Thursday, July 17, 2008

You're going to do WHAT?

Counter-offers. The bane of any recruiter's existence. Every one of us has had a great deal fall through at the eleventh hour because our candidate got a counter-offer. I vividly remember the first time I celebrated a closed position only to have the candidate call me the next day and say, "My employer gave me a raise to stay so I'm not going to take this position after all. Sorry."

It happens to the best of us and in my experience candidates fall into one of two categories when it comes to counter-offers.

Candidate 1 - This candidate insists they really, really, really want to leave their current position. They list dozens of reasons why they Must. Leave. Now. They happily proceed through the interview process and aggressively pursue feedback and are quick to respond when you call them. They get the offer and give notice. Then they receive a counter and decide to stay with their current employer. It can't be proven, but it seems like this candidate was riding the whole process solely to get the counter-offer and have no intention of changing jobs.

Candidate 2 - This candidate insists through the process they are absolutely ready for a change and their employer certainly wouldn't dream of giving them a counter-offer. They go through the entire hiring process, get an offer, accept the offer, give notice and when the counter comes they are shocked. SHOCKED I tell you! They are also pleased as punch and since they are obviously so appreciated and valued by their current employer they certainly couldn't change jobs.

These candidates may have different starting points, but they end up in the same place. Still working for the same company they started out with.

As a recruiter that is obviously frustrating. Most likely you have stopped seeking new candidates and once the offer came in you probably cut loose anyone else in your loop. You have start to all over with recruiting and that is IF the client doesn't decide you are to blame and pulls the req altogether.

So, how can you maintain some control over the counter-offer and your candidate's response to it? YOU TALK ABOUT IT. Right from the start you address the issue of counters and how your candidate would respond to it. Don't just ask them once. Ask them at each step of the interview process. The more you talk about it the more prepared you are and the more your candidate is prepared to handle the counter-offer.

I generally do several things to determine whether or not my candidate is a fit AND whether or not they are interviewing for the sole purpose of getting that counter-offer.

1. All of my interviews include questions regarding what they like about their current role, don't like about it, would change about it, etc. Why are they looking to leave? What one thing could they change that would keep them there? Would higher pay get them to stay? Would a different boss keep them there? Would a promotion keep them there?

2. In the first interview I ask them if they would accept a counter-offer if they received one. I am interested in how they handle that question. Are the quick and concise? Do they seem unsure? Their response at this point isn't the end of the road for that candidate, but it is certainly something to keep a finger on as you progress through the interview process.

3. After every interview a candidate has with the client you are most likely doing a debrief. In every debrief you need to gauge their commitment and you need to ask them again about a counter-offer.

4. I remind all of my candidates that statistically speaking an employee that receives a counter-offer and accepts it will be gone from that position inside of a year. Their current employer doubts their loyalty. They are wondering if every time they call in sick or show up late or leave early, "Are they at an interview?" The first time the company does lay-offs? They are on the chopping block.

If the company doesn't get rid of them it is likely they will end up taking another job later. Why? Because all those things they told you they didn't like about their current job? Those things haven't changed. Hate your boss? Well, they're still your boss. Hate your team? You guessed it. Still your team. Hate the politics? Still there and probably worse because now? You're a traitor.

5. When the counter-offer comes and my candidate wants to take it? I ask them if their current employer valued them so much why did they have to give notice to get the raise/promotion/pat on the back they deserved? If they are so quick to give it to you now why didn't you get it all along? Don't you want to work for an employer that recognizes your value during the interview process?

You can't guarantee that your candidate won't accept a counter-offer when it comes. You are dealing with a person that is likely to behave in ways you could never even begin to predict; however, if you keep the topic of counter-offers as a regular part of your interview process it will decrease the odds that the last minute counter-offer will throw your deal into a tailspin.