Presenting the Complete Employment Offer
July, 2007. 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 at an executive level, there are many more. 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. Not all will apply to your company. 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 your offer.
The importance of providing your complete offer
Ben Franklin, 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 most of the items listed below when making a decision, whether they actually talk about them during the interview process or not. Because they’re thinking about them, you want them to know what your company has to offer.
The list
Because different things are important to different people, this list is in alphabetical order in each section. Section One pertains to virtually every hire. Section Two adds options that relate to 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, telecommuting 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 strong 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 issimilar to the prestige factor described above. Use an improved title as a bargaining chip. It works.
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 payout 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.
We are committed to making this newsletter worth your time. This article is based on content provided by Dan Simmons, President and Founder of Continental Search and is used with his permission. We value your input. If you have ideas or suggestions for future topics, be sure to contact us at info@harperhewes.com. We look forward to hearing from you!
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