Insight Blog

When some companies hear “negotiation” in the hiring process, they immediately think money. As in how much is this candidate currently making, and how much will I have to pay them to join my team?

But hiring is a strategic process that involves more than dollars and cents. There are a number of important stages and crucial variables to consider along the way, and failure to do so can result in problematic salary negotiations. Our recruiters consult with clients throughout the search process (including perfecting position descriptions, interview coaching, and negotiating compensation packages), alerting them to all of the critical factors and helping them focus on selling their opportunity to a candidate.

In our experience, so much of what happens at the negotiating table begins long before the offer is made. When preparing to enter negotiations with a candidate, the most basic rule of thumb to remember is to make sure everything is in alignment before putting an offer on the table. It is key to understand what the company is looking for, what the candidate’s parameters are, and what kind of offer it will take to satisfy both parties. Here are just a few factors to consider before making an offer:

• What are the candidate’s key motivating factors?  Identify a potential candidate’s key motivations, technical capabilities, and career goals to assess whether they are the right fit for a company’s culture.

• If relocation is necessary, is the candidate willing, and what will it take to make that happen?  Some candidates do not fully consider what is involved in a relocation before an offer is made, and how that decision may affect their personal lives. There are a number of ways employers can enhance an offer to make a relocation more comfortable for the right candidate.

• What is the candidate’s current full compensation package?  It’s important to keep in mind that a candidate’s offer should not be based solely upon what they are currently making. Employers should remain focused on the value of individual candidates, and the importance of the role to their companies.

• In terms of compensation, what areas are flexible, and what areas are firm?  Entering a negotiation armed with this knowledge can save time and help structure a favorable offer.

• Are there other incentives beyond salary that might entice this candidate to accept?  Not all candidates switch jobs to make more money, but when the hiring company has reached its limit on salary, providing equity, bonuses, and tuition reimbursement can help make an offer more attractive.

Executive search is a personal business, and finding a mutually agreeable solution in a job offer negotiation is not always straightforward. There are many variables along the way, and people can be unpredictable; things can occasionally go wrong in the eleventh hour. But gathering all the pertinent information and understanding a company’s needs and goals ahead of time will help bypass plenty of stumbling blocks before they arise, and encourage a successful placement.