How Do You Approach Negotiating Offers With In-Demand Candidates?

How Do You Approach Negotiating Offers With In-Demand Candidates?

To help you navigate the complexities of negotiating offers with candidates who have multiple job options, we sought advice from recruiting managers and executive recruiters. From initiating negotiation early to understanding candidate needs, here are four expert tips on approaching these negotiations effectively.

• Initiate Negotiation Early
• Understand Candidate's Needs
• Gather Detailed Offer Information
• Walk Candidates Through Priorities

Initiate Negotiation Early

We begin the offer-negotiation process at the first conversation. This allows our clients to understand what this number will look like prior to the first interview and brings the temperature down for everyone. This also gives our candidates information that they may not have when expecting offers from other sources, which in this case, is knowing that the compensation level discussed is on the table. As the interview process continues, so does this conversation. At this point, if we haven't built a rapport with our candidates, we haven't done our job. This allows us to openly discuss any other offers that are on the table and proactively address them as the interviews wind down. After our final interview, we revisit this conversation and have a deeper discussion regarding benefits, paid time off, and any other miscellaneous items. Being able to present this to our client makes this part of the conversation less stressful for all and allows the client and candidate to focus on building a relationship rather than work through what feels like an adversarial situation.

Understand Candidate's Needs

It is important to understand the short-term, medium-term, and long-term needs of the candidate, as well as the pros and cons of each of the multiple job opportunities. When you present your offer as well as the timing deadlines of each of the other offers, the goal earlier during the offer process is to be the top choice and close the candidate right away. If not, the goal is to stay in the top two choices, and then find the right lever to create the most difference to close the candidates—a signing bonus, more equity, speaking to a significant other or mentor of theirs, or to bring in a Board Member of a startup to help close the startup executive candidate. The goal is to have an amazing candidate experience, have a strong and fair offer, and to truly understand the needs and wishes of the candidate. Sometimes it is a decision of the heart, while other times it is a more logical decision.

The Paradox of Choice by Barry Schwartz is a great book to understand someone's buying psychology, while Robert Cialdini's book, Influence: The Psychology of Persuasion, shares different tactics to influence someone's decision.

Gather Detailed Offer Information

Over my 25 years of recruiting, I have represented dozens of candidates who have been extended multiple offers simultaneously. Closing a candidate to accept an offer is the most stressful point in the recruiting process.

When this situation does arise, it's vital to get as many details about the other offer(s) as possible—the company, their location, the complete compensation package (base salary, potential year-end bonus, healthcare benefits, moving allowance [if applicable], sign-on bonus, perks [computer, cellphone, travel per diem, etc.]) You need to know exactly what you are competing against to sway the candidate in your favor.

After gathering all this information, ask, "If both offers were identical, which would you take?" Then, don't talk. Regardless of their response, say, "Why is that?" Again, just listen. At that point, challenge them slightly. "What would it take to change your mind?" Get their wish list in order of importance. Say, "Anything else?" Repeat until you have a complete list. Then say, "While I can't make any guarantees, if I can get you A, B, and C, will you accept my offer?" You want to hear, "Yes." Close by stating, "I'm going to do my best. I'm good to my word. I'm glad you are, too. I'll be in touch." Then, hang up.

Remember never to downplay the other company(ies) or their offer(s). When there are multiple offers to consider, the anxiety heightens…for the candidate as well as us recruiters. Stay calm. This is where great recruiters stop "selling" and start being "friends talking over lunch." Above all, don't be combative.

Walk Candidates Through Priorities

When candidates come to me considering multiple offers or career opportunities, I ask them to do three things:

Trust Their Gut: I encourage them to take some time for themselves—go for a walk in nature, take a nice bath, meditate, or practice deep-belly breathing—and really tune into what feels right down in their belly. I am a true believer that the gut will never lie.

Revisit Their Priorities: I ask them to go back to what they were looking for in a new role and create what I call the Hell Yes/Hell No list. I encourage them to list out what the mandatories of the role are and what gets them excited when they think about a new role—this is their Hell Yes list. I then ask them to list out the absolute NOs in their next role—this is their Hell No list. Once that's done, they should compare each opportunity and see which one aligns more with their Hell Yes list. This exercise can also be more impactful to do with a trusted friend, family member, or coach who is unbiased.

Consider More Than Salary: I advise them not to automatically choose the highest-paying role. Often, there's a reason for the higher salary, and while many of those reasons can be good, it's important to consider the whole package and what will truly make them happy in the long run.