Two-Timer Trouble New hire being courted by another company? Now you can fight back.
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Erika Mangrum was thrilled with the new acupuncturist she'dhired to work at Iatria Spa and Health Center, her 62-person dayspa in Raleigh, North Carolina. "He accepted, and we turneddown all the other candidates," says the president of the $3million company.
Mangrum, 38, looked forward to the employee's arrival."Then," she recalls, "he opted out." Afteraccepting the job, but before reporting for duty, the candidateinformed Mangrum the job wasn't going to work out afterall.
Mangrum had to go back to the other candidates she'd turnedaway and say she had an opening again. "That's a littleembarrassing," she says. "Plus, you may have alienatedthem or lost the candidate to another job. It's more time andmore energy."
Counteroffer Conundrum
As the economy and hiring pick up steam, entrepreneurs canexpect more cases of new-hire fallout. "It happens in between1 out of 20 and 1 out of 10 cases," says Elliot Clark, COO ofWayne, Pennsylvania, outsourcing firm Kenexa Corp. "Andit's more common in high-demand areas."
Fallout rates vary by local job markets, industry and skill.Software developers with in-demand expertise, for example, may becourted by companies nationwide. No matter what the cause, falloutcosts would-be employers in effort and outlays for advertising,candidate travel, search-firm or agency fees, and otherexpenses.
When fallout is caused by another employer's counteroffer,don't blame the candidate or the rival employer. Blame yourselffor failing to make a market-aware offer and for failing to preparethe candidate for counteroffers.
Always study the employment market in advance to make sureyou're competitive, says Nicholas Di Marco, professor of HRmanagement at Webster University in St. Louis. "Know yourcompetition, and know where you're strong and not[strong]," Di Marco says. If other employers are likely tooffer a higher salary, emphasize the things money can't buy,such as a pleasant workplace, relaxed dress code or opportunitiesfor advancement. "You may not be able to play up the money,but you may be able to play up the culture," Di Marcosays.
If you suspect new hires will receive counteroffers, coach themon why and how to reject them. Point out that more money won'tnecessarily change factors that originally caused the candidate toseek a new position, such as lack of opportunity. "You want tosell them on the idea that a counteroffer is a negative that maycome their way," says Clark. "Prepare the candidate forthe counter-offer and get them ready to defeat it."
Also, take the high-touch approach. Don't lose contactbetween the time someone accepts your job offer and his or herfirst day on the job. Call for a chat and checkup a week or twobefore his or her start date, and again a few days before. Payclose attention to the new hire's demeanor. "You can tell,if they're nervous or uncomfortable, that something iswrong," says Clark.
Send personal, handwritten notes welcoming new employees.Information about your community and current news of company eventsand achievements help recent hires feel like part of the team. Keepit up even after employees report for work. A good orientationsession, along with personal information about the people employeeswill work with, makes new hires feel like they belong, says DiMarco.
If worse comes to worst and a recent hire informs you thatthey've accepted a counteroffer, don't fret. Clark saysthat 85 percent of the time, a worker who takes a counterofferleaves within a year. If you're still interested later on,you'll likely get another chance to snare the employee--andthis time keep him or her onboard.
Mark Henricks writes on business and technology for leadingpublications and is author of Not Just a Living.
