Counteroffer

Definition:

A counteroffer is a proposal made by an employee or union in response to a company’s offer or proposal. It is a revised offer that modifies the original proposal in some way, usually in an attempt to improve the terms of the deal.

Key Points:

• Counteroffer is a response to an offer: It is made in reaction to a company’s offer and aims to alter the terms of the deal.
• May include changes to original proposal: The counteroffer may include changes to the salary, benefits, or other terms of the original proposal.
• Negotiation strategy: Countering is a strategy used in negotiation to counter an offer and potentially reach a mutually acceptable agreement.
• May influence final outcome: The company’s decision on whether to accept or reject the counteroffer can significantly influence the final outcome of the negotiations.
• Can lead to a new agreement: If the company accepts the counteroffer, it can lead to a new agreement with the employee or union.

Examples:

• An employee receives an offer of employment but wants a higher salary. They make a counteroffer with a proposed higher salary.
• A union might make a counteroffer on behalf of its members, demanding additional benefits or improved working conditions.

Negotiation Tactics:

• Thorough preparation: Research the market data, company’s financial standing, and employee’s skills and experience.
• Clear objectives: Determine your desired outcome and be prepared to compromise within reason.
• Strong presentation: Present your counteroffer clearly and professionally, highlighting the benefits to the company.
• Flexibility: Be willing to negotiate and make adjustments to your counteroffer as needed.
• Patience: Negotiating can take time, so be patient and focus on reaching a mutually acceptable agreement.