Photo by Cytonn Photography on Unsplash
When is the last time you received a job offer that was much BETTER than you expected? An offer that exceeded the expectations that had been discussed and left you with the feeling, “Wow, these guys must really want me on the team!” As I write this, I am sure that few of my readers have enjoyed this situation, which is unfortunate, but perhaps if you are a hiring manager you might recognize why it is ALWAYS better to make a strong offer to a candidate and exceed their expectations.
Consider the following…
I recently completed a search where the company’s offer meaningfully exceeded the expectations of the candidate and it was only the second time I have seen this occur. The first was outside of the water and wastewater industry. Years ago I worked with an executive who came from the software industry. He had joined a rising star technology company which grew from $11 million when he started to approximately $2 billion when he left. Note, this was in the late-90’s which feels forever ago given today’s trillion dollar valuations! We were recruiting for some sales roles and he deliberately made offers that exceeded expectations. A nice bump in salary, a very aggressive commission plan, and a promise to do what he could to help them make a lot of money AND have fun while succeeding.
To say that the new hires were enthused, energetic, and confident was an understatement. They attacked the market, developed their territories and through their business communications conveyed that their company was a force to be reckoned with and that they were an example of success. The effect on the market was that the company could suddenly punch above its weight and compete with the big boys… simply because people believed. And it all started with a strong offer.
When you make an offer that exceeds expectations, yes it does cost more, but you are also buying more. Good, motivated candidates feel a sense of responsibility to deliver against this expectation. In effect, you are making good talent better. Consider the alternative, a weak offer, or cut in pay, delivered to the candidate with language such as, “This is the best we can do…” It may not be what the company said, but a candidate can easily understand this to mean, “This is what we think you are worth and even this might be a stretch…” Weak offers are a demotivator and negatively affect the candidate before they even start. What a waste of good money!
Of course, some of you might be in complete disagreement with me given that everyone can’t always get an insane offer and you are right. However, consider the following…
Imagine two similarly qualified candidates who are competing for the same position and who are both not dissatisfied with their current opportunity. Candidate A, has demonstrated experience and has held similar roles in the past. Candidate B also has the desired demonstrated experience but has only recently held a similar role. Candidate A is making $200K in base salary plus bonus, while the other candidate is making $180K. Internally, you have budgeted $200K for this position. If you are Candidate A and you receive an offer for even money, it is going to feel weak, as you do have switching costs and the risk of taking a new role. Conversely, if you are Candidate B, a $200K offer might feel exciting and strong. Candidate B may feel that the company really believes in their candidacy and that confidence is inspiring. If Candidate A accepts, isn’t there a better chance that they will just see this as their next “JOB”, whereas if Candidate B accepts, they are more likely to see this as their next “OPPORTUNITY”. The difference in mindset is fundamental!
In summation, perhaps the most important takeaway is that if you are going to make an offer, put yourself in the candidate’s shoes and think about how the offer will be received. Would you be energized and excited? What would you think the company thinks of your candidacy? Use your empathy to make better decisions.
I feel like this article should be part of a series titled, “How to Hire the Best and Stop Wasting Time”. If you would be interested in learning more about key strategies, shoot me a note at Austin@HunterCrown.com.
Written by: Austin Meyermann, Founder and President of Hunter Crown, LLC
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