How to Extend an Offer: An Exact Science
January 10, 2013
You’ve searched long and hard for the perfect candidate. You finally found the one and want to extend an offer, but what’s the absolute best way to do that? Never fear — here are a few things you need to consider before you make that call.
Who will present the offer?
First and foremost, decide who should be the one to deliver the offer. Is it HR, the Talent Specialist who recruited the candidate, or the person that the position will be reporting to (hiring manager)?
Maybe your company has a protocol. Maybe one person has already developed a great relationship with the candidate. Be sure to think about whom the candidate would be most receptive to.
Get a verbal acceptance
Once you’ve deliver the offer make sure to keep it positive — the excitement that you convey over the phone will rub off on the candidate. You want them to know that you’re very happy to invite them to come on board.
Also, try to get an answer over the phone — a “verbal acceptance” will help solidify their commitment and decrease the chances of it falling through. If you cannot get a verbal acceptance, find out why. Are they concerned with the offer amount? Do they have reservations about the position? Try to alleviate any doubts right then and there.
What should be included in the offer letter?
Your company’s administration or HR department should have a template to use. If not, you should work with your legal or HR team (or an outside source if necessary) to create one. Make sure you include all the basic necessary items, such as:
- Name of Employee
- Name of Company
- Title of Position
- Start Date
- Salary/Hourly Rate
- Bonus/Other Incentives
- Benefits
- Legalities (at-will employment, etc.)
- Job Description (could be appendix)
Additionally, you should set a deadline for a response. Typically this should be between 48 hours to a week. The more time you give (and the more time it takes), the more likely it is the candidate will not accept.
Preparing for counter offers
Counter offers from the employee’s current employer are always a concern. No matter what the candidate’s reasons for looking for a new position are, there are always things the current employer can say or do that can entice them to stay. Although there is significant data out there that suggests accepting a counter offer is rarely a good idea, you need to be proactive, not reactive.
Throughout the interview process you should be able to get a feel for the candidate’s current relationship with their employer and/or manager. Maybe they are extremely unhappy. In that case, you have less to worry about. However, it is very possible that they are happy where they are but are interviewing because the opportunity you are presenting is a great one.
Be prepared by leaving a little wiggle room in the offer to allow you to increase it if necessary or consider adding a sign-on bonus. Show this candidate that you are extremely interested in having them join your team.
When in doubt, go back to your notes
What is the candidate looking for in an offer? Will he or she need X amount in order to accept? Maybe he or she is looking for at least 3 weeks of vacation or wants to be able to work from home. In such a case, don’t bother presenting an offer that is not what they are looking for. The chances of it being accepted are very low.
You also need to mentally prepare yourself for the candidate to accept the counter offer. Do not close the search until you have a signed offer letter in hand and the candidate has given their notice to their current employer. This way, in the event that the candidate ultimately rejects your offer, you do not have to start from scratch.
Extending an offer can be tricky and it’s discouraging when it is turned down. Make sure you are well prepared before making that call. Hoping for the best but preparing for the worst is the way to go.