A Hiring Manager’s Guide to Offers & Counteroffers
By: Carly Richter, Sr. Recruiter
Okay, hiring managers, this one is for you. Let’s talk offers and counteroffers!
If you remember, a while ago, I wrote a blog for candidates about salary negotiations, offers, and counteroffers. But there’s a whole other side to it, right?
As the hiring manager, you’re the one sharing the offer, handling counteroffers, taking things back to decision makers (if that’s not you), and communicating all of that back to the candidate you really want to join your team.
I was a manager hiring for years, and wow, this is bringing me back!
Now, in my current role, I support both the candidate and the hiring manager through offers, counteroffers, and negotiations…oh my!
I’ve learned a few things along the way, and honestly, I keep learning every time it happens.
Read on for a few tips and best practices for how hiring managers can handle offers and counteroffers like a pro!
Hiring Managers: Be Open to Transparent Salary Conversations
This is a skill. It’s something that needs to be learned and practiced, and not everyone has had that training, and that’s okay.
It’s also okay to tell a candidate you need to check on something and get back to them.
How you handle this part of the process can honestly make or break whether your top candidate actually says yes.
One of the first things I tell hiring managers is: you don’t have to meet a counteroffer.
You can meet in the middle, come in lower than their ask, or not increase at all. But it is a conversation!
Start Talking About Compensation Early
Like, first interview early. Not three interviews in!
And not just hoping they saw the range on the job post (although yes, I always recommend posting the range).
I usually say something like: “Our compensation range is $X to $X, does that align with what you’re looking for?”
- Sometimes it’s an easy “Yep, that works!”
- Sometimes it opens the door to a deeper conversation.
Both are totally fine. And then keep that conversation going throughout the process!
Even if you do all of that, counteroffers can still happen!
Totally normal. I’ve worked with managers who get frustrated or confused when it comes up, but candidates should advocate for themselves.
That’s a good thing!
Also, sometimes candidates get not-so-great advice on offers and counteroffering. Or they just don’t fully understand how the process works.
I once worked with an HR manager (who is amazing at handling this stuff for her team!) who didn’t do the strongest job with her own counteroffer. But guess what? She accepted the job and is doing great.
What to keep in mind when counteroffers happen:
Be open and honest.
It’s okay to share with the candidate whether there’s no wiggle room, some wiggle room, or you need to check.
Verbal offers are a great first step, but always follow up with a formal offer.
When I make an offer, I call the candidate first to let them know they got the job (best call to make!). I share the salary and ask about a potential start date to include in the offer. I don’t ask them to accept on the phone. I frame it as an informal call to share the good news. I also ask if they have any initial thoughts and let them know the formal offer is coming for review.
Give them time, but set a realistic deadline.
A good rule of thumb is at least two business days.
If a counteroffer comes up, your next move depends on your role.
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- If you’re the decision maker, great.
- If not, it’s completely fine to say you’ll take it back to the team and follow up.
Sometimes candidates will simply ask: “Is there wiggle room?” What then?
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- Maybe there is.
- Maybe there isn’t.
- Maybe it’s a tight budget or based on experience level.
Just tell them. It’s okay to do that! You can also ask what “wiggle room” means to them to make it a conversation.
If they give you a number, you can absolutely respond.
You can also ask if they’d like to formally submit a counteroffer.
Internal Equity & Counteroffers
We can’t talk counteroffers without considering internal equity!
It’s so important to keep in mind. Even if you really want to say yes just to get someone in the door, what does that do to your current team?
It’s not just about getting this one person in the door; it’s about what happens when your current team finds out.
If you’re wondering what that means, check out this blog we wrote about pay equity. Trust us, it matters more than people think.
A Parting Reminder: Don’t Assume They’ll Have a Counteroffer
And please, please, please don’t go into an offer thinking: “Well, I’ll lowball it and let them counter.”
Just nope.
Go in with your best and fairest offer based on the candidate’s experience and your budget. And tell them that.
You can absolutely still be open to a conversation, but don’t assume they’ll counter.
I really do see the offer and counteroffer landscape changing, and honestly, for the better.
It can feel like a lot to navigate, but once you’ve done it a few times, it becomes much more natural. And at the end of the day, these are conversations with someone you’re excited about bringing onto your team, which is a pretty great place to start.
Be sure to reach out to us at HR Annie Recruitment for additional recruitment support, or contact us to set up a quick chat to assess your needs!
Hey job seekers, do you want to learn more about salary negotiations, offers, and counteroffers from the candidate side of things? I wrote a blog just for you!
And if you’re looking for your next role and want some extra hands-on coaching when it comes to candidate salary negotiations, be sure to check out our career coaching services!
