New Hire Negotiation: Getting the Talent You Want to Say "Yes!"

Introduction

In the ongoing war for talent, the way recruitment is managed has a significant impact on a company's potential to attract high calibre employees. Many companies lose good candidates during the recruitment process because simple mistakes are made. And ironically most of these mistakes are made in the early part of the recruitment process; research shows that the number one reason why job offers are rejected remains how candidates are treated during screening and selection.[1] Therefore, to be successful an 'offer process' must be created that builds a compelling case for the candidate and clearly reinforces why they should accept this role above all others.

Reviewing the Current Offer Process

The first step in building a compelling offer process is to understand why job offers are currently being both rejected and accepted. So start by asking most recent hires three things:

a) What prompted them to accept the offer;
b) What 'almost' made them reject it.
c) What worked well in the offer process for competing companies?

• the offer was not compelling;
  
• the offer was delivered in an unconvincing or impersonal manner;
  
• there were one or more 'deal breakers' (i.e. potential negatives in the new role that the candidate was already experiencing in their current role);
  
• the content and format of the offer letter (often too long and legally complex, or leaving out key benefits promised during interview stage);
  
• an over-focus on money (as much as 85% of the decision is non-monetary);
  
• or the salary offered was a pay cut, or below the level of other competing offers.

1. Identify and address key decision-making factors.
Jobseekers view the application process as a purchase decision and often follow a process very similar to any other major 'buy' (e.g. car, home). Treating the process as a sales challenge means the candidate is more likely to hear a persuasive offer. As much as half the interview should be spent selling the offer - so only those with the best sales skills should be present.

Assuming the candidate is competent and their personality 'fits' the company environment, try to discern all of the candidate's other influencing factors. This can be done in a variety of ways: ask them to describe their dream job, why they left their last two roles, or give them a list and ask them to rank the criteria on it from most to least important.

Also, ask what other offers they've been made to gain an understanding of what the competition is offering. By understanding what's important to the candidate a more tailored and relevant offer can be made and will therefore positively influence the job offer stage.

2. Include non-financial benefits wherever possible and appropriate.
Effective non-monetary offers focus on meeting the job acceptance criteria of each individual candidate. There are three key non-monetary areas that can have a large impact on the attractiveness and acceptance (improving acceptance rates by up to 25%) of any job offer:[3]

A. The Direct Report - most people don't quit jobs, they quit their bosses. 75% to 85% of the factors that affect job satisfaction are controlled by a candidate's manager. Unless the candidate is clear that you understand their preferred management style, value open communication, openly reward and recognise efforts and hold regular meetings for support and feedback, don't expect them to be attracted to the job offer.

B. Flexibility - choice of schedule or team, working from home, job-share, study leave, self-management, or picking their own job title are all creative solutions that can add to a candidate's desire to accept a role.

C. Development Opportunities - opportunities to work on challenging projects with cutting edge technology is especially important in IT. If candidates can do what they are good at most of the time while being stretched, that is often very important. Throw in medium-term self-development plans, the latest hardware and software, travel opportunities (more or less, depending on individual preference) and greater security or stability and the offer again looks better than the standard packages competitors are offering.

Other non-monetary influences can include the appointment of a respected mentor, opportunities for internal exposure and public recognition, and relocation allowances - all of which can help get the candidate over the line.

3. Paint a clear progression path.
The communication of a clear and achievable progression path is typically a very important factor in the employment decision of any high achiever. Demonstrate, by using concrete examples of previous hires, how high achieving employees have progressed rapidly through the ranks. Provide candidates with a projection of where they might reasonably expect to be in the company in two to three years if things go well.

4. Quantify What's On Offer.
It is easy to make claims about what may happen to the candidate, or what benefits they may receive, but high achievers will be looking for concrete examples to quantify claims made. For example, using subjective terms to describe the benefits such as 'work/life balance'" or 'growth opportunities' may fall on death ears. Instead be more specific; quantify each claim, show how frequently they occur and cite specific real-life examples (or stories).

5. Involve the candidate's 'Circle of influence'.
The second greatest reason why people do not accept an offer is that their 'circle of influence' told them not to. Just as candidates must be sold, their influencers must be sold too. For example, candidates will often speak with referees after you have made contact to get their feedback. Leaving a strong, positive impression in the mind of an influencer about your company and offer carries great weight.

6. Seek agreement at every stage. [4]
As a candidate advances through the interview process, get their agreement on aspects of the offer at every step. This way, closing is a natural progression throughout the interview process - not just at the end when you have less leverage.

7. Align the pace of the offer to the candidate's level of urgency.
Pressuring candidates into quick decisions is a sure-fire recipe to frighten away good candidates. A job change requires thought and is often considered a big decision. Don't push too hard. Let candidates absorb the opportunity at their own speed. At the same time, it is important not to delay offers once a decision has been made. Make verbal offers quickly and follow up with a written letter right away. Remember, the top 10% of candidates will typically be gone within 10 days, so minimise any delays.

8. Get top-level involvement.
Arrange for the CEO, a senior manager or future team member the candidate has not met to contact them personally and communicate their enthusiasm for the candidate's application and interest. In doing this they are communicating to the candidate, "You matter to our organisation. Join us, and let's succeed together."

9. Be well versed in overcoming common objections.
Skill in overcoming objections should not be confined solely to the sales force. Here are a few typical objections a hiring manager may receive, and suggested approaches to help overcome them: [4]

a) What are the promotional opportunities? Describe a clear and compelling career path that is linked closely to performance and future business opportunities. Reinforce that other people in the organisation that entered in a similar level position have gone on to rapidly progress through the organisation. This is also an opportune time to provide details of any cross-department training opportunities and 'hire from within' hiring policies.

b) Not enough money. Switch the focus from money to opportunities. Whilst not misleading about monetary benefits, this is the time to focus on the candidate's non-monetary 'hot buttons' identified at the beginning of the recruitment process. These could be better growth opportunities, greater challenge, or better training.

c) The long-term opportunity doesn't seem strong enough. Too much focus on the direction of the role and not enough attention on the direction of the company can be a mistake. The candidate needs to believe that s/he is coming into a strong organisation with exciting growth plans. An effective strategy to help reinforce this point is to ask a Senior Manager to give the candidate a high level overview of the company's stretch goals and then show how the role directly impacts the achievement of those plans.

d) The job isn't challenging enough. Identify what would make the role more challenging and, if appropriate, tailor the role to suit. This does not have to mean offering a higher level job title or more direct reports - the delegation of special projects, for example, works equally well. Focus on what needs to get done and the job's overall importance and review and/or add performance targets as required.

10. Build a compelling employment brand.

Does your organisation appear in the annual 'top places to work' lists? Does it have clear strategies in place to build a compelling and engaging work environment? Convincing high achieving candidates to accept your offer is as much about marketing as it is about selling. You need to create a 'buzz' around your company to help position it as a place that people want to work at. A focus on employment branding will have a long term payoff as high achievers are 'warmed' to the company well before a formal job offer is made.

This article was licenced by SMF Recruitment for the SMF Recruitment client newsletter.
Written by Nathanael Small and Edited by Paul Quinn, Quinntessential Marketing Consulting Pty Ltd.

Subscriptions

Please feel free to forward this listing on to other people in your company or in the wider industry who you believe may benefit.

To join our newsletter mailing list, e-mail subscribe@smfrecruitment.com.au with "Subscribe to client newsletter" in the Subject line.

If you do not wish to receive periodic free articles from SMF Recruitment, you can simply unsubscribe by e-mailing unsubscribe@smfrecruitment.com.au with "Un-subscribe" in the Subject line. We will process your request immediately.

Disclaimer

The views and opinions expressed in this document are those of the author and do not necessarily reflect the view of SMF Recruitment Pty Ltd. This information is a general summary of the subject matter and should not be relied upon. You should not use this information as the sole basis for decisions or in place of professional advice.

Article References:

1. How To Improve Your Candidate Offers
   http://ourworld.compuserve.com/homepages/gately/pp15s180.htm
   
   
2. Why Candidates Reject Offers (and how to put a stop to it)
   http://ourworld.compuserve.com/homepages/gately/pp15s179.htm
   
   
3. Making great offers without much money: non-monetary offers:
   http://ourworld.compuserve.com/homepages/gately/pp15s153.htm
   
   
4. Negotiating 101: Getting to Yes
   http://www.erexchange.com/articles/printer.asp?d=H&CID={8635A38A-7A6E-11D4-82ED-00105A12D660}