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Counteroffers

Counteroffers and how to handle them for both the company and the candidate.

Insurance Hiring Trends 2020

Insurance Hiring Trends

One recruiting trend evolving since mid-2018 is the lengthening timeline for recruitment. Many talent procurement searches that normally would take 30-90 days, are more commonly expanding to 6 months and even one year or more depending on the niche. The timeline currently can be triple that required just 3 years ago. Companies should be aware of this and avoid waiting until the last minute to begin their search for talent.

Several of IRES’s talent procurement projects initiated between 2018 and early 2019 took well over one year to conclude and many peers in trade organizations report the same findings. The reasons are varied. Competition is at an all time high. Compensation demands have increased. Publicly traded companies are often hamstrung by the inability to offer necessary sign-on or hiring bonuses needed to win over candidates acceptance

Some companies are encumbered by a slow process causing hesitant candidates to abort.

Here are the top 5 causes that prohibit companies to conclude successful hires quickly.

Potholes To The Corporate Recruiting Process

  1. Human Resources Limited Availability Causing Delays Arranging 1st Interview
  2. Excessive Initial Interviews Instead of Single Consolidated
  3. “Wild Card” Management That’s Not Relevant to Hiring
  4. Non-Existent Offer Remuneration Preparedness
  5. Lack of Compensation Negotiation Capabilities

Counteroffers and Double Counteroffers are Back!

Counteroffers and Double Counteroffers are Back!

As we’ve said in the last two years during 2016 and 2017, there’s no point conducting a search unless you are prepared to provide a sufficiently generous offer likely to get someone to accept and resign. A meager 5% increase or even 15% is often insufficient enticement. What’s generous defined as?

That’s spelled out in our job offer booklet and usually equates to a twenty-percent increase at a bare minimum. More is better.  Counteroffers are prevalent and should be factored into the offer and considered a given expectation. Just as is the case with certain real estate markets.  It’s important your job offer is set at a sufficiently high enough percentage point above someone’s current salary so as to be counteroffer proof!

But why are there more counteroffers? Competition is fierce, with a national unemployment rate at 3.9 percent, a rate that is significantly low for executive ranks, and 6.7 million positions open nationwide, there is a clear disparity between the supply and demand of talented professionals.  Because of this reality, companies will do anything to retain talent, which means plenty of counteroffers. So, how do you ensure candidates are not going to accept them?

  • Factor in that sweet spot range – Bottom line: make it a salary they won’t want to say “no” to. In our special report we reveal what the best target salary range is for job offers. This research-based monetary range can help enhance an offer, but other factors can still remain for your candidate.
  • Do your market research – Besides monetary compensation, how does your overall compensation package stack up to industry and regional averages? This can be difficult to determine, so using a recruiter to find out the hot buttons can help. Recruiters can help you move a candidate to the final offer, acceptance, and see them actually show up. Recruiters have the intel and can help companies and hiring managers sell their company to the candidates in this hot market.
  • Tell them about the environment and benefits– Lastly, what benefits and retirement contribution plans do you provide? Will there be additional bonuses throughout the year? In addition to salary and compensation, candidates want to see what other elements of the job will be satisfying to move on. The talent pool is competitive, and the competition is fierce, so incorporating this element and making sure it is a highlight will help you get them to accept.

Reduce your Time-to-Hire Process

Reduce your Time-to-Hire Process

Many companies we hear from each week remain oblivious to the fact that hotly contested talent in key cities from coast-to-coast have multiple opportunities and offers available to them. Between those multiple offers and counteroffers, the tug-of-war for talent is now in full swing. Only those companies with the right blend of perks, incentives, working conditions, fringe benefits, and compensation packages are going to stand any chance at winning the battle.

At times, even incentives and great working conditions may become insufficient if a company’s hiring process is lethargic. The hiring process becomes critical as organizations herd candidates along from first interview to the offer and (hopefully) acceptance stage. Only the quickest and most efficient of those companies will claim victory .

One large insurance company we’re aware of makes a great example of a company that rapidly hires and on-boards individuals faster than the competition can blink. In fact in several cities ranging from Northern California, to Phoenix, Arizona, and Dallas to Florida, they have hired rapidly while the competition lost out. Stringing along talent through unnecessary or lengthy interviews, or arduous profile testing procedures, is likely to dissuade rather than persuade. We’ve observed a few cases this year where the individual candidate decided he/she is worth much more just from making it to the offer stage suddenly increasing their salary requirement beyond the company’s budget. Another example of the pitfalls of a protracted process.

Record Low Unemployment = Fierce Battle for Talent

Record Low Unemployment = Fierce Battle for Talent

Record Low Unemployment = Fierce Battle for Talent

According to the U.S. Bureau of Labor Statistics, the national unemployment rate dipped down to 3.9% this past April, 2018, read more on CNN Money.

That is the lowest rate since 2000. Why is this important to executives currently hiring? Because, while our niche-specific talent searches always focus on small talent pools, record low unemployment always translates to more competition fighting for that same, limited talent, even if your targeted talent is already employed. This makes recruiting even more challenging, which means you need IRES at your side more than ever.

Think of this labor statistic as inviting guests to a pool party but the pool is a small plastic kiddie pool. Imagine all your competitors standing in the kiddie pool shoulder to shoulder because that tiny pool is now your talent pool.  The standing-room only guests? That’s your competition.

Many companies have been asking: how do I get the most out of this shrinking talent pool?

There are several ways you can do this:

  • Choose a recruiting search firm to filter out the clutter.
  • Have a unique selling proposition.
  • Stand out and make a counter-proof offer.

Let’s start with #1— Choosing the Best Recruiting Search Firm

Choosing a recruiting search firm can be a daunting task, but it is necessary when you are searching for talent while your competitors are also doing the same. Recruiting search firms, like IRES, are able to take your needs and assist you in finding the pain points through their extensive knowledge and behind-the-scenes expertise on what you are up against. With over 27 years of experience in the industry, IRES knows how to press the hot buttons and find those candidates that you need and want.

Have a Unique Selling Proposition

Recruiting talent is hard and knowing the baseline of your target candidate helps to ensure that they speak to you. These candidates are heavily recruited all the time, so it is up to you to convince them to make the move. Find out how to create that unique selling proposition and see what the exact salary increase percentage should be and how to gauge the probability that the offer will be accepted or rejected with this helpful special report.

Stand out and Make a Counter-Proof Offer

One of the biggest challenges when searching for that perfect candidate is standing out when the candidate is inundated with calls and is being heavily recruited by all of the other competition. The higher demand of the candidate, the greater the need for you to streamline your hiring process and ensure that you don’t lose someone that can be the best fit for the role you are trying to fill. The hiring process is usually done at a lax pace, but when you are searching for those target candidates you need to make it more like a relay race hitting every mark quickly until you give them the hard offer. How can you ensure that they will even take your offer? Make sure it is counter-offer-proof! These candidates that have chosen to go through your process and get to the finish line even though they are being heavily sought after. Do you think they are going to jump ship and take a chance if your offer is only a small step above what they are already making? No, these candidates need to see that making a transition is going to pay off and will need to see that drawn out before they sign on the dotted line.

To learn more about IRES services, click here.

What’s in Your Process?

Insurance Recruiting and Executive Retained Search Firm Process

What does your Retained Executive Insurance Recruiter do for you?

 

What’s in Your Process? 

One of the greatest challenges I come across is when I have to explain our recruiting process. It’s one thing for me to know the process. It’s entirely another matter when it comes to explaining it to others. Especially each new prospective client we wind up in negotiations in.

Even in cases where we came highly recommended by the most senior-ranking officials within the very organization that has contacted me, I still find myself in a somewhat surprising situation of being expected to sell my process in order to get the contract and retainer. You’d think coming recommended was enough? It’s not!

Since I’m dealing with complex organizational structures, where multiple silos must sign off, whomever the point person is that makes the search firm selection recommendation seeks assurance he or she is recommending the right retained search firm. They want to be sold regardless of whether the CEO of the parent company recommended us.

I used to get frustrated of the weeks that go by … and in my opinion are needlessly wasted … having to answer multiple departments’ questions.

To minimize the decision making time frame and better convey our process to multiple managers I assessed our inventory, created my own internal flow chart, and then decided to hire graphic artists to make infographics used in our pdfs, brochures and presentations.

Given that 3 of 5 clients asking us for RFPs (requests for proposals) now sign up with our recruiting services, I believe I have finally created the correct visual material that best explains the golden search process everyone wants to be assured of.

Defining Our Recruiting Process – Click here to View our Executive Insurance Recruiting Process and receive a white paper compliments of your Retained Executive Insurance Recruiters at IRES, Inc.

 

 

 

 

Retained Search Counteroffers and the Risk of Accepting one…

It is that time again when qualified talent is limited and companies are trying to hold onto their current trained employees.

Retained Search Counter Offer

Retained Search Counter Offer

You present your manager with a resignation and he presents you with a counter offer. Read these articles, written by an expert Insurance Retained Search Professional, and look at these charts before proceeding…

Faced with a counteroffer? Have questions? Call and speak with one of our qualified Insurance Executive Recruiters 704-243-2110.