Hiring Managers: Expect an Increase in Counteroffers for Your Prospective New Hires

Today’s job market is extremely competitive. It has been well publicized lately that there are currently more jobs available across the country than there are people to fill them. And if you do business in a highly specialized industry, the talent market is exponentially more competitive. Based on today’s employment market conditions, it can be very disruptive to lose talented employees. Most organizations that are faced with this type of event understand the challenges that lie ahead to replace them:

• There will likely be a significant amount of time spent before a new employee is hired to back-fill the position. In the interim, other members of the organization will need to “pick up the slack.”
• Hiring managers will need to dedicate time that they often feel they don’t have to recruit, interview, hire, and train a new employee.
• New talent often demands higher compensation requirements in comparison to the departing employee, creating potential strains on the budget.
• No organization likes to lose talented people.

These, along with the tight labor market, are all contributing factors that will likely lead to an increase in the likelihood that your prospective employee will receive a counteroffer from their existing employer. This obviously begs the question, “How do I protect against my prospective employee accepting a counteroffer?”

There is a strategy that you can take to minimize this risk and ensure that your candidate will show up on “Day 1.”

• From the start of the interview process, make sure to identify key factors that has, and will continue to, motivate your candidate to follow through on their commitment to you. These factors should be reinforced throughout the process. Ideally, the strongest motivators are not centered around compensation. Instead, they are centered around professional challenge, career growth, and cultural fit.
• Move to an offer as quickly as possible. Delays during the offer stage create doubt in the mind of your candidate. A smart, deliberate, expedient approach tells your candidate, “Wow, they really want me!”
• We all work for money, right? So, create a compensation package that will be very difficult for the current employer to match. Inclusive of special benefits (vacation, 401k, health, equity, etc.).
• Once an offer has been accepted, follow up with a personal call to the individual to welcome them on board. Send company “swag” to their home so they start feeling like “part of the family.”
• Coach them through the resignation process. This can be a very stressful time for this person, and it is not something that most people do often. Give them an indication of what to expect and have the individual commit to call you after they tender resignation – don’t leave anything to chance.
• Lastly, make it a point to communicate to your new hire during their notice period (usually two weeks from resignation). Updates regarding their on-boarding schedule, company news, etc. can help keep them engaged.

If you take time and create a thoughtful approach during this process, you are much more likely to ensure that your new hire will get through the resignation process and begin their new career with your organization.