As a recruiter, winning the battle against a counteroffer can be challenging. Candidates may decide to accept a counteroffer, then resume their job search within months. Knowing relevant statistics on why candidates accept counteroffers can help you prevent this possibility.
Half of Candidates Receive a Counteroffer
Because replacing an employee costs time and money, employers do what they can to retain talent. Although a counteroffer may make the candidate feel valued, they typically will not remain loyal to the business. When they are ready to make their next move, you want to be the person they contact first.
Over Half of Candidates Accept Counter Offers
To combat this issue, act as an adviser to candidates by providing a broader context and clarity to judge whether they should remain with their current employer. Because the candidate’s career and future are at stake, they need to decide what is best for them.
Half of Candidates Who Accept Are Active Again Within 60 Days
This emphasizes how accepting a counteroffer is typically a short-term solution to a long-term problem. The excitement over increased compensation and promise of additional responsibility quickly goes away. The core issue that drove the candidate away in the first place still remains. Remind candidates to look at the entire situation. Stress the importance of the right corporate culture, benefits and company stability.
The Majority of Candidates Who Accept Leave Within 6 to 12 Months
Because a candidate has already moved through the application and interview process and received a job offer, their motivation to leave has been established. Also, 90 percent of candidates who accept a counteroffer leave their employer within 12 months. Although accepting a counteroffer benefits the employer by allowing time to find a replacement, the candidate still does not see themselves with the company long term. No increase in compensation can make up for an unresolved work issue.
Replacing a Senior Executive May Cost Over Twice Their Salary
An employer may pay as much as 213 percent of annual salary to replace a senior executive. Because it may cost up to $426,000 to replace an executive earning $200,000 annually, providing a counteroffer is in the employer’s best interest. Factoring in the recruitment process, time lost on work, training costs and other expenses, a reasonable salary increase makes financial sense until a replacement can be found. Remind candidates that a counteroffer is similar to hazard pay. The company is buying time to find their replacement.
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