Presenting the Complete
Employment Offer
The
basic employment offer has three components: start date,
title, and compensation.
The complete
employment offer has at least 20 options, and if the candidate
is relocating or is an executive, there are another 10. In this article, we’re
going to list and briefly describe these options and discuss
why presenting the entire opportunity is
important in a competitive talent market. Your company may not
have all of these components for every offer. Keep in mind I’m
not suggesting that you change or upgrade any piece of your
program, but instead simply provide your potential hire with
the greatest number of reasons to accept the offer that you’re
presenting.
The
importance of providing your complete offer
Ben
Franklin, well-known inventor, publisher, and statesman, had a
system for making decisions. He would draw a line
down the center of a page, listing the pros in one column and
the cons in the other.
Most of us know this as a “T Chart.” 250 years later, many
people still use this approach. We have found that
candidates weigh all of the items listed below when making a
decision, whether they actually talk about them during the
interview process or not. Because they are
thinking about these, you want them to know what your company
has to offer when comparing. Unknown items almost
always favor the status quo.
The
list
Because
different things are important to people, this list is in
alphabetical order in each section. Section One is for a
standard hire.
Section Two is for an executive hire or a hire that
involves relocation, regardless of whether you’re paying for
relocation expenses.
There may be other items to add to your list—feel free
to add them. The
following will get you off to a good start.
Section
One—the basics
Advancement/Personal Development
Opportunities
Consider
the prospective hire’s current situation. How is this career
move a step up for them, what will they learn, who can they
become by assuming these responsibilities, and what is the
career path from this role? No one likes to take a
new job, but everyone wants to advance in their career. Make this offer all
about them. Talk about how their
skill set or supervisory experience will be enhanced or how
success in this role will lead to a promotion or greater
opportunity.
Remember, the offer is all about “what’s in it for
them.”
Autonomy/Flexibility
Most
people like to be masters of their own destiny. If there’s more
autonomy in this role than their current role or if the
culture/manager is very open to new ideas, the candidate will
see it as a benefit—discuss it. If there’s flexibility
in the workweek or the opportunity to work from home, mention
this.
Challenging Work
If new
technology is being used, you are adding to the individual’s
skill set. This
has a value and should be considered as part of the
offer. If this is
the first time the person will be leading a team, this is
another perk. If
there are exciting projects, you should discuss this again at
the time of the offer.
Commute
If the
position is located closer to the person’s home than their
current job, mention it.
If it isn’t, consider discussing flexible start times,
any work-from-home options, or carpooling
opportunities.
Compensation
Start
with base compensation, then incentive compensation (if there
is any), the performance bonus or commissions/incentives, and
finally the 401K/pension.
Corporate Culture
People
work best when they’re in an environment that suits their
personality. Your
corporate culture has a value. People want to belong,
and they will come to work at your company simply because your
culture fits them and their current employer’s does not. Take this opportunity
to sell, using words that describe your culture. Consider terms such as
entrepreneurial, flexible, family-oriented, creative, caring,
fast-paced, casual, fun, professional, team-oriented, success
driven, goal-oriented, etc.
Corporate Financial Stability
If your
company has a great balance sheet, 100 years of profitable
existence, or 15 years of profit growth, you should discuss
it. Everyone
wants to work for a financially solid company. The candidate might
suspect his current employer is headed toward tough financial
times. Knowing
that they’re going to a solid employer will be a big
plus. Play up
your company’s success.
Health/Insurance Benefits
Discuss
your benefits package and the related costs. Include health
insurance, disability insurance, and dental/optical
packages.
Long-Term Earning Potential
Discuss
bonus payouts and a pension plan or profit-sharing plan, if
you have it. If
there are stock options or discounted stock purchase plans,
discuss wealth-building options. In addition, talk
about the average raise/bonus paid out over the last few
years. If there’s
a career path for this person, discuss it and the earnings
potential of following this path.
Management
If the
direct manager is a mentor or a great leader, this job is a
better opportunity.
Working for someone who has a track record of promoting
people is a distinct benefit. Make it very clear who
this person will report to, both directly and
indirectly.
Other
Benefits
Find out
what is important to your potential hire. Do they plan to
continue their education? If your company offers
paid tuition or tuition reimbursement, make sure to mention
it. Has your
potential hire mentioned children? If your company has an
on-site daycare facility, or has made arrangements with such
facilities, this is a huge benefit. Listen closely to what
they’re telling you during the interviews, and if your company
has corresponding accommodations, you may be ahead of your
competitors.
Overnight Travel
It’s
possible that the travel associated with this job is less than
their current situation.
If so, sell the idea of more nights at home with their
family. If it’s
more, then discuss how well you treat your people when they’re
on the road, such as traveling business or first class and any
flexibility you have with working from home.
Perks
Company
car, better mileage plan, free daycare, dry cleaning service,
ongoing training, education, and membership to professional
associations and attendance at their meetings—these are all
perks. Think
about the unique things your company offers and discuss them
during the offer stage.
Physical Environment
If you
have a beautiful campus setting, remind them of it. If their office comes
with a view, or if they will have a private office, mention
this. Consider
the amenities at your facility that another might not have,
such as an on-site cafeteria, workout facilities, etc. All of these things
will be considered when the candidate is making a decision.
Remind them of the amenities your company provides.
Prestige
Most
people don’t leave a top-tier company to work at a third-tier,
even if it is for more money and a better job. Many people want to
work at the most prestigious company in their field or in the
most prestigious sector of their industry. If your company is a
leader in any way or is more prestigious than their current
employer, play this card.
Retirement Savings
The
older sector of the workforce is thinking about retirement
savings every day, and the younger sector has learned from
their parents that you need to plan for retirement early. Discuss the options
that your company provides.
Team
Top
performers want to work with other top performers. If you have a standout
team or if you have a few key players, talk about how this
recruit will interact with, learn from, and contribute with
these people. If
you have a charismatic leader, bring them into the interview
process and then remind the recruit that they will get to play
on this leader’s team.
It worked for Lee Iacocca and Jack Welch, and it still
works for Donald Trump.
It will work for you.
Technology
Mobile
phones, laptops, PDA’s, and service plans are all valuable
parts of the offer.
Title
This is
like the prestige factor described above. Use an improved title
as a bargaining chip.
It works!
If you have to, create a new title. I know one company
that changed the “Director of Human Resources” title to “Chief
People Officer.”
Wow!
Sounds great, doesn’t it? Try this when you
can.
Training
Discuss
what they will learn.
Include new technology or any formalized training
programs in which they will participate, both internal and
external. Today’s
employees want a great skill set. If your opportunity
will add a skill or improve one of their existing skills, it
makes them more valuable in the workplace and increases their
ability to earn more money.
Vacation/Personal Holidays
Spell
out your vacation policies and practices, as well as any paid
time off plans.
Include holidays, which depending on your industry, can
add considerable time.
Work
Week
Here is
where you discuss reality. Compare travel, nights
away from home, late evenings with one job vs. the other. Also consider commute
time. Remember to
calculate traveling days if extensive overnight travel is
involved.
Section
Two—the executive list
Company Car
It’s not
only the company car, it’s which car. There’s a great deal
of difference between a Ford Taurus that you have to maintain
and a fully expensed Lexus. Consider what they
have and what you’re offering.
Contractual Agreements
If there
are non-competitive and confidentiality agreements or
intellectual property contracts to be considered or an
agreement to reimburse moving expenses if the hire leaves
before a certain period of time is up, discuss it during the
offer stage.
These items should not be left until the compensation
has been agreed upon, as it appears less than honorable. Discuss all
restrictive covenants during the offer.
Executive Benefits
If there
are separate insurance plans or other perks for your
leadership, detail it here.
Executive Bonus
Performance-based incentives for top executives can
make a huge difference in their income. Make certain that the
potential is discussed, as well as a payouts history and the
results that must be achieved in order for the bonuses to be
paid.
Stock
Options
Vast
wealth has been accumulated through stock options over the
past few decades.
Make certain that you’ve discussed how these work. It might be wise to
have the CFO make a call to go over this important
detail.
The
relocation list
House-Hunting Trip
Between
offer acceptance and start date, have the new hire visit the
area with a realtor, preferably one who is a relocation
specialist. If
possible, include the spouse and the family. The company should
offer to pay for this trip. Remember to consider
travel, hotel, and meal expenses. A fruit basket or
other token sent to their hotel room goes a long way toward
building good will.
Incidental Allowance
It costs
to move, and often the trailing spouse is the one thinking
about this. There
are costs related to signing up with utility companies to
buying food for the freezer to buying new curtains (because
the curtains never
match up). An
incidental allowance can handle all of these
issues.
Moving Household Goods
Household goods moving plans range from reimbursement
of a U-Haul van to the four plans that moving companies offer
(move, pack-move, pack-move-unpack,
pack-move-store-unpack).
Make certain your offer is understood and that you have
made it as attractive as you can.
Moving Unusual Items
You will
find many items are covered by this topic, from horses and
stock cars to boats and grand pianos. Remember to ask and
make certain you are willing to make this investment. The best surprise is
no surprise.
Temporary Housing
It will
take weeks to find a home and move goods. This could easily be
months if real estate is involved. Short-term temp
housing can be accomplished through a local hotel. The length of
temporary housing varies from one company to another, and it
might include a meal stipend. If you’re providing a
month or more in temporary housing, consider executive
apartments, if available, or simply provide a fixed allocation
that will cover housing expenses for this period.
Final
thoughts
As
comprehensive as we have tried to be in this article, there
will be things that we missed. Look at what your
company really has to offer its employees. Maybe it’s a
sabbatical every five years or free on-site massage
services.
Whatever it is, it has value. Discuss all of the
value that your company provides with a potential hire. It will make your
company—and the offer of employment—look as attractive as
possible.
(As
always, we value your input regarding the content for our
newsletter. If
you have any ideas or suggestions for future topics, be sure
to contact us at melinda@thepittmangroup.com
.We look forward to hearing from you.)
| 