Category Archives: Real Estate Financial Services

Better Interviewing…Better Results

Most companies today are looking for a hiring edge. The spring competition for top talent in the land title insurance, settlement services and appraisal space is heating up fast and mastering a smooth and efficient interview process today, may help lead to better long term hiring results for your organization. To that end, we have outlined four simple tips + a bonus that you can use today to get the most out of each new interview.

1. You have two objectives in the first interview. First, at the most basic level, you must verify the candidate’s credentials and assess their skillset. If the position calls for concrete qualifications, don’t be afraid to ask the candidate to elaborate on specific examples rather than relying on easily fudged yes or no answers. Learn as much as possible about the candidate, assess their full skillset. Unfortunately, it can become easy to fixate on only the surface level, thereby taking a shallow dive into only that part of the candidate’s depth of experience.

Next, the first interview is really the best time to begin developing a comprehensive feel for the candidate’s personality or culture fit with your group. To the extent that it is possible, verifying cultural fit is arguably one of the most important pre-hire items to understand. You must determine whether or not a culture fit exists between the candidate and your organization or within a smaller team subset. If they do not fit your environment…don’t hire them! It may be a short relationship and turnover can hit your bottom line hard. According to a study by the Center for American Progress, the average cost to replace an employee is roughly 20 percent of their annual salary!

2. Allow the candidate to verify position and cultural fit from his or her perspective.  When it comes to recruiting talent, it is imperative to demonstrate your organization’s value and how you can help align candidate and organizational goals. To do this, you must ask pointed questions to understand why the conversation is happening in the first place. The majority of people take an “if it’s not broken, don’t fix it” approach to their professional lives. Whether it is a change in culture, a shift in responsibilities, or the desire to secure a larger role…understanding the candidate’s motivation to look for opportunity outside of their current organization is vital to discovering if your group is the right environment for them.

Frankly, this is your time to shine. If the candidate has the technical ability, they seem to fit your culture and they have legitimate reasons to pursue a new opportunity, be sure to highlight what you bring to the table and how it may benefit the candidate to join your team. An easily overlooked aspect of the interviewing process is ensuring that the candidate understands that your group can deliver what they want. Often, the very best candidates are interviewing you as much, or more so, than you are interviewing them! Therefore, consider tailoring your selling points to the individual candidate. Do you have a promotion they want? Can you compensate them commensurately relative to their value? Do you provide a remote program or flexible schedule to accommodate personal needs? Convey and emphasize your group’s strengths that may address these points! Help paint the picture of what the symbiotic relationship will look like moving forward and help the candidate see why joining you may be the best move for them.

3. Don’t talk about the Benjamins! It is imperative that you first establish your group’s value and also allow the candidate to establish their value. Getting to the money conversation too quickly can polarize both parties and kill an otherwise good deal. If the candidate does bring up money on the first meeting (BTW, this is probably a bad sign), it is best to let them know that you appreciate the question and would be happy to get into that at the next meeting. This strategy will ultimately put you in a better position to negotiate and most importantly, will allow you and the candidate to focus on verifying opportunity and culture fit. Once money gets injected into the conversation, this is very difficult to accomplish. AFTER it looks like both parties want to do business, then you may tactfully engage in the money conversation at the proper pace.

4. Be Clear about the Next Steps. Toward the end of the conversation, it is best to clearly communicate anticipated next steps and be explicit about what you will do and what you expect the candidate to do. If you are not clear on the next steps or need to think about the best strategy in terms of proceeding, it is best to share with the candidate that you would like to let the conversation settle in and that you will be in touch ASAP. We often hear from the candidate pool that some employers are not great about following up and letting them know what is happening. It is more than understandable that hiring decisions often take some time to sort themselves out. That said, be sure to set your candidates’ expectations with an anticipated time frame and be sure to follow up and close the loop if you are going in a different direction. Ultimately, this will create a better candidate experience and help create and maintain a healthy organizational perception with potential future recruits.

Bonus Tip – Keep an open mind and an eye to the future! We can think of numerous occasions when our clients spoke with a candidate that may not have exactly fit the role at hand only to deem that candidate a great fit for another role or developed a whole new opportunity specific to them. If someone comes to the table with a skillset that might be better suited on another part of your team, you may have stumbled upon proverbial gold. Essentially, you can redirect talent as necessary for additional hires that will ultimately save you future interviewing time and energy, thereby mitigating opportunity cost from an otherwise vacant role.

In closing, following these simple tips can help provide bedrock on which to structure a smooth and efficient interview process. You may certainly build upon the framework we discussed by adding your own organizational touch and style. As you know, the competition to find and land good candidates is intense in the title insurance and appraisal space. The initial interview creates a valuable first impression and you know what they say about those!

Should you have any questions, please feel free to visit our website www.andersonbiro.com and one of our team members will be happy to hear your thoughts.

Spring Forward or Fall Back!

You may be familiar with the old adage, “I’ll do it my way, it’s the way I’ve always done it!” Likely, you are also familiar with the sometimes-negative connotation that approach conjures. For many, when faced with a new or persistent challenge, doing it the “old” way is the default way. In business, sticking to only the status quo way of thinking can sometimes raise questions about a company’s level of innovation, adaptability, and/or its potentially stagnant culture.

On the plus side, sticking to the status quo is also easy…and comfortable! However, as a default mode of operating, some organizations truly want to do more than is required to simply exist. They are essentially innovators. These groups set the curve and force others to adapt to their methods and their transformative ways. Frankly, this mindset is of the utmost importance for your recruiting strategy to help maintain a competitive advantage in the marketplace. Discussed briefly below are a few trends and strategies we are seeing innovators employ in the real world.

Remote/Virtual Offices
Adding Remote capabilities can be a major selling point for some candidates. Even with occasional travel to the office, a remote setup (amongst many other positives) can help alleviate punishing commutes for an improved quality of life. More importantly for you, by opening up the remote possibility, you are drastically expanding your potential candidate pool from which to recruit. This is especially important for regional or national Title, Appraisal and Settlement firms that enjoy access to a higher percentage of quality candidates. Of course, a face-to-face office setting is not easily replicated. Nonetheless, with applications like, Google Meet, GoToMeeting, FaceTime etc., along with the good old-fashioned conference call, there are multiple ways to stay in close communication with your remote team. Is there a cookie-cutter template that works for everyone and every company? Not in the slightest. And working from home is certainly not for everyone. That said, more companies are making the switch to a partially remote based team to capitalize on key talent that may not otherwise be available without remote capabilities. There are many examples of our clients looking to us for help in landing established talent in other parts of the country. Trust us…assuming the right systems are in place to facilitate and monitor a remote program, the talent is out there.

Focusing on Wants and Needs
From a cultural perspective, many companies have a recruiting mindset that boils down to “we’re the best around, the candidate should want to work with us!” And this may be true. Your company culture may be great, though likely not enough alone to move the recruiting needle. These days, it seems that most everyone puts an emphasis on culture. Arguably, building a strong one is now considered the norm, not the exception. When inviting a potential recruit to make a move, listen to what is truly important to them. Short of one being independently wealthy, most folks ultimately work to provide for themselves and their families. The factors that most directly correlate typically tend to be the very basics: compensation, healthcare, work/life flexibility and PTO. Fringe benefits are nice…though just that, fringe! Sure, that gaming table and health club membership may be neat things to reinforce your ‘work hard, play hard’ culture. Who doesn’t enjoy a good game of foosball? Despite this, people aren’t necessarily fighting rush hour and coming to the office to play Ping-Pong! They are most likely showing up to get a job done in an environment where they are adequately paid, respected, trusted, and challenged.

In principal, good recruiting can start in your own conference room. Maybe pull aside a mix of established and newer team members and have a chat. If you listen to what’s important to your current team and then target new recruits accordingly, you may be better suited to stay competitive from a recruiting standpoint. If you want the best talent, it may mean reevaluating your organization’s overall compensation structure. If that means instituting a fair and employee friendly benefits package, creating a flexible working schedule/location, or installing a stellar training program, so be it!

Training and Coaching
So, what about that training program? In the Title Insurance, Settlement Services and Appraisal space, establishing a strong training program cannot be overemphasized. To stay competitive, there really does need to be a nice mix of recruiting experienced talent and organic building. To grow organically, you must train new blood. You might say, “what if we pay to train them and they leave?” Followed of course with the common response of “what if you don’t train, and they stay?” Bringing new, competent talent into the industry is imperative to keep the train (see what we did there?) chugging down the tracks. Whether it is entry level or coaching up a current team member for a bigger role, it is imperative to continually teach and mentor the next generation. Millennials and Centennials are here to stay. Despite their bad rap, most of them are actually pretty darn talented. Proportionally, these generations will inherently serve in key roles with your group so you might as well train them the right way! Have open conversations with your leadership team on how your training program can be improved. Most people have a natural drive to better themselves, and empowering your current team to grow can actually help retain and attract top talent.

In summary, from a recruiting perspective, it can be a healthy exercise to at least consider looking to adaptation and innovation to help gain an upper hand on your competition. From tweaking traditional methodology to installing a totally new philosophy, it is the innovators that tend to be differentiators. And when you’re trying to attract top talent to join your team, don’t be afraid to be the one setting the pace.

Should you have any questions, please feel free to visit our website www.andersonbiro.com and one of our team members will be happy to hear your thoughts.

Maslow Helps Us Shine a Flashlight on Your Team’s Motivation

Happy New Year! Yet again another spin around the sun completed!  We humans have long honored this annual celestial journey through space. It’s become a tradition for many to look for a starting line for tackling a New Year’s task or initiative. Frankly, there’s no time like the fresh turn of the calendar page to strive for change and personal adaptation. To help accommodate, we may utilize various psychological theories to assign meaning and find new ways to create efficiencies, communicate more effectively, sell more homes, close more files, appraise more properties, etc.

When it comes to better understanding personal and personnel gains, we might turn to Abraham Maslow’s Hierarchy of Needs for a little extra guidance on how human psychology factors into one’s professional growth.

A psychology class presentation at Valdosta State University, cited from Educational Psychology Interactive, (Huitt, W. 2007) deals with Maslow’s theories and his work with the hierarchy on human motivation. As the study highlights, Maslow worked to show that humans have a psychological hierarchy of needs, and to achieve the next level, more basic needs must first be met in ascending order.

The five levels proposed by Maslow are:

1. Physiological: hunger, thirst, bodily comforts, etc.

2. Safety & Security: out of danger.

3. Belongingness and Love: affiliate with others, be accepted.

4. Esteem: to achieve, be competent, gain approval and recognition.

5. Self-Actualization: to know, understand, see beauty and realize one’s full potential.

As we evaluate the five levels through a career based lens, we realize that many of us have an intrinsic motivation to climb this hierarchy. Some of us naturally reach higher levels. Others may require some extra help from those that have already achieved.

The goal here (with an assist from Maslow), is to get you thinking how to best leverage human motivation to achieve the next levels of personal and organizational development.

Level one, Physiological, is needed for basic functioning and is, for the most part, a given for America’s professional workforce. Fortunately, most of our colleagues in the settlement services space are able to secure food, clothing and shelter. Given that, there is no need to focus here for this piece.

At level two, Safety and Security, an individual may ask; “am I in constant fear of losing my job despite adequate performance?…Will my company pay me for the work that I complete?” This again falls into the standard operating category for most folks. They are able to pay for basic necessities and hold a stable job…enough for some people.  However, an employee at this level is potentially disengaged. They might come in, punch the clock, do their work with a blank stare, void of connection with their job and their coworkers. A team stacked with those operating at this level is obviously suboptimal, and as a leader, you may use Maslow’s hierarchy here as a guide to help motivate your team to take the next step for their professional growth.  Maybe help them connect with coworkers and build meaningful work relationships to further engage and strengthen their relative perception of safety and security. It may be beneficial to build these bonds in a nontraditional setting. If you address the exercise of establishing deeper connections only in a work setting, the team may not buy into the process. Instead, you might attempt to facilitate a more personal and social experience without the typical work dynamics involved, so that relationships can form more organically.

Speaking of connecting with others, this leads us into level three: Belongingness and Love. In the title insurance and appraisal workforce, this is where you will probably find the majority of gainfully employed and seemingly happy individuals. They enjoy relative security in their position, likely produce adequate results and feel a true sense of connection with their coworkers and work environment. They participate in teambuilding activities, actively engage with superiors and direct reports, and willingly socialize with teammates outside of the office environment.

To help foster level three and above, it is advisable that leaders strive to build a culture that welcomes and encourages a meaningful connection between team members beyond the necessary minimum for business function and productivity. These bonds provide a greater sense of meaning and can help someone change their way of thinking of their Monday through Friday to the glaringly disparate mentality of “I have to go to work today” to “I get to go to work today”. Establishing and reinforcing the latter comes with numerous organizational benefits such as increased productivity, higher retention/lower turnover rates, and therefore a better chance at sustained profitability.

Level four, Esteem, is where you will most often find your real movers and shakers in the financial services sector. The top producers. The “Rock Stars”. These are the folks that are adept at gaining recognition and perfecting their respective craft. They take pride in their work, consistently achieve goals, and essentially make the first few levels an afterthought. Other people want to connect and establish relationships with these types. Their roles are secure because, barring unforeseen circumstances, no employer in their right mind would risk losing them. To the benefit of themselves and also your organization, their time and energy is focused on being the best version of themselves. Getting to level four in the professional world may take extra individual effort and also strong support from your organization and leadership team. That said, if you like winning, it is advisable to develop, recruit and populate your team with the highest percentage as possible operating at this level.

The Esteem level is perhaps the perceived goal for most of the working class.  However, the rarely achieved fifth level: Self-Actualization, would be a great accomplishment for you and your team in most any circumstance. Self-actualized people are described as “being problem focused, incorporating an ongoing freshness of appreciation of life, a concern of personal growth, and the ability to have peak experiences” (Huitt, W. 2007).  To some, this definition may come off as overly spiritual or as a description of the Dali Llama’s traits….rarified air.  However, these people do exist and often hold key leadership roles in their respective landscape. They tend to have an answer for every situation. Their demeanor is almost always calm, cool and collected. They are typically also looking to help others achieve their greatest potential, whether that means reaching the level of Esteem or Self-Actualization. They are the tide that raises all sinking ships. The challenge is that there is no magic bean that allows a human to grow to a self-actualized state. It is a combination of a multitude of characteristics that allow you to realize your full potential. You must accurately assess who you truly are without outside influence. Focus on solving problems for the benefit of others and not personal gain. Find enjoyment by seeing routine tasks and experiences through new perspectives to appreciate the world around you. Utilize your personal experiences in these exercises to continue to develop and build upon your current self. Tap into the newly found creative perspectives to further impact those around you.

To summarize, people at the lowest levels are seeking information to help them cope with their life position and to help meet their basic needs and securities for a happy life. By helping these folks reach the next level, this is probably where you, as a more developed leader, can have the biggest overall effect on your organization. People at level three and four are looking for more enlightening information to continue to build meaningful relationships, and more empowering information to continue developing. At this level, you can really take out the scalpel and employ a highly tailored, individually focused approach. For those of you that have reached level five, congratulations!

Huitt, W. (2007). Maslow’s hierarchy of needs. Educational Psychology Interactive. Valdosta, GA: Valdosta State University.

Should you have any questions, please feel free to visit our website www.andersonbiro.com and one of our team members will be happy to hear your thoughts.

The Book of Business Sale!

It’s officially the holiday season in the Settlement Services space. An exciting time of year for all! It’s also a time to evaluate the performance of your team and begin budgeting for 2019. Whether or not your goals this year were achieved, one thing is almost always certain, you would probably like to grow your market share next year!

Therefore, you might ask yourself, “how do I efficiently enhance my top line?” Logically, you might then consider recruiting someone to your sales or leadership team with a “book of business” in tow. This can be a great way to make an impact. Realistically, the challenge of immediately transferring a book of business, though far from impossible, is perhaps more difficult than it once was.

There was a time when the sales or operations rep was the point of contact for many needs in a closing or appraisal transaction. The customer didn’t know or maybe didn’t even need to know who else made the behind the scenes magic happen. The customer only knew that if they called their contact with an issue, said contact would take care of it…and that was the end of it! Technology has changed the game. Tools like email, mobile apps, modern and efficient workflow processes, 24/7/365 connectivity and vendor system integrations have drastically altered many customer relationships. But…someone still needs to develop and foster new customer partnerships. When looking to add or upgrade key revenue generating or leadership talent, focusing only on landing a book of business is easy to do. It can also be a costly mistake.

So, what do you do about this on the recruiting front when shopping for sales or leadership talent this holiday season?

Maybe instead of focusing on how much initial impact a new recruit can have on your organization from a pure revenue generating perspective, you should also think of the long-term impact of the individual’s fit with your organization. The key is to identify and validate sales and leadership aptitude all while confirming a positive culture fit. Verify their industry knowledgebase and market presence. Look for past successes and confirm, to the extent possible, that you will be fine sharing some eggnog together at the company holiday party.

In most cases, if the recruit has a nice, consistent career history, and an established track record of “winning” in previous positions, they have the foundation to continue that momentum. When armed with proper tools, they will likely recreate their prior success in your environment, perhaps even more so. Just don’t count on that book of business to follow right away. What you can count on is that you took strategic steps to welcome an impact player to your operation and achieve your newly set goals.

Happy candidate shopping during this holiday season. Should you have any questions, please feel free to visit our website www.andersonbiro.com and one of our team members will be happy to hear your thoughts.

Two More Words: Follow Up! Fall Conference Recruiting Guide – Part Two

Okay, you’re back from the big conference. The business cards have been slung, the hands of been shook, the babies have been kissed. Now What? You might consider fostering your investment of time and energy by building upon the recruiting groundwork laid.

Targeted follow up can really make a difference when interacting with prospective recruits. You can start by simply sending a handwritten note or making a post conference phone call to a new or existing connection. These time-tested methods are a great way to stay in front of recruits. Maybe even set a monthly or quarterly calendar reminder to reach back out and say hello. In fact, if you went beyond the surface level conversations as we suggested in Part One, you can build upon what you’ve learned by referencing your new insights which will strengthen the candidate relationship.

For a slightly less traditional approach, you might also consider getting in touch on Social Media Outlets, i.e. following the recruit on LinkedIn, Twitter, Facebook, Instagram, etc. These resources are a nice venue to help stay abreast of key life events and happenings that may be of interest to your new connection. Maybe they will even follow you back!

Most importantly to note in your post conference activity is that Recruiting is an Ongoing Effort. Think of recruiting in terms of long-term strategy with relatively short bursts of immediate action in times of need. The market insight and relationships you may have gained from the fall conference season should hopefully produce results in the winter months. If you need help…feel free to give us a call.

Should you have any questions, please feel free to visit our website www.andersonbiro.com and one of our team members would be happy to hear your thoughts.

Two Words: Quality Time. A Quick Fall Conference Season Recruiting Guide – Part One

If you described your typical conference experience, we’d be willing to wager that some of your key words might include: fun, food, refreshments, speakers, booths and late nights. These connotations are not groundbreaking, nor is the novel concept of putting on your recruiting hat at industry conventions.  Maybe we can suggest looking at conference recruiting with a specific concept in mind…. spending Quality Time with your recruits.

On the surface, recruiting at these conferences can sometimes seem trivial. You know, show face, shake hands, appease those up the corporate ladder. Do not fall victim to this mindset! Use these conferences as a rare opportunity to take advantage of quality time with your clients, vendors, peers, AND potential recruiting targets…. all in one place!

Listed below are some possible focus items to help maximize your conference recruiting efforts.

What motivates them…After a drink and an appetizer, you need something else to talk about beyond the pleasantries of nice weather and the fine financial quarter your group is having.  Maybe consider engaging in deeper conversations with your boothmate. Pick up on non-verbal cues and dare to go beyond the surface to better connect with your recruit and learn their true motivations. Begin to understand their interests and hobbies. What do they do for fun? Do they like to play chess or checkers? Anything but work. This can be a differentiator later when your competitor does not truly understand the candidate’s motivational mindset.

Gain strategic insight…What are your competitors doing on the recruiting front and how can you better compete? Sometimes the best way to find out is to ask the person in front of you. How are other companies impacting the recruiting landscape? What can your group be doing better to attract the best industry talent? We are not suggesting you do anything that does not align with your company culture. We are suggesting understanding what you’re up against and adjusting your internal recruiting strategy accordingly.

Plant that seed…Capitalize on your face to face meetings to help set yourself apart. Ideally you can spend quality time together offsite or at least create one-on-one contact away from the fray.  Be authentic. Be mindful of personal and company branding. Build and project your group’s marketplace presence.  Help that potential recruit understand that your group is THE destination they should be considering when the time is right for a move.

Look for Part Two of this blog coming to an email near you in Mid-October… In the meantime, should you have any questions, please feel free to visit our website www.andersonbiro.com and one of our team members would be happy to hear your thoughts.

Anderson|Biro, LLC Launches Staffing Division in Ohio

Anderson|Biro, LLC, a Cleveland, Ohio based Executive Search firm serving the real estate financial services sector nationally, has added a Staffing division focused in Ohio.  The division will service clients that have a need for contract and temporary-to-permanent placements.

“We are excited to add this new service offering for our clients based here in Ohio.  As the labor market has tightened over the past few years, the need for contract placements has dramatically increased,” said Anderson|Biro Founding Partner, Eric Biro.  “Ohio will just be the start of the operation.  As time evolves, we will add additional states into the mix,” Biro said.

Co-founder, Ryan Anderson added, “Since our executive search business primarily operates at the mid to senior level, the objective here is to build out our staffing division to help enhance our total service offering for our loyal customer base.  We will also look at supporting adjacent industry verticals eventually opening up opportunities for clients and contacts within our executive search division.”

Got Feedback?

The title insurance industry is currently running on all cylinders as underwriters, agents and investment groups alike set record quarterly revenue figures in the space. When the industry is rockin’ and rollin’, especially with the national unemployment rate hovering around four percent, it can be difficult to find quality talent to sustain and continue hiring growth momentum.

There are times when talent does surface and maybe is just not the right fit for a specific need. Maybe that same individual could be a solution for a future role and it can be important to position your company to again have access to this talent. As you may know, it is important to properly let recruits “off the hook” if not selected for your opportunity.

Candidates often spend hours of their time with preparation, commutes, and using PTO to participate in said interviews. Taking five minutes to provide honest and constructive feedback to finalist candidates at the end of an interview lifecycle can be useful to help bring along the next generation of talent, from production level to C-suite.

We are all guilty of occasionally giving a formatted rejection response that may leave a candidate with a bad taste in their mouth.  Even worse, not getting back with the recruit at all, thereby leaving them hanging and wondering what happened when it all seemed so promising! Honest and constructive interview feedback provides a candidate the opportunity to understand specific weaknesses in their game, and the chance to work on areas that may need improvement.

Providing a candidate the opportunity to grow professionally through transparent rejection feedback can help build long term relationships, foster an organizational reputation of improvement and growth, all while creating a positive buzz about the transparency of your hiring culture.  Ultimately, this practice may help you attract quality talent today and in the future.

If you have any questions, please feel free to visit our website www.andersonbiro.com and one of our team members would be happy to hear your thoughts.

It’s the Busy Season…Are You Well Positioned for Future Personnel Needs?

It’s busy season in the Title World! Even with many areas facing limited housing inventory, people are still out buying and selling homes, and closings are happening at a rapid rate. Consequently, it’s easy to get caught up in your day to day business this time of year, and possibly place future personnel needs on the back burner. Unfortunately, this practice has the potential to be costly down the road.

According to TopResume.com, the three best times of year to find a new opportunity from a candidate’s perspective are right after New Year’s, the spring months, and early autumn. As you are well aware, the spring seasonal hiring wave is currently in full force, and we will soon move into the summer recruiting “lull”. However, this does not mean that a business should neglect building a candidate pipeline over the summer months.

Engaging qualified candidates during the summer months may be beneficial, as it can position your organization to make hiring decisions swiftly and get new team members up to speed while the competition is still out there looking for talent during seasonal moments of panic! In general, candidates will soon be looking ahead to the fall hiring season and reaching them early to begin building a relationship could prove to be beneficial in encouraging them to join your team.

In summary, building a recruiting strategy, especially while you are caught up in the busy season, can be daunting and time consuming. This is one of the areas where a specialized recruiting team like Anderson|Biro can help. We will work to understand the type of candidate and personality that you would like to identify and assist in building your talent pipeline. In this way you can maintain focus on the direct revenue driving activities during these busy months, all while resting assured that you will be appropriately positioned when it comes to the next prime candidate motivation season.

If you have any questions, please feel free to visit our website www.andersonbiro.com and one of our team members would be happy to hear your thoughts.

First Rule of Making a Counter Offer: Don’t.

Tell us if you’ve heard this one before: It’s Monday morning. You’ve prepared for the week and ready to start the day. However, this morning doesn’t go as planned. One of your key team members has come to you to tender their resignation. They’ve accepted an offer with another organization and have offered to stay for two weeks to help transition.

As you know, losing a key member of your team is rarely an easy situation to handle. Your gut reaction is likely to find a way to keep them around, most commonly by matching their new compensation or exceeding it. While the fresh sting of losing an important team member may hurt, you could end up hurting yourself even more in the long run if you decide to counter offer.

Below are three points that outline why a counter offer may result in more detriment than benefit.

• A counter offer is essentially a band-aid for the role. If they decide to stay, you now have a short-term solution to a long-term challenge. Compensation is, often times, a secondary motivation for seeking another opportunity. By giving them more money, you may convince them to stay a little while longer, but their core reasons for leaving may not be remedied. Not to mention, you may have set yourself up for bullet point two.

• A counter offer can be a gut punch to team morale. Think about the precedent set by giving a counter offer. Others in the organization have now seen firsthand that if they want a raise they can simply bring an offer letter to you and *voila*, an instant raise, whether it’s from you or the competition. Inadvertently, a counter offer may have just encouraged others to look to leave, or in a best-case scenario, only ask for the raise at their next performance review, potentially threatening your organization’s overall compensation structure.

• A counter offer often contradicts the concept of loyalty. Someone from your team has been hanging around with the competition looking for another opportunity, and when it is brought to your attention, you essentially reward them for it. This could be a bad look to the person leaving, as it was necessary for them to threaten to leave to potentially receive their full compensation value. Also, this may be perceived as a signal to the rest of the team that they may have to do the same to get what they want. This may be from a compensation, upward mobility, or schedule flexibility perspective. Either way, folks that are actually happy may get the idea that they are not being given full value for their efforts.

There are obviously exceptions and outliers for every situation. That said, it might make sense not to allow a band-aid for a departing employee set a precedent for others that loyalty means little. Instead of being reactive, consider being more proactive and have regular and open conversations with your team members about things that may be improved to encourage a collaborative and communicative environment. This way, hopefully the Counter Offer conversation won’t come up in the first place!

If you have any questions, please feel free to visit our website www.andersonbiro.com and one of our team members would be happy to hear your thoughts.