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Whitepaper - Combatting The Counteroffer _________ Technical recruiters often find themselves used as pawns by job candidates seeking counteroffers. There are ways to detect, and deflect, this practiceMost IT recruiters have heard all the stories by now. They are in every veteran recruiter's experiences. For them, the stories are heartbreaking to hear, even worse to experience, and they do happen every day. It's the one word that drives fear into every knowledgeable IT recruiter.
Here's a recent example: An IT job candidate from Chicago had worked on a year 2000 project for his current employer. He had little more than Cobol and CICS skills in his background. Once he accepted a position at another firm, he was given a counteroffer to stay at the current employer. The current employer matched the other company's job offer and promised him more technical training in other skills. This particular job candidate was made to feel guilty for considering the other offer, because he had spent six years at his firm. So he took the counteroffer to stay on. But within the next two months, he found himself training another employee on his very own project. Within six months of his counteroffer, he was laid off. Suddenly, the firm had downsized this programmer's area and outsourced the remaining year 2000 work. Our former job candidate was out of work for two months before he landed another position, at a lateral salary. Worse yet, his skills weren't as marketable to others as he thought, even in today's tight market. Sometimes candidates use recruiters to get higher compensation; or use recruiters to get counteroffers. How can IT recruiters sense if they are being used in this fashion? Consider an typical IT job prescreening interview that just doesn't seem quite right: Throughout the interview process, the candidate listens well, asks lots of questions, displays just enough interest, but remains deliberately vague and noncommittal on tough issues — compensation, motives, short-term goals, dislikes and so on. To keep you (the recruiter) from getting the upper hand, the candidate dodges your attempts to pick his or her brain, and repeatedly assures you of an "open" and "flexible" stance where the most important issue is "looking for a good opportunity." By artfully maintaining this stance, you have been led to believe that your candidate is sold and ready to go. Because the candidate seems to be flexible on money, you put together what you believe will be a viable offer. You finally give the offer to the candidate and then... silence. We're talking cricket-hearing silence here. Your heart always sinks when you experience
nothing but dead silence after delivering an offer. Of course, your sold- You better believe it! This candidate has got you. The candidate is in the power position, and now has at least three choices:
Yes, yes... you guessed it! They're probing for the dreaded counteroffer. Never forget that word. It will haunt you all your recruiting life. Now, let's consider your options. Do you up the ante? Let us remind you of a recruiter rule:
With this particular candidate, you have to ask yourself, "Do I feel lucky? Will he leave for someone else who pays him more later?" After all, we know that what a candidate does for you, they will also do to you. Stories like these are becoming a daily occurrence in the IT job market. Yet, few IT candidates are ever coached about the impact of a counteroffer on their relationship with an employer, and ultimately, their job. With streamlining and downsizing, many companies are now operating with leaner IT staffs and are less dependent upon acquiring a specific individual. After all, they can get contractors and consultants to carry most projects. And with contractors, there are no benefits to pay. That said, what happens when a key staff member leaves? Only when key IT staff threaten to leave — who are part of the core competencies the firm needs to complete projects — should firms make counteroffers. It's easier to pay salary more for this key resource than it is to start looking for a replacement who has to be trained, or can hit the ground running. Replacing an employee is expensive, as we all know. All those extraneous costs and time affect the cost per hire. And the transfer of knowledge can take weeks and sometimes months. There are many reasons firms make counteroffers.
But for the IT employee, there are no reasons to accept them. Ever! Once you get
a counteroffer to stay, you can bank on the fact that your employer is already undertaking
the search for your replacement. After all, they know your loyalty is gone. So if, as an IT professional, you do receive a counteroffer, what is going on in the head of the employer? Here are a few motivating factors they might be responding to:
As a recruiter, you should discuss the possibility of a counteroffer early in the process. If the candidate seems interested, the first call is not too early. The candidate should be made to understand that there are very few instances when an accepted counteroffer will work to their benefit. As always, when things aren't going your way, plant doubts. The better you know your candidate, the easier it will be for you to raise objections to taking a counteroffer. Explain to the candidate what the employer is likely thinking. Use some of the reasons listed above. Tell the potential IT job candidate about responses they can expect. Knowing these ahead of time can leave the candidate feeling that the employer might have ulterior motives in even considering offering a counteroffer. Tell them to consider some typical comments from employers on the issue.
Coaching the IT candidate is paramount to your recruiting success. All of us have been in the situation of changing jobs. Relate that to the candidate. Add your own experiences. The candidate's current employer knows all the right "Hot Buttons" to push, and so do you if you recruited and interviewed properly. But the counteroffer is another one of those objections we must face and address. And we believe that it must be early on — the first or second call! The time to train your candidate is not when you're ready to extend an offer. Define the conditions of working with you early. Pose a question to the candidate such as, "If you get an offer from us, your firm will probably give you a counteroffer to stay. How do you feel about that?" Many firms don't make counteroffers. And, if your candidate takes a counteroffer, that could spell career suicide. Remember, the candidate broke their commitment to a prospective employer. And statistics show that 85% of those who take counteroffers are no longer at their firm one year later, whether voluntarily or involuntarily. Should your candidate receive a counteroffer, coach them through the formal resignation process that kicks into action. Aid the candidate in writing the resignation letter. It should be short and to the point, leaving no reason for any counteroffer. Go over this counteroffer training a few times with your candidate — in the beginning after an interview, and before you offer. Instill a sense of urgency in your candidate while you ascertain a sincere interest and commitment level. Try to separate the buyers from the shoppers. Stay in touch with your candidate after your offer too. Coach the candidate and make them feel that you're on their side throughout this time. It's a trying time for them. Counseling your candidates from the first call on counteroffers will save you a lot of time and close more candidates. It's terrible to start over again after you've gone so far in the process, so why leave anything up to chance. Counsel on counteroffers from the beginning, or you might be crying in the end. | |||||||||||||||||||||||||||||||||||||||
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