OK – let’s get this out first – you’re a star. You’re trolling the web for ways to get better at the Talent game and interact – that’s why you’re here. As Eddie Vedder once said – “This is not for you.” Then again maybe it is.
Tim Sackett and I did a presentation at SHRM. It had a fancy title about influence, but I’ve presented the deck elsewhere as “How to Raise Your HR Game by Thinking Like a Money Hungry VP of Sales”. Which is not to hate on sales pros – it’s actually to push some love their way. HR pros (and recruiters) can learn a lot from how a sales pro uses negotiation tactics to get to “yes”.
Topic number one in the presentation is the following:
“Dealing with Unrealistic Expectations”
The way a sales pro would deal with this?
“Make sure to deliver the first strike in any negotiation.”
Here’s a great example of how it works. One of many post session conversations was with an HR pro who was interviewing for another job. Let’s call her Sally. Sally was flying out the next day for a final interview for a mid-level, HR spot. Here are some Sally specs on the job:
-Sally makes 95K. She’s disclosed that to the company and the recruiter.
-The recruiter in question put her up for the job, and told her the range was 110-150K for the job.
-She’s been through long phone interviews with the recruiters and 2 Skype interviews with the remote company.
-No one has boxed her in on what it’s going to take ($$$) to get her to uproot her family, leave her current job and make the move.
-Sally’s number she wants from the job is 135K.
So – Sally came up to me after the preso and wanted to know how to use the first strike negotiation tactic to get as close to her number as she could. PS – her name’s not Sally. Probably not even the right gender. You can talk to me confidentially…
But before I get to that, here’s the big problem. Sally hears the range and thinks – “I’ll do that for 135K”. The employer has to have heard what Sally’s making and thought – “we can get that done for 110-120K. ”
And it all could have been avoided with the recruiter bucking up and framing the expectation with a first strike – “Hey Sally, based on where you’re at in your career, if you end up being the right candidate for this job, the offer’s likely to come in somewhere in the 110-120K range. If we get to the end of the process, will that type of offer work for you?”
Boom. Expectation managed. Candidate framed nicely and no risk of being embarrassed as a recruiter when the candidate tells the remote company on the big interview day that she needs 135K or 140K.
No – you’re right. CEOs never lose their mind and take it as a personal affront when candidates like Sally tell them they need a 45-50% increase on the final 8 hour interview day.
But back to Sally – how does she use the first strike negotiation tactic for herself at this stage in the process? Well – she’s late in the game, so she needs to tread carefully. I advised her to play the game in the interview, and in a late stage in the day with the CEO, break out the following, “So Bob – I understand the range for this position is 110-150K and you know I’m at 95K. What do you need to know about me to know what type of offer I would accept – what I’m thinking, what it’s going to take to get me to move my family, leave Atlanta for a much smaller town, etc. Just want to be totally transparent with you so there aren’t any surprises, if I’m your candidate and we get to the offer stage.”
For the mortal CEO, he’s going to let her get the number out first.
Godspeed Sally. Everyone would have been a lot better served if money was discussed without fear and with intent to close earlier in the process.
yup. Good stuff.
But I’m curious, what middle level HR jobs pay between 110-150k?????
Steve—Depends on your definition of mid level and industry, but I am aware of many in that range. Would love to divulge more but need to protect the innocent.
Ok. After more pondering. Sounds like Sally is in a pickle. She needs to quickly read the book “Getting to Yes” and come up with a best alternative option.
Either way, Sally needs accept the fact she won’t get her base of $135k. She wants that number, but doesn’t need that number. Sally should go after other financial options. Go for a sign on bonus, stock options (if possible) and more money in the relo package. Sally needs to make it clear she needs this money because of needs not wants. People will always want more money. People will always want more time. Tell people why you need it. Not why you want it.
Hey Steve – yeah, I originally had this as a senior person, but when you really start digging into the scene, 95-100K is still mid level in the big scheme of things…
Ben – agree. Not going to get 135K for this one from 95 without some sort of inside track – too much time has elapsed and since neith side gave it to the old first strike, everyone’s floated around with their expectations, etc….
KD
Who’s got the best alternative? Does the company have a strong #2 or #3 to defer to should Sally balk on the offer? If so, she’s toast. She’ll need to feel good if she can negotiate $120 since that was the top of the range the company was willing to offer. Vice versa, if Sally has options and or good reasons for being above that then she may have a fighting chance, again assuming the company doesn’t have other options. Strong post, KD.
saberelfaidy@gmail.com
I think you have some valid points here to avoid the big discussion about compensation and numbers. However, I have to disagree about the First Punch theory. Clearly a candidate has to know up front what he/she needs to earn in order to meet the financial demands of his/her life as well and warrant a move or transition. In addition, if there is going to be a discrepency, it’s important to be prepared. However, in an article I wrote recenly entitled “Salary Negotiations in 6 Easy Steps, Parts I and II” (http://www.turningpointsearch.net/resources/articles/) I discussed the benefits of leaving the number discussion in the hands of those hiring. I’m sure that makes it seem like they have all the power, however, that is untrue.
If a candidate does the work up front that I suggested- researching comps, calculate our “3 Numbers” and, if asked for a preferred salary, offer a range. Companies tend to allow for 10-20% wiggle room when negotiating. Offering a range allows for both sides to feel they are getting their needs met. And if negotiations are necessary, dialogue is possible when no one is married to a specific number.
Ken Schmitt
I like the idea of being up front early on to create correct expectations. However, as a recruiter, we often don’t know if the hiring manager/team will REALLY go above their range for a great person. So, giving the candidate a range of the position could mean losing a candidate that the manager, had they gotten to that level, MIGHT have looked for a way to expand their budget for. When I talk to managers about their budgeted range, I always talk about what kind of candidate (if any) would they be willing to go over their budget for and by how much…..but I’m never entirely sure if they might be willing to go higher for that “ideal” candidate. So, in many cases, the money (unless WAY out of range) talk often has to wait till later in the process.
Do you have any suggestions about this?
Hi Kim –
Here’s my thought. If you’re doing what you can, you know what the candidate is making, right? That applies regardless whether you know what you can pay for a more experienced hire. If you know what they are making (and all of us need to), then you can test the waters with a range. Wordtrack – “A candidate with your experience that gets to the offer stage is probably going to receive an offer somewhere between ___ and ___. If we get to that stage, will that be an offer you can accept?” Doing that puts all the pressure back on them – do they want to be included or not?
I’d try a range that shows an increase for them if they take the job between 5 and 12% – if they’re inflated their salary, odds are your 5% is more like 10-15% to them, and if they’re not, you’ve gotten them into double digits beyond 10%, where they have to ponder.
I’d encourage you to experiment – if you wait for the manager to tell you what they’ll do, you’re being too much of an administrator. If you tell the manager that you’ve had the conversation, and here’s what it will take, at least when I had the conversation, you’re value add.
Experiment and see… KD
Couldn’t agree more with KD’s last comment – talk about money early and often with your candidates!
I talk about compensation during our first call, re-confirm when setting up on site interviews, confirm again after interviews (after I’ve gotten feedback from the hiring team and know where an offer will likely come in at), and usually once more in a pre-close conversation before extending the offer. If the candidate’s expectations have shifted during any stage of the process, it avoids the surprise of learning that at offer time. Similarly, if I learn fro the hiring team that they’re only going to be able to go to X, I can have that open dialogue with the candidate. Upwards of 90% of my candidates accept my offer without additional negotiations to spite the fact that I recruit in highly competitive niche areas.
Chelsea – ABC. Always…. Be… Closing….