In order for one of your clients to present an offer that will be accepted by your candidate, they need to know four numbers:
1. Your client must know what they can afford to pay. If they say it’s “open” or “totally depends on the person” or “whatever it takes,” do not accept any of these as a valid answer. Ask what amount they have budgeted for the position. If they have not budgeted an amount for the position, it also means they have not budgeted an amount for your fee. Is that the type of client with whom you wish to work? I think not.
There can be many reasons why a client could be reluctant to disclose the range of compensation to a recruiter. They may suspect their range is too low, and therefore, you will not work on their opening. They may believe that if you know the true range of compensation, you will only present candidates at the high end of the range because you will receive a higher fee if one of them is hired. They may not trust you to keep the information confidential.
If any of these reasons are identified, you should not proceed. You have yet to earn the trust of your client. This lack of trust will show up again and again in many areas of the process and severely compromise your ability to effectively create a positive outcome for your client.
2. Your client must know the current market value for the type of individual required to successfully perform within the position. An experienced recruiter is the best source for this up-to-date information. As a matter of standard practice, concurrent with your search efforts, you should be compiling compensation information that can be used to clearly establish market value.
3. Your client must know the compensation history and/or the present or last level of compensation for each of your candidates. Obviously, this is information that you should share with the client in preparation for their first interview with your candidates.
4. Your client must know the exact level of compensation that needs to be included in the offer to gain an acceptance from your candidate. Once again, you should be providing this specific information to the client.
Conversely, you must determine with your candidate two critical numbers.
First is the lowest level at which they would even consider an offer, one dollar below which you have their authorization to instruct your client to offer the position to someone else. Second is the specific offer number that they would feel comfortable accepting on the spot.
Armed with this information, you should be able to guide the client in preparing an offer that meets or surpasses the second number. If this cannot be accomplished, prepare your client to move to their secondary candidate (one of yours, if you’ve done your job properly), or be prepared for an offer turndown.
Do your clients know these four numbers before making an offer to a candidate?
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Terry Petra is one of the recruiting industry’s leading trainers and business consultants. A Certified Personnel Consultant since 1975 and a Certified International Personnel Consultant since 1989, Petra has extensive experience as a producer, manager, and trainer in all areas of professional search, including retainer, contingency, and contract, as well as clerical/office support and temporary. For more information about his services, visit his website or call 651.738.8561.
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