By Roy Notowitz
The TV show "Deal or No Deal" is a game of chance. Hiring is the real deal and shouldn't be left to chance. Getting top candidates to accept an offer requires market knowledge, proactive communication, and attention to detail.
A recent employer survey* ranked the top reasons why candidates rejected offers as:
1. Salary, bonus, and benefits package not competitive
2. Decided not to relocate
3. Competing offer from another company
Although salary, bonus, and benefits are listed as the number one reason, many candidates who are not truly interested in your opportunity in the first place will stick with the process anyway and ultimately say that your offer was "not competitive" as the reason that they are rejecting it. The reasons why a candidate might continue to the offer stage include: provoking a counter offer from their current company, convincing a spouse to uproot the family and move to a new location (see reason #2), or as leveraging your offer against another offer with a different company (see reason #3).
Here are some of the best ways to ensure that top candidates accept your offer:
1. Make sure the candidate is hooked
I have heard numerous stories of companies delaying a hiring process for months waiting for a candidate to fall in love and commit to an opportunity when they should have cut bait and moved on. It is incumbent upon the search consultant and the company to "hook" candidates with compelling reasons why the opportunity is unbeatable. However, an experienced search consultant will assess the candidate's level of interest from the start of the process and re-verify throughout the process. It is common for the level of interest and associated variables to change as new information becomes available and it is best to pull the plug before getting to the offer stage.
2. Understand the candidate's motivations
The best search consultants will quickly hone in on the candidate's true motivations right from the start by establishing trust and asking the right questions. Some examples include: listening carefully to the nuances of why the candidate is interested in making a move, evaluating the sense of urgency to leave, and understanding what they like and do not like about their current job. It is important to listen for reasons why they would be interested in the opportunity with your company specifically. If relocation is involved, why they would like to move to your area? Beware of candidates whose primary motivation is to move to your location as they may not really be interested in your opportunity. It is important to look for a good balance of motivations and that they remain consistent throughout the process.
3. Pin down salary expectations
What will it take to get the candidate to consider making a move? Test them on their bottom line. Candidates will respond if you ask the questions tactfully and in an effort to ensure that you can meet their needs with a competitive offer. Likewise, it is important for the candidate to determine whether the company can offer a salary in their ball park. It is best to communicate openly and to make sure not to over promise on the salary. In addition to base salary, some candidates place importance on benefits or, in other instances, the relocation package really matters. While some candidates may say that base salary is not as important, they can ultimately become dissatisfied with their base salary after a few months in the job if it is significantly lower than what they were making previously.
4. Watch out for salary creep
It is common for candidate salary expectations to creep up when they realize that a company is seriously interested. Reinforcing the salary range and re-assessing the level of interest in every conversation can help to mitigate unrealistic expectations from creeping up on you at the time of the offer. If you see signs of salary creep, you can test a candidate's level of interest by politely taking the opportunity away to see if they adjust their expectations back to the original salary level communicated. If they don't, then you should cut them loose or communicate the changes internally before moving forward with the candidate.
5. Maintain momentum in the offer stage
Once you know that you want to make an offer do not lose momentum. If you wait too long to make the offer, the candidate may perceive a lack of interest and can go into "self preservation" mode. This can result in loss of the emotional connection with high potential finalists convincing themselves that they did not want the opportunity in the first place. It is much harder to land candidates who lose their emotional connection to the opportunity.
6. Don't low-ball the offer
If you set the right expectations from the start and maintain consistency, then you can put your best foot forward and reduce the amount of negotiation needed to land the candidate. Low-balling a candidate immediately undermines credibility and does not reflect well on the organization. It can place doubts in the mind of the candidate and often derails the whole process.
At the end of the day, companies and candidates are part of a market economy. Scarcity of talent, employment brand reputation, cost of living, and lifestyle decisions all dictate what companies need to pay attention to in order to attract top talent. Recruiting is one of the least efficient and most costly processes in an organization, so getting top candidates to accept your offers can save your company time and money in the long run. Paying attention to all the details assures that getting top candidates to say "Deal" won't be left to chance.
*Generator Group Hiring Trends Survey, 2007.
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