Why Are Recruiters Losing Candidates Late in the Process to a Counteroffer?

Why Are Recruiters Losing Candidates Late in the Process to a Counteroffer?

Half the candidates who resign from their job are given a counteroffer. Many accept the offer. Candidates may be promised increased compensation or career advancement. Some will remain due to established relationships or having issues resolved. Others may not fit with the new company’s culture or have been looking for a job to start with.

Increased Compensation

When candidates indicate they want to leave, offering additional salary, bonuses, benefits or perks beyond what their new job is offering may be enough to retain them. Candidates may feel the value and recognition they were craving and decide to make things work.

Accelerated Career Path

If a candidate receives good performance reviews during their time with the company, they have made valuable contributions and established themselves as top performers. By sitting down with their employer and sharing they want to leave for additional professional growth, a candidate may be offered training or a promotion to advance their career within the organization. Being able to add to their skill set and gain visibility within the organization may prevent candidates from leaving.

Established Relationships

Having long-cultivated relationships with colleagues and executives makes candidates less likely to want to give them up. If an employer agrees to work with a candidate as part of having them stay, they can improve an already-existing relationship.

Resolved Issues 

A candidate may have sat down with their employer and shared how they do not feel appreciated, want more flexibility for work-life balance or a career change. They may help create a plan for more employee appreciation, a flexible schedule, remote work options, or cross-training in another role or department.

Fit With Company Culture

If the candidate’s and company’s mission, values, and beliefs are not in alignment, the candidate will not want to work there. They will have trouble forming relationships, remaining engaged in their duties, and performing their best.

Candidate Was Not Job Hunting

The recruiter may have contacted them about an opening they would be excellent at. The candidate may have gone through the recruiting process to learn more about the company and opportunity before making a decision. They may have decided against the opportunity but used the job offer as leverage to get more from their current employer.

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