Counter offers can be a setback in the recruitment process. Still, with the right approach, you can overcome this challenge and secure top talent. Remember, you’ve invested time and effort in building a solid relationship with the candidates and clients and finally identified the perfect fit. By being prepared and understanding counter offer dynamics, you can increase your chances of retaining your candidate and successfully closing the placement.
While the candidate seems enthusiastic, they need time to consider the offer. This is a common occurrence. Stay positive and anticipate a favourable response. Remember, you’ve invested time and effort in building a solid relationship and identifying the perfect fit. Your persistence and positive attitude can make a difference in securing the placement.
And then, it happens. A counter offer from the current employer.
Counter offers can be challenging, but with the right approach, you can overcome this hurdle and retain top talent. Our blog provides valuable insights and statistics to help you navigate counter offers effectively. By understanding the dynamics of counteroffers, you can address this situation confidently and increase your chances of securing the candidate.
1. 80% of candidates who accept a counter offer from their current employer leave within six months.
Counter offers may seem like a quick fix to retain top talent, but research suggests that they often need to be more effective long-term. Many candidates who accept counter offers eventually leave their current employers within a short timeframe. This highlights the importance of understanding the underlying reasons behind a candidate’s desire to leave and addressing those issues proactively.
2. 9 out of 10 candidates who accept a counter offer leave their current employer within twelve months.
This statistic shows the uncertainty of the candidates’ future at their existing company. While counter offers can provide a short-term reprieve for employers, they often don’t address the underlying reasons for a candidate’s departure and ultimately result in the candidate leaving within 12 months.
3. 50% of candidates who resign will be counter offered by their current employer.
Counter offers have become more common recently, even for junior positions. While they may provide a temporary solution for employers, they often don’t address the underlying reasons for a candidate’s decision to leave. Businesses should consider alternative retention strategies to secure top talent and build long-term loyalty.
4. It can cost the current employer as much as 213% of the annual salary to replace a senior executive.
For senior roles, it can make complete sense financially for companies to offer counter offers. By doing so, employers can avoid the expenses of recruitment, lost productivity, and training new staff.
Investing in counter offers can be a financially sound decision for employers, as it can avoid the significant costs of replacing key employees.
5. 50% of candidates that accept counter offers from their current employer are active again within 60 days.
Counter offers may seem like a quick fix for retention, but they often have limited long-term effectiveness. Research suggests that many candidates who accept counter offers leave their current employers within a few months. This highlights the importance of addressing the underlying reasons for a candidate’s decision to leave and considering alternative retention strategies.
6. Only 38% of hiring managers reported not making counter offers at all.
The likely scenario is that your candidate’s current employer will make counter offers. In recruitment, you need to be prepared with facts and figures to address this challenge effectively and convince candidates to choose your client.
7. 57% of employees accept counter offers made to them.
While many candidates accept counter offers, it’s important to remember that it’s their decision ultimately. As a recruiter, provide them with the information and support they need to make an informed choice. Helping them with their decision will ultimately maintain your strong relationship with the candidate so that when the time comes for them to take that next step in their career, they think of coming to you first.
