Win-Win: The Bigger Picture When Negotiating an Offer
By Kelly Nelson
It is common for the client and candidate to seek the recruiter’s guidance when it comes to the negotiation stage of the recruitment process. The recruiter needs to develop a true trust relationship with both the client and the candidate.
While the recruiter must understand the objectives and limitations of his or her client company, they must also understand the various motivations of the candidate. This results in the recruiter’s ability to pull both parties together in any negotiation. The experienced recruiter should have the ability to form creative solutions that draw on these understandings and provide meaningful benefit to each party.
Negotiating For Clients
The recruiter must be able to suggest creative solutions to clients that provide unique methods of reaching closure with candidates. Oftentimes, the client company is unable and unwilling to adjust the base salary when asked by the candidate. There are many ways to solve this apparent impasse. We have assisted clients in creating partial guarantee bonuses, sign on bonuses, additional perquisites, more aggressive bonus plans, and enhanced relocation packages that result in narrowing the gap between the two parties’ negotiation positions.
Negotiating For Candidates
The closing negotiation often involves compensation – but not always. It is imperative that the recruiter has the candidate consider total compensation, and not just base salary. The recruiter must also be able to provide the candidate with “vision” regarding how the opportunity can potentially advance their long-term career. The recruiter must always cause the candidate to focus on the long-term horizon, and the potential for career growth.
Knowledge of local and state income tax rates can assist the candidate in understanding that taxation is another significant metric involved in compensation. Ultimately, it comes down to take home pay – not just gross income. This also applies to cost of living. For instance, a candidate in San Francisco, CA considering a position in Orlando, FL is looking at real estate cost reduction that will be significant. If they own a home, the home equity differential can be a real wealth builder. If they currently rent, but aspire to own, this may be very possible in a less expensive real estate market. Finally, an understanding of available public and private education options can be highly attractive to a candidate with children in school.
Keep in mind that the recruiter must be credible, resourceful, and helpful to both parties in the transaction. Negotiating will be one of the most difficult stages in the recruitment process if the recruiter fails to build the aforementioned trust relationships.
Bristol Associates, Inc. is an executive search firm with over 50 years of excellence in recruiting nationwide. Bristol specializes in recruiting for the Casino Gaming; Hotels and Resorts; Travel, Tourism, and Attractions; Facilities and Concessions; Food and Beverage Manufacturing; Restaurant; Hospital and Healthcare; and Nonprofit industries.
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