What Is A Counteroffer?

A counteroffer occurs when an employee or job candidate receives an offer from an employer but proposes different terms before accepting the position. This could involve negotiating a higher salary, better benefits, additional perks, or changes to job responsibilities. Counteroffers are a common part of salary negotiations and reflect the employee's desire to improve the initial terms of employment.

What HR should include in response to a counteroffer

When responding to a counteroffer, it's important for HR professionals to communicate clearly and professionally. Here are the key elements to include:

A Professional Greeting:

Start the response with a professional and courteous greeting. This sets a positive tone for the negotiation process.

A Message Stating Whether You Accept the Candidate's Counteroffer:

Clearly state whether the company accepts or declines the candidate's counteroffer. If there are any adjustments or partial acceptances, mention them explicitly.

A Summary of New Terms You Are Offering:

Provide a detailed summary of the revised terms being offered. This includes any changes to salary, benefits, job responsibilities, or other conditions that were negotiated.

Reasons Why They Should Join Your Company:

Reiterate the benefits of joining or staying with the company. Highlight the company's strengths, culture, growth opportunities, and any unique advantages that make the offer attractive.

A Statement Asking Them to Provide a Response to Your Terms:

Request a timely response from the candidate to the new terms. This ensures that the negotiation process moves forward efficiently and provides a clear deadline for their decision.

How HR can make a counteroffer

Making an effective counteroffer involves careful consideration and strategic planning. Here are some tips for HR professionals.

Consider Non-Monetary Offers:

Not all counteroffers need to be financial. Consider non-monetary benefits that might appeal to the candidate, such as flexible working hours, additional vacation days, professional development opportunities, or remote work options.

Be Reasonable About Your Financial Proposal:

Ensure that any financial offers are reasonable and within the company's budget. Conduct market research to determine competitive salary ranges and ensure that the offer aligns with industry standards.

Follow Up:

After making a counteroffer, follow up with the candidate to address any questions or concerns they may have. Maintaining open communication helps build trust and shows that the company values its input.

Accept That Some Negotiations Fall Apart:

Understand that not all negotiations will result in an agreement. Be prepared for the possibility that the candidate may decline the counteroffer. In such cases, maintain professionalism and leave the door open for future opportunities.