Demystifying Counteroffers: 3 Key Conversations You Need

You finally landed your dream job. The offer comes in, and you're ecstatic —until you see the salary. It's way below what you expected. Don't panic. Take a deep breath and get ready to negotiate. A counteroffer is your chance to push for the compensation you deserve. But you need to be strategic. Approaching negotiations with aggression rarely works.

Your recruiter holds the keys to a higher offer. Make sure they're having the right conversations before you even get the initial offer. We'll explore the three critical counteroffer conversations recruiters should have to secure you the best deal. With the right preparation and expectations, that counteroffer can mean an offer you're excited to accept.

The First Conversation: Understanding the Counteroffer

When an employee tenders their resignation, the first instinct of many companies is to make a counteroffer. As a recruiter, it's critical that you have an open conversation with the candidate about what's motivating the counteroffer and determine if it's the right choice for them.

Some companies make counteroffers simply to stall while they search for a replacement, with no real intention of promoting or developing the employee. Ask the candidate if their company has a history of making empty promises or if colleagues who have accepted counteroffers felt genuinely valued and progressed in their roles. If it's the former, the counteroffer is a stalling tactic and not in the candidate's best interest.

Other companies make counteroffers because they genuinely want to retain top talent. However, the root issues that drive the candidate to find a new job are often still unaddressed. Discuss what would need to change for the candidate to stay, whether the company would be open to those changes, and if they have a track record of following through. If underlying problems can't be fixed, the counteroffer is a band-aid, not a solution.

The decision to accept or reject a counteroffer is complex, with many factors to consider. As a recruiter, having honest conversations about the company's motivations, the candidate's needs, and the likelihood of real change can help determine if the counteroffer is too good to refuse or an offer that's best refused. Keeping the lines of communication open and focusing on the candidate's long-term career interests will build trust and help them make the choice that's right for them.

The Second Conversation: Assessing the Candidate's Motivations

After making an offer, recruiters must discuss the candidate's motivations. Counteroffers often include promotions or higher pay, so you'll want to know if the candidate is serious about the new job.

If the candidate seems primarily motivated by compensation or title, that may indicate their loyalty can be easily swayed. However, if they express a genuine interest in career growth opportunities, learning and development, or the company's mission, it demonstrates that their motivations align with the values of the new organization.

Recruiters must ask open-ended questions to assess the candidate's priorities and determine if the counteroffer is appealing because it's the "easy" choice or if the candidate feels a strong connection to their current company. Candidates who want to advance their careers are less likely to accept counteroffers.

The motivations conversation is a chance for recruiters to reiterate why the new position is the right move for the candidate's career. Highlighting future growth potential, learning opportunities, and mentorship can reinforce that this role will position them for long-term success. Candidates need to see that turning down the counteroffer is a strategic decision, not one made rashly or without forethought. Recruiters who take the time to have this critical conversation will find that candidates are less likely to accept a counteroffer in the end.

The Third Conversation: Developing a Negotiation Strategy

Once you've clarified the reasons for the counteroffer and your candidate's priorities, it's time to strategize. A well-developed negotiation approach is key to overcoming objections and securing an accepted offer.

Start by determining your "walk away" point—the minimum salary or benefits your candidate will accept. Be transparent about compensation ranges for that position so you're both on the same page about what's reasonable.

See if there are any points where you can compromise, like extra vacation days, flexible work schedules, or bonuses. Sometimes candidates just want to feel like they "won" something in the negotiation. If you can find an area where you're able to be flexible, that can go a long way.

Discuss ways to bridge the gap between the initial offer and the counteroffer. Can you justify increasing the base salary? Would a signing bonus make sense? Present options at different price points and see how your candidate responds. The goal should be finding a solution you're both happy with, not "winning" the negotiation.

Role-play the conversation before speaking with the hiring manager. Practice responses to common objections and questions. Discuss ways to frame the request that focus on value to the company, not just the candidate's needs. The more prepared you both are, the more confident you'll feel in discussions.

With a thoughtful strategy in place, you'll be ready to have a productive follow-up conversation with the hiring manager. Stay focused on interests, not positions, and approach the discussion with a spirit of openness and collaboration. With patience and persistence, you can negotiate past the counteroffer and get to "accepted"!

Conclusion

So, there you have it! Negotiating counteroffers is serious business. If your recruiters aren't engaging in these three essential conversations with you, it's time to speak up to address your concern. You deserve to have all the information to make the best decision for your career. Don't be shy about pushing for more details on the counteroffer terms, timeline, and motivations. And be sure to share your thoughts openly too.

With good communication, you and your recruiters can partner to manage counteroffers smoothly. Trust your gut in the end—no job is worth taking if it doesn't feel right, no matter how good the counteroffer seems on paper. You've got this! Now, get the job and salary you deserve.