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Managing Counteroffers

Recruiters World Special Reports

Recruiters must jump through many hoops before closing a candidate. One of the trickier challenges can appear during the final stages of a placement: the counteroffer. Having invested considerable time and energy in placing a candidate, what do you do when the candidate's current employer makes a counteroffer? Should you compete for the candidate or just let things take their natural course? The answer, invariably, is to do what's best for the client and the candidate -- even if the outcome might not seem best for you.

The best defense against a counteroffer is truly a good offense. The more thorough you are in the screening and interviewing process, the less likely you are to be blindsided by a counteroffer. If the candidate has reservations about taking an offer, these issues should be "discovered during the interview process" and monitored through "ongoing conversations with the candidate," according to Pat Hanna, Principal of Hanna Associates. If you’ve found the right candidate and managed the process well, the counteroffer should not be a major obstacle.

An easy way to understand a candidate's intentions is to simply be a good listener. Develop an honest relationship with the candidate and make sure the lines of communication are open. Be an ear for them to talk about their interests, aspirations, and limitations. The better you understand your candidate and their motivations, the less likely you are to be surprised when they decide not to take an offer. If the candidate has genuine reservations, you'll know before they become real issues.

Should a counteroffer still rear its ugly head, remain calm and take a professional approach. Don't try to persuade the candidate to take a job that isn't right for him or her. At the end of the day if it’s not right, it’s not right and heavy selling tactics will only backfire. Furthermore, using aggressive sales tactics is unethical and will ruin the relationship with the candidate. You also risk placing the wrong candidate with you client. Instead, do what's right for the client and the candidate. As far as your own interests go, focus on the long term.

One thing you can do to dilute the impact of a counteroffer is to help the candidate manage his or her emotions. A candidate's first reaction to a counteroffer is often to interpret it as affirmation that they are highly valued by the corporation. The reality is "a counteroffer is usually a quick fix for the company," says Pat Hanna, and rarely the grand gesture the candidate perceives it to be. Be a good sounding board and don't let the candidate get overwhelmed. "Had the company treated the candidate well to begin with, the candidate would not be looking for another job," says Ms. Hanna.

Counteroffers are a normal part of the placement process and they can be deal breakers. When a deal seems to be going south, take it in stride and focus on the long term. See the contract to its natural conclusion while working to secure all relationships. Strong relationships with clients and candidates can multiply into future recruiting engagements -- filling the deal pipeline for years to come. Maintain your professionalism and your candidate and client may well return with additional opportunities in the future.

 

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Recruiters World Special Reports is a timely, in-depth news series that explores vital issues and trends affecting the human-capital industry. Published monthly, Recruiters World Special Reports is presented and distributed exclusively through Recruiters World in Review. Visit the Special Reports archive to read previous articles. Watch for new articles as they appear on the Recruiters World home page.

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