Part 1: Managing a counter offer
It's the moment every Hiring Manager dreads. You've gone through your interview process, selected your preferred candidate, put an attractive offer together, made the verbal offer and the candidate is excited. You prepare the contract. Then all of a sudden you get a message - the candidate wants to talk…they've received a counter offer from their employer!
It can be a frustrating experience, but it's also just one possible part of the journey of hiring someone new. The best thing you can do is be prepared so you don't say things you regret, and can position yourself to make your role more attractive.
Managing a counter offer starts before you make an offer
It's important to understand early on whether a counter offer is a likely scenario. I often ask during phone screens "do you expect to receive a counter offer from your current employer?", especially if a candidate has listed off a number of accolades and I can tell they are a valuable staff member. Bringing this up early mentally prepares the candidate and helps you begin to set the scene.
The other key is understanding the candidate's motivations for moving on. I saw a great post on LinkedIn suggesting the simple question "what's missing in your current role?" and I love it. It's similar to the sales technique of spin selling - you uncover the candidate's pain, then spin your role back as the solution.
Remind them of this at offer stage
When you make the offer, prime your candidate to anticipate the counter offer and reinforce why they wanted to leave. Something like "I've guaranteed a pay review in six months, as you mentioned you hadn't received an increase in three years" positions your offer as stronger than where they've been, while reminding them of their frustrations with their current employer.
Give the candidate a script
Don't let your stellar candidate wander off to resign unprepared. Ask them to role play how they will handle the conversation, i.e. "When you speak with your employer and they counter offer you, what do you think you might say?" Remind them of their motivations to leave, and help them mentally prepare. This tackles the resignation panic that some candidates experience and gives them more confidence going in to those conversations.
Find out when they are resigning, and call them afterwards
Staying close during this stage is vital. You want information firsthand, and you want to prevent their current employer from pressuring them into signing something before they've spoken to you. I cannot stress enough how important it is to keep those lines of communication open.
Don't pressure the candidate or make ultimatums
If their employer is upset and you stay calm, you immediately position yourself as the more reasonable party. Just be there, listen to their concerns, and let them work through it. Sometimes simply letting their current employer get emotional will push the candidate toward your role without you needing to do anything at all. It can be good to give them space, and set a reasonable timeline for a decision.
In my experience, following this formula lands the candidate the majority of the time. There are always exceptions - if money was the primary motivator and their employer simply offers more, that's a tough one to overcome. But my final tip is don't get frustrated and take it out on the candidate if you miss out. These situations are not personal, they are business.
There is a famous statistic that 80-90% of employees who accept counter offers will leave within 12 months. If that candidate doesn't join this time, they very well might later on - and you don't want to have ruined that relationship. If they were good enough to hire once, they're still good regardless of what they decide this time around.
Stay tuned for part two, where I cover how to manage a counter offer when it's your own employee who wants to leave!
