The Job Negotiation Process - Tips To Closing the Deal

“Let us never negotiate out of fear. But let us never fear to negotiate.”

~ John F Kennedy

Negotiating a job offer can be a nerve-wracking experience. Naturally, you want to ensure you get the best deal for yourself, your candidate and your client. However, negotiating is not just about dollars and cents; there is more to it than that.

By finding an agreement that provides benefits and opportunities beyond compensation - and ensuring that all parties involved are happy with the terms of the deal - you can ensure lasting success!

Here are some insights for closing the deal and making your placement so that you get the best outcome for everyone involved.

Note: these insights are part of this serialisation of lessons shared in my best-selling book?How To Launch a Staffing Agency .

What Could Go Wrong in the Final Stages of the Hiring Process?

Even with all the boxes checked, there's still one daunting hurdle left to clear: the final stage of the hiring process. So how can you ensure it goes off without a hitch?

Although you may have a qualified candidate excited for the role, they may suddenly back out due to client budgeting concerns, or because another internal candidate has been introduced into the process... or for any number of other reasons.

The fact of the matter is that people often change their minds - and sometimes they were never truthful to begin with. To help reduce the chances of an offer being rejected or falling through, employ checks and balances throughout your process. And remember, a candidate is not legally obligated to accept any role.

Now, your client naturally has a different perspective and considerations. They'll likely have their top two candidates in mind when they are ready to make an offer. Hopefully, both candidates have been introduced through you.

Your role is to help your client generate a competitive offer that will secure their candidate of choice. In addition, this is another chance to show off your value and industry expertise.

Provide the client with the information needed to come up with a competitive offer for your potential candidate. Keep in mind that it is not your decision to make; all you can do is offer your expertise and, in due course, present the client's offer to the candidate in a professional manner.

To better understand this, let's reflect on an example...

Below are the conditions of your client's offer to John after his interview:?

Every Wednesday, your client can adjust John's hours from 9:00 am to 5:00 pm to 8:30 am to 4:30 pm. They cannot meet his current salary requirements as they don't feel he has the level of experience required for a $90K salary; however, they are willing to offer an $80K base salary plus a better commission plan. Benefits and three weeks’ vacation policy will remain unchanged. The client would like John to begin within four weeks so that they may ensure he is onboarded correctly.

Before presenting the offer to John, it’s your duty to negotiate on his behalf. By the time you present the offer to him, he needs to understand that you have advocated for him. If the client is unwilling to offer a higher base salary, identify other areas to exceed John's expectations.

How To Present The Offer To John

Once you've secured the best terms you can, it’s time to work with John so that he will accept the offer. When you present the offer to John, include all the details and arrange a time to speak with him. Remember, the base offer is not what he wanted, so if you're too casual about your interaction with him, you risk John disengaging or making an emotional or impulsive decision.

Instead, I would leave a compelling voice message for him to start the ball rolling. Remember, John may worry if you aren’t excited - sales is a transference of feelings. Depending on his state of mind, he might wonder if his current role is as bad as he initially thought.

I'd recommend you create a structure to present your offers. In this case, I would also take the revenue he has generated over the last year and calculate how much extra he could earn with the new commission plan.

When speaking to John about the client's offer, start by congratulating him and then add in one of his motivators (in this case, not the base salary!). I would start with the career growth and total compensation plan.

After John has had time to take in your words, follow up with something like this: “I understand that the salary isn't exactly what you wanted. However, I was able to get an increase in the vacation period. And since you have a young family, it's great news that these benefits will be available from day one.” Also, inform John he generated $X in revenue last year. Therefore, under this commission plan, he would take home $Y.

Understandably, John might be disappointed that he didn't get the base salary he wanted. However, emphasize to John that the client still gave him a pay rise on his overall package, and how much his total earnings stand to rise.?

Help your candidate crunch the numbers to see how much more income they would earn by making this decision. As salespeople, we want the deal closed as soon as possible. However, candidates for direct-hire positions may need time to consider their options or discuss it with a partner before committing.

Pro Tip:?Don’t become heavy-handed; don't try railroading your candidate into accepting the offer immediately. Even if they give you a hesitant yes, they may decline later or, worse yet, ghost you.

I recommend asking the candidate if there is any other information they need to help them make the decision (besides a written offer).?

Verbalize the offer first, and when they verbally agree, you can ask for a written offer to be formalized. Offers are often based on references and background checks (which may include examining criminal history, credit scores, and drug usage).

When requesting that your candidate provide references, let them know you will not contact their current employer until after their resignation.

Pro Tip:?Never advise your candidate to resign before references and background checks are complete; and your client has confirmed this in writing. If you are responsible for procuring the references, ask your client if there are any areas they’d like you to probe further during the call.

Q: How can you avoid having to restart the whole process?

A: By having a second candidate in the running. Most companies will usually shortlist their top two preferred candidates, and often there is only a marginal difference in experience, etc.

Coaching Tip: Make sure to be honest with your second choice candidate and ensure they comprehend why the other candidate is the client’s favourite. It's not fun being someone's second choice, but if it's the role they aspire to have, they will often wait it out. When presenting this offer to your second candidate, use extreme caution. Do not reveal anything about why their predecessor was rejected (this is classified information). In a scenario where both parties are aware of each other, the individual in question wouldn't want their circumstances made public (plus, you could be breaking the law).

Furthermore, don't ghost your candidates after the guarantee period is up. Instead, talk with them and ensure their post-placement experience is satisfactory so they'll refer other qualified individuals to you. Keep the lines of communication open.

I hope this newsletter has given you some good food for thought and helps you in your journey to become a successful recruitment entrepreneur. You’re welcome to message me here LinkedIn on or?book a call ?if I can help further.

P.S. For those of you with years of experience running a recruitment business behind you, please do chime in with your own observations in the comments. Hopefully, we can make these newsletter editions a rich source of insights for everyone trying to forge success in our wonderful industry. Thank you!