This second section is from the standpoint of an employer attempting to hire a new employee.
WHY IS COUNTER OFFER A PROBLEM?
Taking a candidate through the entire interview process only to have them turn down your offer and accept a counter offer from their current employer is a major negative for you and your company.
SIGNIFICANT TIME CAN BE WASTED PURSUING A NON-SERIOUS CANDIDATE.
IN TODAY'S COMPETITIVE MARKET, YOU MAY LOSE A GOOD CANDIDATE WHILE PURSUING AN UNREALISTIC CANDIDATE.
WHAT CAN YOU DO TO AVOID THE PROBLEM OF COUNTER OFFER?
As an employer, you may ask, "How can I avoid losing a possible new employee to a counter offer situation?" The answer to this question revolves around your understanding in two areas. First, you must know what is motivating a candidate to leave his/her job for your opportunity. Second, you must learn to address counter offer issues with a candidate during the interview process.
Let's take a look at these two areas more closely:
I. UNDERSTAND THE CANDIDATE'S MOTIVATION.
Be aware there are two types of candidates and they should be viewed differently.
Unhappy and eager for a change.
This type of candidate wants to leave his/her present job for specific reasons but may also be attracted to your firm for other positives not available in their current position.
Happy and well positioned. Only motivated by added opportunities.
This type of candidate is at a higher risk for a counter offer. They are not as anxious as the unhappy person to make job move. They must be challenged even stronger regarding their needs and wants and their attitude toward accepting a counter offer.
"What is motivating you to consider leaving your current position?"
"What do you see this position offering you, which is different than what you currently have?"
"What are the positives and negatives of your current opportunity?"
"What do you see as the positives and negatives of this opportunity?"
Your goal is to understand the underlying motivation of the candidate regarding leaving his/her company as well as the attraction to your opportunity for the purpose of determining whether your firm can or cannot meet this candidate's expectations. Pass if you are not confident that you can.
II. ADDRESS COUNTER OFFER WITH THE CANDIDATE DURING THE INTERVIEW PROCESS.
IF YOU ARE USING A SEARCH FIRM, THE COUNTER OFFER ISSUE SHOULD BE HANDLED BY YOUR RECRUITER AS WELL AS YOURSELF. REMIND THE RECRUITER THAT YOU DO NOT WANT TO MAKE AN OFFER TO A CANDIDATE WHO WILL TURN IT DOWN FOR A COUNTER OFFER.
FIRST INTERVIEW (telephone or face-to-face):
If you are interested in pursuing a candidate, you must address counter offer in the first interview. Towards the end of the interview, explain to the candidate that you are interested in them for your position. However, you want to make sure they are serious about leaving their current employer. It is now time to discuss the counter offer issue.
First, review with the candidate the reasons they gave you for leaving their current position and why they are interested in your position, thus determining if this is a candidate you are seriously interested in.
Assuming this is a YES, you must next ask them if there is anything their current employer can still do to remedy their situation. Ask them DIRECTLY..."Have you discussed your concerns with your employer and given them an opportunity to fix the problem or give you the new opportunity you are seeking?"
CANDIDATES WILL FALL INTO ONE OF THREE CATEGORIES WITH RESPECT TO THEIR RESPONSE TO YOUR COUNTER OFFER QUESTION.
SCENARIO 1. NOT YET TALKED WITH EMPLOYER:
If the candidate responds by telling you he/she has not talked to their current employer regarding his/her problem or lack of opportunity, SEND THEM BACK TO DO SO. Tell them that they should give their current company the chance to remedy their situation.
Explain to the candidate you are interested in hiring them but that you do not want to move forward until they are absolutely sure they cannot fix their problem(s) where they are. You will have to coach them as to how to approach their employer. Tell them to go to their supervisor or an appropriate party and discuss their issue(s). The goal is for the candidate to get an honest answer from their employer regarding their issues. The candidate should not threaten their company with the idea they are thinking about leaving.
You will need to explain to the candidate that it is in their best interest to get honest feedback from their company rather than wait and get a response when they are turning in their notice (if they resign), because the company will then be under pressure to find a "quick fix" to a crisis situation. Promises made under these conditions are rarely kept
When this conversation takes place, if the company does not respond to the satisfaction of the candidate and they then feel sure of their decision to leave, they should call you back to proceed with the interview process.
SCENARIO 2. SURE OF DECISION:
If the candidate has already talked with their employer and says their problem Is unfixable or the challenge they are seeking is unattainable, then ask the candidate..."You are telling me there is nothing your current employer can do to retain you. You will not accept any type of counter offer if this correct?". Make sure you get a firm answer from the candidate. If so, then proceed with the process.
SCENARIO 3. RISKY CANDIDATE:
If the candidate says they have talked with their company but you are not getting a firm commitment that they will not accept a counter offer, drop the candidate or continue, knowing the risk is high this individual will turn down an offer from you.
In this type of situation, be sure you have a solid "back-up" candidate. Keep in mind that some individuals use the interview/offer process to get a raise or promotion with their present employer. If you sense this might be the case with a candidate, DROP THEM. It is time to go and find a serious, committed candidate.
BEFORE MAKING AN OFFER:
Test counter offer one last time. Have a face to face meeting with the candidate (if possible) to make an offer. Before extending an offer, say to the candidate, "We are excited about having you on board with our company and are ready to extend an offer to you in writing. Before I do this, I want to make sure you are ready to receive our offer. Assuming the offer is complete and acceptable, is there any reason you would decide to stay at your current company?" Look them in the eyes and wait for a response. Assuming they come back with a strong NO...continue with the offer presentation. Of course, if you sense any hesitation...stop and discuss what is on the mind of the candidate.
FINAL RECOMMENDATION:
When hiring, always conduct a thorough search, resulting in a short list of a minimum of three candidates, to ensure you will fill your position. This is the only real guarantee that you will not be adversely affected by a counter offer scenario!
