22
How to Offer

Now that we’ve finally found someone worthy of an offer, let’s follow a process and create an offer that they’ll accept. There are all kinds of chances for stumbling at the end, but be smart, do it well, and you’ll end up hiring the best candidates who have multiple offers.

Some managers don’t know that sometimes HR wants to be the one to make offers. HR is often evaluated on the numbers of offers they make and how many are accepted, as part of recruiting metrics. A lot of managers mistakenly turn over making offers to HR when they don’t have to.

Letting HR make your offer is the single biggest mistake managers make when offering. At this critical moment, it’s not a good idea to turn over to someone else the only step you have left. It makes no sense at all.

Never turn this job over to HR. If HR is making offers, it’s because someone before you made a mistake, and/or some lawyer thinks it’s better this way. Lawyers don’t run your company, managers do. HR doesn’t run your company, managers do. Don’t turn over the seminal step of how your company grows—improving its talent base—to a lawyer or HR.

And, we’re not against HR here. Many HR managers do this well, better than managers. But that doesn’t mean we managers can’t learn how.

Just think about turning over the act of making an offer, and then hearing from HR, “Well, he seemed interested enough. I can’t quite put my finger on why he declined your offer.” What if HR doesn’t know to leave a detailed offer message? What if they mess up because they’re not completely familiar with your special area? These is a delicate moment for you as a hiring manager.

Even if it’s policy to have HR make the offer, go ahead and make the offer first. Yes, you’re reading that right. Tell the candidate you’re going to have HR call after you, to do it “officially” and to go over details, as part of the process. Ask him or her to accept to HR, officially.

After making your “early offer,” call HR and tell them you’re ready for them to call the person. Tell them you’ve already “teed up” the candidate and she’s ready to accept.

Do Some Prep Work

This is of course different for every company—and this is why HR gets involved often. Start by asking HR what comprises an offer. Ask for the benefits information for the position you’re filling.

Do not make an offer based on salary and deadline alone. Know the key points of medical, dental, insurance, vacation, flexible benefits, pension, and incentive pay. Take your time, and take some notes as you prepare, because you want to appear knowledgeable and confident. You need to know more than a laundry list, but you don’t need to know every monthly deductible yet. Find out who you’re going to refer questions to regarding benefits and compensation.

Consider Increasing Parts of the Offer

As you’re preparing the list, see whether there are any parts you want to and can increase. The one that often allows some flexibility is vacation for exempt employees. You can increase it . . . many managers give team members additional time off for various reasons. Why not tell them they can have an extra week? And that you’re flexible on time off when necessary?

There may be other benefits as well, based on your company. Read them through as you’re preparing.

Make the Offer the Moment You’re Ready and You Can

We don’t know why some managers delay. Everyone has been on the receiving end of a delayed offer. Don’t do this to your candidates! Make your decision, do your prep work (if you haven’t already), and MAKE THE CALL. (There are exceptions, discussed later.)

If you can, do it from a landline. Clear your desk. Turn off your mobile. Turn off your computer monitor. If you can, do it in the morning—that gives the candidate extra time, and you will sound better and feel good the rest of the day, rather than going home and wondering what the candidate is going to do.

Furthermore, she may accept immediately, and then you have time to take action that day. Or, if she declines, you can take action that day.

Don’t Wait to Make an Offer in Writing

Make your offer verbally. It’s faster, it’s more personal, and it drives faster decisions.

Your organization may insist on creating a written offer letter. They may even say that “nothing’s official” until the offer letter has been signed and returned. That’s fine; you can still get a verbal acceptance and start the onboarding process right away. The chances that someone accepts verbally and then shortly afterward declines in writing are so small that you won’t have wasted much work. But more importantly, you will be much more likely cementing a relationship with someone who will be working for you soon.

It’s Okay to Leave a Voicemail

We don’t know who started the guidance that leaving an offer via voicemail isn’t a good idea. It’s comical how it happens: telling someone to call you back but not telling him why. Phone tag for three days, all the while with the candidate not knowing whether it’s good news or bad, though perhaps assuming. In our experience, the vast majority of candidates assume it’s negative. Then the manager says, “It’s good news” and the candidate now sort of “knows,” but starts worrying about details. This is crazy.

Leave the offer on voicemail or an answering machine. Have your notes ready to do so.

Be Upbeat; Don’t Forget Praise and Congratulations

This is a huge missed opportunity for most managers. Take a moment and sell. Talk about fit; talk about your desire to hire the person. Tell him how high your standards are, and how hard they are to meet. Talk about things he did during the interviews. Talk about accomplishments he’s had. Praise him.

Some folks will say that this will increase the chances that offerees will think they deserve more money. That’s not our experience. Candidates want to be accepted. They want to be wanted. Downplaying the joy of an offer to decrease the possibility of negotiations is like cutting off your nose to spite your face.

The Five Components of an Offer

An offer has five components: Offer, Position, Compensation, Start Date, and Deadline.

Offer

You start with the word offer in the first sentence. Don’t say you’d like to make an offer. Say, “I am excited to make you an offer.”

Position

Tell the candidate what position you’re offering. This is usually straightforward, but sometimes new positions become possible based on the candidates’ interviews, or they were being looked at for more than one position.

Usually, position includes location. This is also usually straightforward, but it’s good to be clear.

Compensation

Compensation includes both base and incentive pay, as well as benefits associated with the role. Managers often forget to mention vacation/holiday/paid time off (PTO) when offering.

Some of these items may seem rudimentary. We nevertheless encourage you to give details. The fewer reasons you give candidates for asking questions, the fewer doubts they will have as they consider your offer, and the more likely they will be to accept.

Start Date

Tell the candidate the earliest you would like him to start, and that you’re open to discussing it because of his logistics. If there is a “no later than” date, state that also.

Share Your Deadline

Offers always include deadlines for the offeree’s decision. As a general rule, we suggest giving a deadline about one week from the time of the offer, and the week almost always includes a weekend. If you offer on a Tuesday, you could state a deadline of the next Monday. If you’re making the offer on a Friday, you could ask for a decision by the following Friday. Except in extreme cases, allow the offeree one weekend between the time of the offer and the deadline.

If you don’t give a deadline, your offeree isn’t obligated to answer. This means that if you make your offer without a deadline, you can’t make another to someone else until the first offeree declines. This is an untenable situation for you and your organization.

In the event the candidate doesn’t say yes by the deadline, technically the offer expires. Technically, you don’t need to do anything if you don’t hear from a candidate. But with all the work you’ve put into this process, and the high standards the candidate has met, we encourage you to contact your offeree a day before the deadline (in addition to whatever other communications you have been making) to assess his or her thinking.

Yes, it is professionally somewhat rude for an offeree to wait until the last minute to accept or decline. But the offer is theirs until the deadline, and the alternative (no deadline) is even worse.

To be clear, there is a concept in offering that the definition of an offer is not just its components. The idea of an offer is when control passes to the candidate. Keep this in mind as you make your way from offer to decision.

Finally, it can be reasonable to offer an extension of your deadline to a candidate. It would be extreme in most cases to offer anything more than one extra week. And it wouldn’t be unreasonable to offer less than that to a noncommunicative candidate who asks for that much or more at the very last minute before your deadline. As we’ll discuss shortly, you’ll be communicating with the person in the interim, which should virtually eliminate the chances for surprise.

Finally, if something changes in your assessment of your offeree, you can choose to rescind an offer. It would probably have to be something fairly significant, but it happens. If your offeree’s behavior changes notably, it’s painful to consider rescinding, but it may be necessary.

Regardless of all these various scenarios, remember that you’re the hiring manager. This is an offer for someone to come to work on your team. Don’t let HR take control of your timing or have some unclear-as-to-its-origin “policy” drive your timing.

Ask for Acceptance

Don’t be afraid, also, to ask your offeree to accept your offer right when you make it. Make it clear they don’t have to. Don’t pressure them. But it’s a great way to start a relationship if they do. Imagine telling your team in a group text message that your offer was accepted on the spot, within an hour of your IRCM.

Put it all together—it sounds like this:

“Matt, I’m thrilled to be calling to make you an offer. I’d love for you to come work for Manager Tools. It’s very hard for us to find people who meet our standards, and when we do, we’re eager to have you join us. Our discussion about new products completely fired me up.

“The position is as we’ve discussed, coaching associate. The base compensation is $80,000. Incentive pay in the form of bonuses and commissions is up to 40% of base. You’ll be able to live wherever you want, based on our discussions. We have a pretty liberal scheduling policy. You have unlimited vacation, unlimited sick days, unlimited personal days. If you want it, you can take it. The medical and dental plans are as we’ve discussed. If you have any questions, we’ll get them all answered. My cell number is:___. My office number is ___. My home phone is ___.

“I’d like to have an answer by next Monday, the 27th. I’m also eager to have you accept now if you’re ready. Will you accept?”

Make Yourself Available for Questions

You’d be surprised how many folks seem to think it’s time to leave the candidate/offeree alone to decide. This is silly. You want to be able to influence the candidate’s thinking because her brother-in-law who works for the government might be influencing her too, and he doesn’t know a thing about your job. In fact, what’s worse, he thinks he knows a lot and wants to tell her about it.

Share your mobile number, and offer to take calls at your offeree’s convenience.

Make HR Available

Of course, make HR available. Give them the candidate’s name, a phone number, and an email address. Ask your HR business partner to reach out proactively to make it easier for the offered candidate to ask questions.

But also make sure they know you are the primary point of contact. You can say it like this: “If you have any questions, please just call me. If it’s benefits or HR related, I will find the right person to help you if I don’t know the answer.”

Don’t turn over all benefit questions to HR. They don’t have the sense of urgency that you do . . . and you have to be on top of the candidate’s thinking and timing.

Keep Other Candidates on Hold

This is covered in detail in Chapter 24.

Call Every Three Days for an Update

You may only have to do this once, or maybe twice, but gee whiz don’t just let the lines go dark. Pick up the phone and ask, “Any questions? I’m eager to have you start and want you to make a good decision.”

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