Finding someone’s resume in a database or on LinkedIn only represents a small fraction of what a great recruiting firm is paid to accomplish. While many companies look at recruiters as a one dimensional source of paper, the top recruiting firms in the nation are also great talent evaluators, compensation negotiators and counter offer experts. We are going to talk about the touchy compensation issues in this article.
So we deal with this every week and if you’re hiring often you do as well. Your in-house recruiter or outside recruiting firm sends you a candidate, they note their salary range and if you like them, you bring them in for an interview. After the first interview, you choose to do a second and when your in-house recruiter or outside recruiting firm calls the candidate to book it, all of a sudden they went from needing 95k + 10% bonus to needing 120k + 15% bonus otherwise they don’t want to move forward. (this also happens later in the process when an offer is to be made)
Ok, now you’re upset at your in-house recruiter or outside recruiting firm because you think they didn’t do their homework or they are fudging the numbers. Once you realize this happens way too often for either of those mistakes to be happening regularly, you want to learn the WHY behind these debacles.
We will break it down to tell you WHY and also make suggestions on how to mitigate it from happening so often.
1. The candidate walked into your company and the hiring team said things like, “when can you start” or, “you’re the best candidate we have met so far”. You basically just told the candidate you’re willing to give them a blank check when its offer time. How to avoid this: You have to walk the fine line of showing them you’re interested as top candidates want to feel wanted but you cannot show your cards either. Giving the candidate any idea they are the only and or best one for this position only begs for them to raise their price.
2. You don’t want to hear this, but the candidate wasn’t sold on your company either because of the vibe, looks of the place, lack of participation from people that should have been in the interview, your product or service or many other things they discover once being on site. They may still be interested but for them to work there or leave their current position for your company, they want more reward for more risk. How to avoid this: As recruiters we have to SELL your company, and sell it hard to top candidates, you must do the same. You also need to make sure what you’re showing \ telling the candidate makes them feel comfortable with your business unless they know it’s a turnaround situation. If you tell the candidate the CFO, CEO, COO or other executives will be in the meeting, make sure they show up and act interested otherwise the candidate feels insulted.
3. The candidate is interviewing elsewhere (always assume this anyway) and they have the rational that they can ask you for more money and if you pull the offer oh well, they have other options. How to Avoid this: This one is simple, act fast! Far too much time goes on, between the time a candidate is found and an offer is made, companies often drag their feet and as the saying goes “more is lost from indecision than the wrong decision”. Interview fast, make a decision quick and make your offer strong! To top that off, don’t make offers on Fridays and when you do make an offer give the candidate 48 hours to make a decision, put their feet to the fire and MAKE them MAKE a decision.
If your company is having issues with the art of the deal when it comes to making a hire, read more about our Retained Executive Search Firm Services.