The Korn Ferry Insider Issue 3: Sealing the deal
-
Upload
korn-ferry -
Category
Recruiting & HR
-
view
38 -
download
0
Transcript of The Korn Ferry Insider Issue 3: Sealing the deal
www.KornFerry.com
DEC. 2014 The Korn Ferry InsiderAdvice from the world’s most
influential executive search consultants.
Issue No. 3:
© 2014 Korn Ferry. All Rights Reserved.
Sealing the deal
By the time a job offer is extended, a recruiter has invested hours over many weeks or months get-ting to know the person and making sure they
right for the role. This begins the most crucial stage of any search: the slightest misstep in negotiating the final
terms can cause executives to renege at the final hour and end a promising match. To avoid a case of cold feet, recruiters have to be exception-
ally tactful and make the process go smoothly. Korn Ferry con-sultants share five tips that can save a lot of unnecessary heartache in the closing stages of an executive search.
www.KornFerry.com
DEC. 2014 The Korn Ferry InsiderAdvice from the world’s most
influential executive search consultants.
1. Know the bottom line.Establish clear guidelines about
what level of salary is required
to secure the best person for the
job. Be realistic about how that
compares to the competition. Are
the salary and full compensation
package in the middle, or the up-
per quartile of what the rest of the
industry is paying? What portion of
someone’s equity in their current
employer’s stock are they willing to
replace/offset? 80%? Half? None?
Where is there room for compro-
mise? What are some creative and
“out of the box” solutions that you
can present as leverage?
2. Remember what drives them.By now, a recruiter should know
what motivates and is meaning-
ful to the candidate. Speak their
language: Are they highly analytical
and detail-oriented? Will they ask
hundreds of questions to clarify and
understand? What in the culture
or opportunity of the company will
resonate with them? Is relocation
something they desire, or are there
other personal obstacles? Thinking
in this way as the discussions prog-
ress will help you know how much
to give and what information they
might find persuasive.
“In the old days, we’d get candidates who would ‘play the game’ and use the negotiations process
to go back to their companies. But candidates for top roles are more mature now.”
www.KornFerry.com
3. Get on the same page.There is nothing worse than thinking
you are near the end of compensa-
tion talks only to have an execu-
tive counter with something quite
significant—e.g., another $1 million in
equity—that they “forgot” they cur-
rently receive. Save everyone a lot of
headaches by creating a comprehen-
sive compensation checklist, giving
it to the candidate to complete, and
getting their signature. Include any
possible perk, no matter how seem-
ingly trivial. This puts the onus on
the executive to delineate expecta-
tions, and allows you to talk “apples
to apples” during negotiations.
4. Keep the talks offline.Avoid putting anything in writing
until the final stages. Discuss early
offers over the phone. Walk through
their checklist, to demonstrate how
the new offer compares to their cur-
rent package.
“As a search consultant, I am free to have an unbiased and impartial conversation with both parties. For example, it is much easier for me to say, ‘Are you crazy? We have done four of thesve searches in the last six months, and none of them paid like this.’”
DEC. 2014 The Korn Ferry InsiderAdvice from the world’s most
influential executive search consultants.
www.KornFerry.com
5. Don’t drag your feet and then demand and answer. Putting an executive’s offer to-
gether often requires going
through a compensation commit-
tee, or similar, multiple layers of
approval. Be aware that from a
candidate’s perspective, the lon-
ger it takes for an offer to come
in, the higher their expectations
will be. To maintain trust, stay
in close contact and be candid.
Manage expectations on timing.
Once you finally make an offer,
give the executive a fair amount
of time—no less than five working
days—to respond.
DEC. 2014 The Korn Ferry InsiderAdvice from the world’s most
influential executive search consultants.
GeTTInG amazInG pRoFessIonals to sign on the dotted line is a real achievement. The minute the contract is completed, the important work of onboarding begins. In the final installment of The Korn Ferry Insider series, we look at the intricacies of upholding and de-romanticizing the promises made during recruiting to seamlessly integrate the executive into a new culture.
www.KornFerry.com
First, understand outlooks. Steer discussions away from compensation packages until you have a clear picture of the candidate’s expectations and the company’s budget. If the leader’s current base salary outstrips the usual range for comparable roles, manage expectation. It should be the candidate’s choice at that point whether to continue any negotiations. But also remember: money is rarely the true attractor for a new job. The opportunity is what holds allure.
Beyond the basic salary. Long-term cash incentives remain attractive options that privately held companies cannily offer instead of equity
Know the detail. The executive’s account of his or her compensation package is a start, but you also have
to thoroughly understand it. Equity can be wildly over- or underestimated, and half of candidates do not really understand the effect of stock options on their net worth. Do not, however, try to be their financial advisor.
Hire a mediator. When it comes time to craft and negotiate a complex compensation package for senior executives or board directors, many human resources leaders prefer to hire specialist search consultants from firms like Korn Ferry. While firms may have in-house industry research, the best search consultants have access to real-time, talent data that crosses sectors and functions. That provides a reality check, and a party who can help both sides address perceived obstacles with confidence.
DEC. 2014 The Korn Ferry InsiderAdvice from the world’s most
influential executive search consultants.
negotiating Tips