What Is A Counter Offer?

Counter Offer

A counter offer isn't merely about asking for a higher salary. It's a strategic move by a candidate in response to an initial salary offer by an employer. Candidates may counter offer if they feel the original offer doesn't measure up to their value and needs, both financially and personally. Here are aspects to consider:

  • Candidate Representation: Recruiters work with the candidate to secure the best possible offer while representing their best interests.
  • Identifying Counter Offer Risks: Accepting a counter offer may sometimes be risky. Executive recruiters can guide on the potential implications.
  • Educating the Candidate: It's crucial to inform the candidate about the pros and cons of counter offers for an informed decision.

Deciding whether to stay or go hinges on the counter offer's attractiveness against other potential job offers. All isn't always as it seems.

What HR should include in response to a counter offer

When a candidate presents a counter offer, it's not to be dismissed. Crafting an artful response can sway the decision towards your favor. Keep in mind - it's not always about more money. So, what should an effective response contain?

A Professional Greeting

Strive for a warm, personable greeting, one that respects the candidate's endeavor to negotiate. Remember, this isn't just a business correspondence; it's a crucial junction in your mutual journey.

A Message Stating Whether You Accept the Candidate's Counter Offer

Clearly indicate your thoughts on the counter offer. They've put forth their expectations, now you present yours. It's okay if it's a no; constructive honesty could be met with more respect.

A Summary of New Terms You Are Offering

The chessboard's reset. Lay out your new terms succinctly, aligning them with the candidate's expressed needs and company constraints. Your solution might even reflect a novel understanding of candidate's expectations.

Reasons Why They Should Join Your Company

Reignite the candidate's interest in your company. Passionate about green initiatives? Show them how your company's a sustainability leader. Remember, you're selling a dream, not just a job.

A Statement Asking Them to Provide a Response to Your Terms

End with a call to action. Without pressuring, encourage a swift response. A subtle nudge could expedite the decision, helping both parties to move forward. This may further demonstrate your commitment and eagerness to have them on board.

How HR can make a counter offer

There's a power that comes from understanding the dynamics of the offer and counter-offer dance. It helps HR professionals draft an offer that's enticing, balanced, and more likely to be accepted.

Consider non-monetary offers

It's not always about the money. Sometimes it's about:

  • Career progression opportunities
  • Impressive benefits packages
  • Flexible working hours

The candidate's values or lifestyle necessities can guide these non-monetary offers. By understanding what's genuinely important to the prospect, one can craft a counter-offer that makes them feel valued and recognized.

Be reasonable about your financial proposal

Money talks, but only when the conversation isn’t one-sided. It's crucial to:

  • Understand the candidate's financial expectations
  • Be aware of the industry standards
  • Balance the budgetary constraints of the company

Being transparent with the candidate about the compensation package, showing them where there’s room for negotiation, and where there’s not, will instill trust.

Follow up

Patience isn’t just a virtue, it's a HR necessity, especially during negotiations. It's essential to:

  • Promptly respond to candidate’s queries
  • Nurture the communication link
  • Give the candidate space to decide

Regular, professional follow-ups signify commitment and respect, creating a favorable impression on the candidate.

Accept that some negotiations fall apart

In the good, the bad, and the unsuccessful negotiations, there's always a lesson to be learned. For those situations where an agreement can't be reached, it's beneficial to:

  • Analyze the negotiation process
  • Identify areas for improvement
  • Use the insights for future negotiations

Recognizing that every negotiation won't always lead to an agreement helps maintain a balanced perspective and a potent preparation for future interactions.