find a suitable replacement
It could potentially disturb their recruitment budget
They don’t have the time to recruit
Train and develop a new member of staff and
It could reflect badly on their business, losing a member of staff.
Employees who have been made a counter offer, believe they are being given a counter offer because they are valued within the business, and their skills are irreplaceable, which will make accepting a counter offer more desirable, and at times, a safer option for them.
How we deal with Counter Offers
For our Candidates who are at the offer stage of the recruitment process and are made a counter offer, we ask them to remember why it was they initially considered changing roles, and why they have committed and invested their time to a lengthy recruitment process.
We remind them of what their motivators to change are, as well as the unkept promises made by their current employer. If they feel they are not challenged in their current role, then a pay rise isn’t going to fulfil their job satisfaction, and even those who are motivated because of money, they aren’t likely to see another pay rise or career growth if they stay.
Many counter offers are too good to be true, and around 80% of people who accept a counter offer will end up leaving their role in 6-12 months, as the reasons in which they decided to leave in the first place, still remain.
If you would like to have more in-depth conversation about counter offers, please do not hesitate to contact me on 0161 448 8283, and I would be happy to discuss this with you.