Hire Top Talent with Great Counteroffer Tactics

Managing job offers and counteroffers is so important in today’s competitive job market. A well-handled negotiation can secure top talent, while missteps may result in losing your ideal candidate. To help you navigate this process, we’ve crafted an updated, reader-friendly guide on how to master counteroffers and make the best hiring decisions for your company.

What’s a Counteroffer?

A counteroffer happens when a candidate responds to your job offer by asking for better terms, such as a higher salary, additional benefits, or more flexibility. Mastering the art of the counteroffer can drastically improve your close rate.

You need to do some up-front work!

Learn Your Candidate’s Expectations Right Away

Picture this: You’ve worked hard to find the perfect candidate. You finally offer the job to your top candidate. Instead of a quick “Yes!”, they counter with a request for a $15,000 salary increase. Oops! 

This happens a lot BUT it’s avoidable. Here’s how to prevent it:

• Discuss salary expectations during the first or second interview. 
• Clarify non-negotiables for the candidate and be transparent about your company’s/client’s salary range from the beginning.
• Frame the conversation positively by reassuring the candidate that you’re open to finding common ground.

Be Prepared with Salary Research for Every Role

Your candidate will likely do salary research prior to meeting with you. It’s easy with platforms like Glassdoor and LinkedIn Salary Insights, so ensure your offer aligns with market rates.

Here’s some tips on how to do the research:

• Use salary research tools like PayScale, Glassdoor, and LinkedIn Salary Insights to learn what companies are paying for the role you’re hiring for in your market.
• Factor in location-based variations in salary expectations, especially for remote or hybrid positions.
• Offer a comprehensive package beyond salary—consider bonuses, stock options, and benefits like remote work or flexible hours.

Make the Initial Offer Strong! 

1. Present the Offer as a Total Package

Salary alone won’t cut it. Your candidates care about more than salary. The whole package includes benefits, work-life balance, career growth opportunities, and flexibility. If you fail to emphasize these elements, candidates may focus solely on salary, leading to a counteroffer.

Tips for presenting your offer:

• Discuss all parts of the compensation package—salary, bonuses, growth opportunities, health benefits, and work-life balance perks.
• Use visual aids like charts to help candidates see the total value of your offer.
• Know Your Audience: What’s most important to THIS candidate? Focus more heavily on that aspect of the offer.  For example, talk it up if they want to work remotely and this job allows it.  That may offset a lower salary than they were expecting.

2. Present the Offer as Fast as Possible

Timing is everything. You don’t want your candidate to lose interest, take an offer from the competition, or have time to submit a counteroffer to you.

Keep things moving:

• Send the offer within 48 hours of the final interview.
• Keep talking with them if delays arise.
• Ensure your internal approval processes are streamlined to avoid unnecessary holdups.

What to do with a Counteroffer: 

1. Keep the lines of Communication Open

When candidates submit a counteroffer, they want you to respond quickly. If you don’t, they may start looking for other opportunities.  If you need time, let them know.  That is critical.  COMMUNICATE!

Steps to handle this gracefully:

• Respond within 24 hours of receiving the counteroffer.
• Show appreciation for their input with phrases like: “Thank you for sharing your thoughts. We’re reviewing your request and will get back to you shortly.”
• Keep communication open so the candidate feels involved and respected.

2. Discuss the Counteroffer with Stakeholders

Not every counteroffer should be accepted immediately. Discuss how the candidate’s request fits your budget and pay bands. 

Tips for evaluating a counteroffer:

• Consult with HR and finance to understand the long-term impact of the requested changes.
• Consider internal equity—how will this counteroffer affect your current employees’ salaries and expectations?
• Look at the candidate’s overall value and how their request aligns with their skills and your business needs.

Responding to the Counteroffer: Securing the Deal

1. Be Decisive—Don’t Leave Candidates Waiting

Once you’ve assessed the counteroffer, act quickly. Delays can cause candidates to second-guess their decision or accept other offers.

Best practices for closing the deal:

• Make your final decision within 48 hours of receiving the counteroffer.
• Communicate confidently whether you’re accepting, negotiating, or holding firm on your original offer.
• Reinforce the total value of the position, including long-term career benefits, flexibility, and company culture.

Real-World Example:
A retail company lost a senior manager candidate after taking too long to respond to a request for additional stock options. The delay caused the candidate to accept an offer from a competitor.

2. Highlight the Full Value of Your Final Offer

If you can’t meet all the candidate’s demands, explain why. Transparency helps build trust, and candidates are more likely to accept your offer if they understand the reasoning behind it.

How to communicate effectively:

• Emphasize career growth opportunities, mentorship, and work-life balance to make up for any salary shortfalls.
• Be transparent about budget constraints or other limitations, which shows honesty and fairness.

Real-World Example:
A healthcare company successfully secured a nurse practitioner by explaining why they couldn’t meet her full salary request. They emphasized other perks like mentorship programs and flexible schedules, which ultimately convinced the candidate to accept the offer.

Mastering the Counteroffer Process: Conclusion

In today’s fast-paced job market, mastering the counteroffer process can set your company apart. By anticipating candidate needs, presenting offers promptly and comprehensively, and responding to counteroffers with confidence, you’ll create a positive hiring experience that attracts and retains top talent.