INTRODUCTION:
A job seeker asked what happens when the selected candidate counters an initial job offer.
RESPONSE:
When an employer extends an offer to their selected candidate they are usually emotionally invested. They have already imagined that person as a member of their team. So, unless they are absolutely unable to pay more, they will consider the candidate’s counter.
Step 1 – Consideration:
Sometimes, someone other than the hiring manager, often the recruiter, extends the initial offer to the selected candidate. When the candidate counters the offer, the recruiter will inform the hiring manager of the counter. The hiring manager then considers the candidate’s counter offer. First, they assess if the counter off is reasonable, given the candidate’s qualifications, the position requirements, and the market value of the job.
Step 2 – Equity:
If the hiring manager determines that the counter offer is reasonable, they will next ask Human Resources to conduct an equity analysis. This review determines if a higher salary for the new employee will create an equity issues when compare to existing similar employees’ salaries. Human Resources may propose an amended offer that is less than the counter offer amount, but that maintains salary equity within the organization.
Step 3 – Budget:
The last step before responding to the candidate’s counter offer, is to determine if the salary budget can afford the proposed amended offer. So, the budget department’s review of the numbers will inform how the next step will proceed.
Step 4 – Respond to the Candidate’s Counter Offer:
During this step, the hiring manager or the recruiter will extend the amended offer to the candidate, or re-extend the original offer if a higher salary is not feasible. They might try to entice the candidate with other advantages and perks. If the candidate accepts, all is well and their pre-boarding begins. If they do not accept, the employer may move to the next candidate or revive the recruitment process. Take it from a hiring manager, this is something that we do not like to do.
CONCLUSION:
The bottom line is that candidates should never accept the initial offer. The employer’s objective is to get the biggest “bang for their buck.” So, although they often plan for a counter, they rarely start with the best and final. They can often afford to pay more; and even a slight increase is good for your personal bottom line.
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Until next time…
Job Search Success to You! Go Get Your New Job!
Be Blessed.
