Candidate just accepted a counter-offer!!! What are your prepping strategies?

I work in the biotech/pharmaceutical/medical device industries, and identified a candidate with a rare skill set for a diagnostic company. After 3 or 4 on-site interviews, going back and forth to negotiate starting salary, year end bonus, benefits, and convincing the client that this candidate is worth the 100K base salary, the candidate signs the contract, calls me, thanks me, and is looking forward to starting the third week of July.
On the monday of the holiday weekend here in Toronto, I receive an email from the CEO of my client telling me the candidate has recinded his acceptance, and accepted a counter offer from his current employer.

Sure, I didn't think I had to coach this candidate on a counter-offer scenario as he was excited about joining this great, recently public company doingcutting edge molecular diagnostics.

My client was obviously in shock!! And asked what they could do to woo him more. I let the client know, in my opinion, that we should let the candidate accept the counter-offer, as, in my opinion, anyone that signs a contract then renegs is no-one that should work for my client. Sure, 25K walked out my door, but the client is a repeat client, and I know I'll fill the job immediately with someone else.

After my candidate told me he accepted the counter, I went through the usual arguments agains accepting the counter offer; "why now offer you more money and responsibility"; "you'll be layed off or fired sooner than you think", etc.

My question to all of you, is "how do you prep your candidates for a counter-offer".
Thanks

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Permalink Reply by David Hafernik on July 6, 2007 at 9:59am

I have found that the best prep for a counter offer is simply to talk to the candidate about the chance of getting one. If you talk to them about it up front, prepare them for the chance that they might get one, find out if a counter offer comes, whatr would it take to get them to stay where they are, etc. You can preemptively address those issues and show them that the better long term position is with your client.

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Permalink Reply by Kalch on July 6, 2007 at 10:17am

i did the latter of your suggestion. I was, unfortunately reactive, as opposed to proactive in addressing the counter. We had matched the base and bonus of his promotion, but he had an upside of several hundred thousand dollars of stock options, that no matter how much I tried to explain to him he seemed incredibly happy that his current employer had assessed his work as worthy of a promotion, etc.

He would have left my client for a veal sandwhich if he took the job, probably.

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Permalink Reply by Jim Damico on July 6, 2007 at 5:13pm

I agree with David, you have to prep the candidate well in advance of an offer being recieved. My strategy is to have the converstation about counters at least 3 times during the interview process. Once during my initial interview with the candidate, then immediately after their first interview with the hiring manager, and then again during my final preclose.

If I'm not 100% on their full commitment to shrug off counter offers, I'll run through everything again and again, but if I can't get them to 100% I'll pull the plug.

Also during my discussions I will help them visualize scenarios and role play with them. This has been very effective as recently I've had two candidates who turned in notice and within 24 hours Business Unit Presidents were in their offices "hot boxing" them to accept a counter. We prepared for the eventuallity of this happening, role played, and they both refused the counters.

Jim

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Permalink Reply by Daniel Sweet - Houston Recruiter on July 11, 2007 at 12:25pm

I agree with these - as soon as we start talking about another position, I ask them, "What are you going to do when your current company gives you a counter offer, which I guarantee that they will do?"

They always argue that they're company won't because they don't like their company. I explain that it doesn't have anything to do with nice, it's just that they want the work done until they find your replacement. That puts things in a different perspective and helps them start to plan for the eventuality.

I also have them mentally break down the counteroffer in their mind. If they're giving a $13K raise, that's "keeping you around for minimum wage" - a no brainer for the company.

Dan