You started with 15 telephone interviews, then invited five finalists in for personals. You’ve narrowed the five final candidates down to the one candidate whom you feel is the best person for the job. You’ve completed references, and they came back stellar. Now you’re ready to offer your final candidate the job!
Okay, now what?
The job offer stage is where a lot of entrepreneurs stumble, and there are a variety of reasons for this fact. For starters, the offer stage of the hiring process is a lot like the closing stage of a sales process. If the salesperson has been consistently uncovering facts, exploring buyer motivation, understanding the hot-button issues, and trial-closing their prospect all along the way, then the “oh sh*t!” moments where the sales process runs off the road into a ditch at the moment of truth are few and far between. However, if the salesperson has failed to uncover and handle the multiple objections that lay beneath the surface of every prospect’s buying decision, then the, “You know, Bob, we’ve decided to go with another supplier” conversation happens just when everyone feels like the sale is in the bag. Bad.
There are a few basic guidelines to follow that will make for smooth sailing during the offer stage:
Know the hot-button issues. How far will your candidate have to commute every day to get to your job? Does this candidate want to work from home whenever they feel like it? Will this candidate balk at overnight travel? What about weekend travel? What benefits - health insurance, dental coverage, 401(k) match - are most important to this candidate? What mix of base + incentive compensation is acceptable to your candidate? If you haven’t uncovered the answers to these and other very basic questions, then you’re setting yourself up for a surprise rejection.
Know where you stand. Does this candidate have other job offers pending? Other interviews scheduled? Where does your job opportunity stand in relation to the candidate’s other options? Don’t wait until you get a rejected job opportunity to realize that your top candidate had your job ranked as their backup option.
Use verbal trial-closes to keep the process moving. The “trial close” is a sales tactic that is used to feel out a prospect at various stages prior to the actual “sign here” conversation. Good recruiters use trial closes to feel out their candidates after each step of the recruiting process. “Nancy, let’s say that we get through this process and agree that this is a great mutual fit. Assuming a base salary of X, with on-target earnings of Y, and a benefits package of Z, is this a position that you would feel comfortable accepting?” The key here is to probe for specifics, no matter the answer. If there is any hesitation on your candidate’s part, there’s something you don’t know. Find out.
Issue the offer verbally before issuing a written offer. Do not email an offer to a candidate and have it be the first time they’re reviewing numbers and terms. When you’re ready to issue an offer, call the candidate. Once you get them on the phone, tell them that you’re pleased to inform them that they’ve been selected for the position. Thank them for their persistence through this lengthy but thorough process. Tell them that you’d like to take a moment to walk them through the offer verbally before sending the formal offer to them. After you’ve walked through the offer, ask them if they have any questions. Answer them. Ask them if they have any issues or concerns. Address them. If you feel like there are any loose ends, do NOT make the written offer. You have no idea whether or not this person is going to accept it. Wait until you have addresses all issues to the candidate’s satisfaction, and then send the written offer.
Use a standard offer template. Don’t recreate an offer letter from scratch every time you hire someone. A good offer letter is as much a marketing document as it is a statement of facts. Is it readable? Does it have a professional appearance? Does it touch on the major points? Additionally, your standard offer template should set a time certain at which the offer expires. It should also tell them to sign and fax/scan the offer letter back to you by this time certain (72 hours is my standard recommendation) in order to indicate their acceptance of your job offer. Do not make an open-ended offer, because you’ll lose the ability to dictate tempo. If the candidate asks for an extension, ask them why. 90% of all candidates asking for an extension on an offer decision do so because they’re waiting for another job offer to come through. That’s okay, but you definitely want to know that. The other 10% of candidates asking for an extension really do want to talk it over with their spouse. I never grant extensions longer than a week.
Follow these straighforward guidelines to improve your offer acceptance rates.
