Offer Design & Counter-Offer Strategy

A well-designed job offer is more than a written promise — it’s the moment when candidate interest converts into commitment. Get it right and you secure talent quickly and with goodwill; get it wrong and you risk losing the hire or creating future friction. Equally important is a sensible strategy for handling counter-offers, whether coming from the candidate or as an employer response. This article outlines practical, plain-English guidance to craft fair, competitive offers and manage counter-offers with confidence.

Offer design: core principles -

• Clarity: An offer should leave no room for guesswork. Be explicit about salary, benefits, hours, location and any probationary arrangements.

• Fairness: Ensure internal equity by using pay bands and clear criteria so similar roles are rewarded consistently.

• Simplicity: Present the essentials up front; supporting detail can follow in attachments or policies. A concise package is easier to read and quicker to accept.

• Value-led framing: Candidates judge offers holistically. Explain the full reward picture — development opportunities, flexibility, and non-financial benefits often tip the balance.

• Speed: A clear, timely offer demonstrates seriousness and respect for the candidate’s time.

Key components to include -

1. Role summary and reporting line — One short paragraph that confirms title, team and who they report to.

2. Start date and working pattern — Be realistic about notice periods and state whether remote, hybrid or on-site working applies.

3. Salary and pay schedule — State the base salary, frequency of payment and any probationary pay arrangements. If there’s a salary range, explain where the offer sits within it.

4. Bonus, commission or incentive structure — Explain eligibility, typical targets and payment timing in simple terms.

5. Benefits and total reward — Highlight pension, healthcare, holiday allowance, leave policies, learning budgets and any flexible benefits.

6. Notice period and probation — Clarify both employee and employer notice and probation length with any specific performance review checkpoints.

7. Conditions of offer — Right to work checks, references, background checks or professional registrations should be listed plainly.

8. Acceptance process and deadline — Tell the candidate how to accept and by when, and who to contact with questions.

Making offers more compelling (without overspending) -

• Flexibility: Offering flexible working, phased start dates or part-time options can be attractive at low cost.

• Development: A clear training or mentoring plan often adds perceived value equal to monetary perks.

• Onboarding clarity: Promising and delivering a structured induction reassures candidates about the first 90 days.

• Relocation or sign-on support: For hard-to-fill roles consider modest relocation or allowance packages rather than large permanent salary increases.

Handling counter-offers: employer and candidate perspectives -

Counter-offers can arise in two ways: the candidate negotiates the incoming offer (seeking higher pay, different benefits or conditions) or the current employer makes a counter-offer when a valued employee hands in notice.

If a candidate negotiates...

• Listen first: Ask what’s most important — pay, flexibility, role, or development.

• Assess within policy: Check pay bands, budget and internal fairness before agreeing changes.

• Be creative: If salary is fixed, consider flexibility on working pattern, early review, or a targeted development budget.

• Respond quickly: A delayed answer risks losing the candidate or allowing their momentum to wane.

If the candidate receives a counter-offer from their current employer...

• Recognise the reality: Counter-offers may solve an immediate financial issue — but often they don’t address the reasons someone wants to leave (career progression, culture or challenge).

• Ask, don’t pressure: Invite the candidate to discuss the counter-offer in confidence. Offer to clarify how your role aligns with their long-term goals.

• Decide your position: If the candidate accepts their counter-offer, consider whether to make a revised offer. If you do, ensure it’s sustainable and defensible versus internal peers.

Practical negotiation tips -

• Start with a strong initial offer rather than a lowball. Firms that open with reasonable packages conserve time and build goodwill.

• Use clear deadlines for acceptance to avoid prolonged uncertainty.

• Document changes to offers in writing rather than relying on oral agreements.

• Avoid emotional bargaining. Keep negotiation factual and respectful.

• Train hiring managers to conduct offers and negotiations consistently — inconsistent behaviour harms employer reputation.

Sample wording snippets -

• Offer opening: “We are pleased to offer you the position of [Job Title] reporting to [Manager]. This letter summarises the key terms of employment.”

• Salary paragraph: “Your starting salary will be £[amount] per annum, payable monthly in arrears.” (adapt salary phrasing to your preferred currency/format)

• Acceptance deadline: “Please confirm acceptance by [date]. If you need longer, contact [name] to discuss.”

• Responding to a counter-offer: “We understand the position you’re in and are happy to discuss aspects of the offer. Before making any changes, we’ll need to ensure internal fairness and budget alignment.”

Common pitfalls to avoid -

• Over-promising on career progression without clear pathways.

• Ignoring internal equity when stretching offers for single hires — this breeds resentment.

• Allowing a counter-offer war with the candidate’s current employer; this rarely yields long-term loyalty.

• Sluggish responses — delays communicate a lack of priority and invite candidate drop-off.

Conclusion:

Offer design is both an art and a discipline. A concise, transparent package framed around total reward creates trust and accelerates acceptance. When counter-offers appear, treat them as moments for dialogue rather than conflict: understand motivations, act promptly and preserve fairness across your organisation. When done well, thoughtful offer strategy reduces churn, protects employer reputation and helps secure the right hire for the long term.

If you review one thing in your hiring process today, make it the clarity and timeliness of your offer — it pays dividends.