What is a counter offer?

A counter offer in recruitment occurs when a candidate receives a job offer from an employer but chooses to negotiate the terms of the offer before accepting it. Instead of accepting the initial offer outright, the candidate proposes changes to certain aspects of the offer, such as salary, benefits, job responsibilities, or start date, in an attempt to better align the offer with their preferences and needs.

Counter offers typically arise when the candidate feels that certain aspects of the initial offer are not satisfactory or do not meet their expectations. For example, the candidate may negotiate for a higher salary, additional benefits, flexible work arrangements, or more vacation time.

The employer may choose to accept the candidate’s counter offer, reject it, or negotiate further to reach a mutually acceptable agreement. Counter offers are a normal part of the recruitment process, and employers and candidates alike should approach them with open communication and a willingness to find common ground.

It’s essential for both parties to carefully consider the implications of any counter offers and to communicate openly and respectfully throughout the negotiation process. Ultimately, the goal is to reach a mutually beneficial agreement that satisfies the needs of both the employer and the candidate.

How do you counter offer a candidate?

To counter offer a candidate, follow these steps:

Understand the candidate’s concerns: Before making a counter offer, ensure that you fully understand the candidate’s concerns and reasons for negotiation. Review their initial request or concerns carefully to address them effectively.

Assess flexibility: Evaluate the organization’s flexibility in meeting the candidate’s requests. Consider factors such as budget constraints, company policies, and the impact on other team members or departments.

Craft a counter offer: Based on your assessment, craft a counter offer that addresses the candidate’s concerns while also aligning with the organization’s objectives and limitations. Be prepared to offer alternatives or compromises if necessary.

Communicate professionally: Reach out to the candidate in a timely manner to discuss the counter offer. Express appreciation for their interest in the position and their willingness to negotiate. Clearly outline the details of the counter offer, including any adjustments to salary, benefits, or other terms.

Listen and respond: Listen attentively to the candidate’s response and any additional concerns they may raise. Be prepared to address questions or provide further clarification as needed. Maintain open communication throughout the negotiation process.

Negotiate in good faith: Approach the negotiation process with transparency, integrity, and a willingness to find a mutually beneficial solution. Be respectful of the candidate’s needs and preferences while also advocating for the organization’s interests.

Finalize agreement: Once both parties have reached a consensus on the terms of the counter offer, formalize the agreement in writing. Prepare a revised offer letter or contract reflecting the agreed-upon terms and ensure that both parties sign and acknowledge the agreement.

Close the deal: Upon acceptance of the counter offer by the candidate, finalize the hiring process by completing any remaining administrative tasks, such as background checks, paperwork, and onboarding procedures.

By following these steps, you can effectively navigate the counter offer process and reach a mutually satisfactory agreement with the candidate.