Counteroffers and Double Counteroffers are Back!
As we’ve said in the last two years during 2016 and 2017, there’s no point conducting a search unless you are prepared to provide a sufficiently generous offer likely to get someone to accept and resign. A meager 5% increase or even 15% is often insufficient enticement. What’s generous defined as?
That’s spelled out in our job offer booklet and usually equates to a twenty-percent increase at a bare minimum. More is better. Counteroffers are prevalent and should be factored into the offer and considered a given expectation. Just as is the case with certain real estate markets. It’s important your job offer is set at a sufficiently high enough percentage point above someone’s current salary so as to be counteroffer proof!
But why are there more counteroffers? Competition is fierce, with a national unemployment rate at 3.9 percent, a rate that is significantly low for executive ranks, and 6.7 million positions open nationwide, there is a clear disparity between the supply and demand of talented professionals. Because of this reality, companies will do anything to retain talent, which means plenty of counteroffers. So, how do you ensure candidates are not going to accept them?
- Factor in that sweet spot range – Bottom line: make it a salary they won’t want to say “no” to. In our special report we reveal what the best target salary range is for job offers. This research-based monetary range can help enhance an offer, but other factors can still remain for your candidate.
- Do your market research – Besides monetary compensation, how does your overall compensation package stack up to industry and regional averages? This can be difficult to determine, so using a recruiter to find out the hot buttons can help. Recruiters can help you move a candidate to the final offer, acceptance, and see them actually show up. Recruiters have the intel and can help companies and hiring managers sell their company to the candidates in this hot market.
- Tell them about the environment and benefits– Lastly, what benefits and retirement contribution plans do you provide? Will there be additional bonuses throughout the year? In addition to salary and compensation, candidates want to see what other elements of the job will be satisfying to move on. The talent pool is competitive, and the competition is fierce, so incorporating this element and making sure it is a highlight will help you get them to accept.