Making Job Offers - Navigating the Minefield
Have you ever spent weeks or months recruiting a great candidate, only to have everything "blow up" at the offer stage? Below are a few tips to help manage this fragile part of the hiring process and increase chances of acceptance.
KEEP YOUR INTERVIEW PROCESS MOVING
Time kills all deals. Waiting causes candidates to lose enthusiasm and feel negatively toward your offer. And because they kept interviewing, competition will drive up their salary requirements.
UNCOVER CANDIDATE MOTIVATION
Your candidate’s motive for change should involve more than money. Otherwise, they’ll accept a counter offer at their current employer, or leave you for more money.
ASK FOR CURRENT COMPENSATION UPFRONT
Asking for a candidate’s current compensation at the very beginning is vital, but it’s not always easy. With bad interview advice circulating on social media, candidates are resistant to revealing compensation.
If you start the interview by asking their reasons for leaving and their ending compensation for each job on the resume, they’ll likely provide current compensation. If not, you can make a reasonable guess by adding 10 percent to their ending salary at the previous job and the typical (3-4 percent annual increases) for each year at the current employer.
GAIN VERBAL AGREEMENT FIRST
Always discuss your offer with the candidate, before sending an offer letter. This reduces the risk a candidate will use it to negotiate a counter offer or higher offer with another company. And you’ll be able to confirm their interest, hear their reaction, and get verbal acceptance, before sending a letter.
MAKE A REASONABLE OFFER
The average base pay increase for someone to change employers is around 10 to 15 percent, and for those in high demand, it could be 20 percent or higher. If your offer is less than the low end of the range, acceptance is not likely. Be sure to confirm current compensation again by email, before any offer discussion, to avoid misunderstanding and improve odds of accuracy.
Originally published in Builders Blueprint, a publication of the Builders Association. Reprinted with permission.
Associated General Contractors of America