MAKING THE JOB OFFER (PT 1)

So far, we have run through how to structure your recruitment process to ensure that you hire only the best candidates. By following the process you can be sure that you are dealing with the candidates you would like to hire, and you will have ensured that they are very keen on the role and to work with and for you.

The final stage of the process is to make the job offer and do all you can to ensure that they accept and start work with you.

Before Making The Offer:

Once you know who you are going to make the offer to, review all the information you have about the candidate’s current salary, overall remuneration package and their expectations. Next, list the benefits associated with working for your company including:

• Annual holiday entitlement.
• Any guaranteed bonuses and annual bonuses.
• Any other bonuses which, whilst not guaranteed, are regularly granted such as company performance bonuses.
• Any allowances such as:

• Car, or car allowance, mileage and travel expenses.
• Luncheon vouchers.

• Health insurance and death in service benefits.
• The company pension scheme including how it works and pays out and the contributions made by the company and by the employee.
• CPD or training days.
• Flexible working practices.
• And others that you may have. For instance, at Christmas we close for a week and the time off is added to the annual holiday entitlement so 20 days can become 24 days. It is not officially 'guaranteed' but it has been provided every year to date!

There will be a value to these benefits and this should be totalled up and added to the salary to create a total package value. When benefits are added they can provide a substantial improvement to the overall value of an offer.

After you have listed the benefits, list the expectations that come with working for you, including:

• the normal working hours;
• the dress code;
• who they will be reporting to; and also
• their expected progression over the next three-to-five years if this has been discussed in the interview process.

Once you have all this information to hand, you are in a position to make the offer.

Making The Offer:

By retaining control of the process and being on top of the candidate’s position regarding both where they stand on other options and any requirements they might have if they are to take the role, making the offer and receiving an acceptance should be very straightforward.

Assuming that you are not working for a large organisation with its own recruitment process which says you can’t proceed in this way, my recommendation is that you phone the candidate with the offer. If you are working with a recruitment consultant then you will have established how competent they are. If they are competent and you are confident in them then it is often better to let them make the offer as it is less pressurised for you and the middle man can sell the benefits more independently for you. If you are not convinced about the recruiter and all they provided was a good CV, then I would recommend that you make the offer personally.

Assuming you make the call; it should be friendly and welcoming, to reinforce the feeling that they will be making the right decision by coming to work for you. You should emphasise that you enjoyed meeting them, that you are sure that they are the best person for your role and that you would like them to join you so that together you can work towards achieving both the business' targets and meeting their aspirations in the longer term.

After confirming you are making the offer, fully explain the salary, package and benefits of joining your business. Your clear prior understanding of the candidate’s requirements will usually ensure that acceptance should be readily forthcoming.

Making An Offer Below Expectations:

Having to make lower-than-the-candidate-hoped-for offers will arise from time to time and this is fair enough if the candidate is looking for a substantial pay increase -  say, over 10%, although this could be considerably lower in today’s economy; or if the pay required is outside the scales within your organisation. If the expectations are outside what your firm can meet then this should have been covered during the interview when you discussed the opportunity with them. What would be acceptable in the eyes of the candidate would then have been adjusted so that the lower offer will be acceptable.

A situation I regularly see, however, is the interview process being followed and the hirer knowing what the candidate requires to take the role but then offering a lower amount. The effect of the lower offer is to undo a lot of the positive and motivational feelings the candidate has towards you, your company and the role. Sometimes a candidate may still accept but you will have had a negative impact on their efficacy before they start. Just as frequently, the salary offer has to be increased to obtain their acceptance - but the damage has still been done.

Other risks from a lower-than-expected offer include the candidate not accepting the position or accepting but continuing to look at other roles and maybe taking something else during their notice period. It may not be ethical on the part of the candidate but it does happen and ultimately has been self-inflicted by the hirer.

In my view, offering a lower starting salary 'out of the blue' and contrary to the expectations that you have given the candidate hitherto is always counter-productive and never to be recommended.

The Acceptance:

Ordinarily, the candidate should accept the offer and you can then put it in writing. However, the candidate may ask for some time to think about it and make a final decision. This is reasonable but it should only take a couple of days or perhaps a weekend - for instance, to discuss it with their spouse. Requiring a couple of weeks is unreasonable as they have known about the role for some time and it usually means that they have other options and they don't really want to take the post you're offering but they are trying to keep it alive as a fall-back position in case their preferred job doesn't come through. This is disappointing but it happens sometimes. If this is the case, my advice is to move onto other candidates and not wait.

If the candidate doesn't verbally accept immediately, it is important that a deadline is specified for them to accept or decline the offer. So, for instance, if the offer is made on a Thursday or Friday then state clearly that the candidate must contact you by 10.00 am on the following Monday to accept otherwise the offer will be withdrawn. Remember, you need to fill the role and waiting on the off-chance of an acceptance seldom produces the result you want.

If you are asked for time to think about the role, this can be handled gently by you with a statement to the effect of:

“Okay, I can understand that. It is an important decision for both of us and it is important that you and your family are happy with the decision. I am happy to let you have a couple of days to decide but will need a relatively quick decision. You are the person I want to join me but there was another candidate who was very strong and I need to let him/her know shortly whether we are moving this forward or not. I can’t afford to lose you and the other candidate as well, so I need to close this off fairly quickly. So, if it is all right with you, would you be able to confirm 'yes' or 'no' by X day at 10.00 am?”

Presuming that's met in the affirmative, you can then close the conversation by saying something positive, along the lines of:

“Excellent, I will confirm the details of the offer in writing to you now and hopefully you will accept and then we can sort the contract out in the coming days. If you have any questions please call me and I will be happy to discuss them with you. I look forward to hearing from you and to working with you during the coming years.”

The deadline sets clear expectations and should also form part of the written confirmation to the candidate. It also helps ensure that the candidate will not feel pressurised with the decision making process.

Next Time:

We finish making the offer by looking at the written offer, what has to be given to the candidate in the contract, how to help the candidate resign from their current role and avoid a counter-offer, and how to ensure that they stay committed to starting with you throughout their notice period.

TAKING REFERENCES (PT 2)

Taking references is a key element to ensuring that you are hiring somebody who will help you drive your business forward and demonstrate good aptitude and attitude within the role.

In the previous issue we established why we take references, who to talk to at organisations for the references and how to establish if the former employer would have the candidate back if the former employer isn't willing or able to confirm any more than the dates worked by the candidate.

In this issue we look at the questions to ask in order to obtain a comprehensive reference.

How To Ensure A Thorough And Detailed Reference Can Be Taken:

When a person provides a referee they are expecting that you will be given a good reference. Usually this expectation is justified because the candidate has impressed the former/current employer or colleague, but you need to be sure.

The person providing the reference on a former employee or colleague may have reservations about the candidate but will be concerned about the potential implications of giving a poor reference. Litigation and potential confidentiality concerns are real and you need to be able to make the referee confident that any information they impart will be handled with care and discretion.

Having introduced yourself to the referee and explained the reason for the call, I suggest making a statement along the following lines:

“This reference will be treated confidentially between you and I only. I would really appreciate your candour and honest appraisal of X so that I can make the right decision with the appointment. If there are areas that are negative about X and result in me deciding not to make the appointment, I will advise X that we have hired a candidate who was a better match and leave it at that, so that our conversation remains confidential.”

The aim of this statement is to put the referee at ease and allow you to receive the answers that will help you establish whether you should be making the appointment or not. Even if you obtain a poor reference you must still comply with the assurance you made to the referee.

The Reference:

I use a generic reference form when talking to referees as I find that helps me structure the conversation and achieve the results I need.

The form can be downloaded here.

The questions I use are designed to provide me with a broad overview of the candidate and their expertise. Additional questions regarding the specific activities and behaviours that you are looking for in your candidate can be added to the ones I've suggested, so that you obtain the detailed answers you are looking for.

How To Obtain Detailed Information When Taking The Reference:

It is important to realise that the questions I use when taking references and any additional questions that you ask should each be mini-conversations. You want to avoid  asking the question, receiving a one word answer or a small statement and moving onto the next question.

Try to use 'open' questions so that “yes” or “no” are not suitable answers. Ideally, in response to your questions a statement will be made and if you then ask a follow-up question about the statement the referee will be providing the detail you require.

(This works in much the same way as the probing during the interview, discussed earlier, where you continue to probe until you are confident that you are not making assumptions about the candidate.)

Framing questions as 'closed' questions can provide a misleading reference. For instance, asking “Did X have any weaknesses?” makes it very easy for the referee to say "no" and to not provide the additional information you require, despite you setting up the conversation correctly at the outset.

That said, if you have specific behavioural questions then these can be 'closed' questions requiring "yes" or "no" answers. For instance:  “Did the candidate carry out the (specified) task?”

"Yes" or "no" is the answer you want. If the answer is "yes" then you can probe about the candidate’s particular role in the activity and how they performed it. If the answer is "no", then establish why it is a "no" if the interview provided information which led you to believe it should be a "yes".

Pauses:

Quite often you will ask a question and will be met with silence. It is important not to interject until the referee says something. For instance, “What were X’s weaknesses?”
often generates a silence, but this pause is thinking time and means that the referee is engaged in helping you with the reference.

Generally there are two types of answer that you will receive, either  "Sorry, I can’t think of any weaknesses", or some specific concerns will be revealed. Interrupting the pause could produce an answer of "there are no weaknesses" and you won't have obtained a true opinion about your candidate, again despite having set up the conversation properly at the start.

Additional Questions:

If you are taking the reference, it is likely that you are positive about the candidate and are looking to make the appointment subject to good references. If the referee has provided a good reference then ask additional questions along the lines of:

”What was the most effective way of managing X for you?”, or

“If you wanted (name the task) carried out, how would you manage X to achieve the result?”

These additional questions can provide great insight in to how to engage well with the candidate when they start with you and how to get the most out of them.

How Long Does It Take To Take A Good Reference?

Normally a good conversation about the candidate will last a minimum of 10 minutes and by the end of the conversation you will have detailed answers about the tasks and behaviours. If the referee is talkative then the conversation can last for 20 minutes and will usually end with you being very comfortable with the candidate and having no further questions.

Finishing The Reference:

Needless to say, once you've asked all your questions, be gracious and thank the referee for being so forthcoming and let them know that you will tell the candidate that they provided an excellent reference if they did; or that if you choose not to make the hire that no reference to this conversation will be made.

Next Time:

Making the job offer.

TAKING REFERENCES (PT 1)

In recent issues we have run through how to conduct the interview, deal with the most likely issues that will occur during an interview and how to close the interview.

Regarding closing the interview, I strongly recommended that you don’t make the offer at the time but give yourself the opportunity to read through the notes that you took during the meeting to make certain that you have all the information you need. An additional benefit is that this provides time to check references too.

Why Take References?

This is one of the most crucial aspects of the hiring process and will ensure that you are as certain as you can be that the candidate is the right person for you to hire. As such, references should be taken with every hire even if the candidate has been referred by someone already working for your firm.

The interview process is very strong at establishing what the candidate can and cannot do and the behaviours they exhibit whilst carrying out the tasks. The CV and the questions on the development and progression of their career will establish whether they will be a good fit, and the rapport you build during the interview will provide a good idea as to whether you will be able to work well with the candidate.

What the interview may not be able to conclusively establish is the candidate’s attitude and aptitude on a daily basis and how they deal with their colleagues in pressurised situations. What this means is that you could hire someone who can carry out the role but could create a poor overall working environment.

If handled correctly and in confidence, the candidate's references will provide the information to truly understand their attitude and aptitude and convince you to make the hire or not.  Also, they will detail the most effective ways to manage and get the most out of the candidate if you do hire them.

Which Referees Should You Be Talking To?

Always aim to take a minimum of two references, with at least one coming from the manager and one coming from a colleague who worked alongside your candidate. Personal references don’t hold any value so only business references should be obtained. The exception to this may be when someone is first starting out and has no prior work experience.

If possible, always seek to obtain references from the last two employers.

Taking references from the current employer can be challenging if the candidate still works there. In this circumstance ask the candidate: "who is there at your current employment that is aware you are looking to move and that I could talk to?"

A candidate who has worked at the same employer for a number of years will probably be more cautious as they might well have a lot to lose if the employer found out that they were looking. Under these circumstances, if the interview has provided the confirmation that the candidate can carry out the tasks you require and has the right behaviours, you would have to consider making the offer on the basis that it is subject to satisfactory references.

How To Obtain Referee Details:

This is straightforward: ask the candidate to provide the information. Ask for the name, position, working relationship with them and the contact phone numbers, ideally the mobile or, failing that, the direct dial as a minimum.

To make this easier you can ask the candidate to bring this information with them to the interview so that on the assumption that you are both happy after the interview the rest of the process can run smoothly. There can be delays otherwise, while the candidate seeks to track down the referees.

To expedite matters further it is helpful if the candidate has prepared the referees to receive the call so that they are willing and able to talk to you.

What Do You Do If You Are Unable To Obtain The Information You Require?

Society is litigious. Many managers are advised not to provide references and despite your assurances on confidentiality will not confirm more than the dates worked, or they will refer you to their HR department who will also only confirm the dates worked and also not detail what the candidate carried out in their role!

When the above situation arises with potential new recruit's manager, you do need to establish whether they are hiding behind the HR screen to avoid giving a bad reference or whether they simply feel that a strict company policy on references should be complied with. In this situation, without sounding confrontational, ask the following question:

“Okay I appreciate the guidelines you work to and will speak to HR to confirm the dates that the candidate worked with you. I have one last question so that I don’t have to class this as a bad reference - would you have the candidate back to work for you?”

The referee will understand the implication of the question and will answer “yes” if the candidate was good. An answer of “no” or “you must speak to HR” should be ringing alarm bells, prompting you to carry out thorough background checks on the candidate.

It is the role of the candidate to ensure that you are provided with referees who are prepared to talk to you. If the referees are not prepared to, then ask the candidate to provide contact details for suitable alternatives, and suggest that he/she speaks to them first to ensure that they are willing to act as referees.

What If The Candidate Advises That The Referees Are Not Contactable?

Ordinarily this should set alarm bells ringing but it can occasionally be true, particularly  for contractors. If the candidate has come from overseas you should still insist on speaking to appropriate referees and be prepared to make the international calls necessary to confirm that the candidate is who you want to hire. (Although language can be an issue here.)

If the candidate is unprepared or unable to provide referees, even colleagues, then my recommendation would be to not make the hire.

If referees are a problem but the candidate has ticked all the boxes and, from the interview process at least, appears to be the ideal candidate then if you are prepared to make an offer make it very clear that there is a probation period so you have a get-out. In countries where it is difficult to remove staff once they have started work, then my guidance again would be to not make the hire.

Next Time:

We will discuss the questions to ask referees and how to probe to obtain a really strong insight into the candidate’s performance, attitude and behaviour, so that you know you are making the best hire.

CLOSING THE INTERVIEW (PT 2)

During the previous issue we looked at how to move the interview towards a close and within this how to sell the opportunity and your company as well as answer the candidate’s questions thoroughly, especially if you are keen on hiring them.

We'll now carry on with the remaining elements of closing the interview effectively so that you maximise the likelihood of the candidate taking-up the offer if you decide they are the right person for the post.

Establish What Else Is Happening For The Candidate:

Both parties have had an open and frank conversation. Now is the time to establish where the candidate stands in relation to other options so that you know if you have to do more to secure them, if you want them. Ask the following questions and probe further if the initial answers aren't clear:

Where do you stand on your other options at the moment? Assuming they have other avenues they're pursuing, you want to understand how far down the line they are and when decisions are likely to be made. If the answer is that they have no other options at present then it is easy to move on.

If they have other options and you have established the timelines, ask “based on what you have heard about our opportunity and X opportunity (you have to ask where you stand in relation to each option they may have) what are your thoughts about them?”

This is a non-confrontational way of establishing where you stand and finding out whether the opportunity you're offering is being perceived as better than the alternatives or not as good. It is much better to know where you stand even if you don’t like the answer.

Once you have run through the other options, or if the candidate has said there are none, there is one more key question to ask: "If you were to take our role and resign from your current employer how will they react?"

There are a number of reasons to ask this. Firstly, it is to try and establish whether the candidate will be expected to work their full notice, a proportion of it or whether they will be released immediately. More importantly, if they know (or suspect) they are valued by their existing employer, they might also know there is the potential of a counter-offer being made. Loyal employees find such offers difficult to turn down, even though their current employer is only reacting after they resign and merely assuming they are happy rather than actively looking after them up until then.

I will come back to this issue in a future article as it is broad and a few, simple-to-teach sales techniques can turn these situations around. If you are in a position at the moment where guidance would be appreciated, email me in person and I will be pleased to help.

Run Through What Will Happen Next:

This is simple and just literally does just mean telling the candidate what will be happening next and when.

For the candidate that you are interested in, I suggest stating that you are very impressed and think they could be a good fit but just need to run through your notes, and that you will be in touch by XXX time or date.

For the candidate you are not interested in or are not sure about you can either:

a/ conclude the meeting there and then and, rather than maintain their expectations, explain where they were not quite what we were looking for. It is very important to be professional and polite about this as they can still market your company.

or

b/. Answer in the same way as for the candidate you were interested in.

My preference is to be upfront but you can run with whichever scenario sits most comfortably with you.

Whatever your thoughts about the candidate, it is vital to treat them professionally and with respect - in the same way as you would want to be treated. You want a positive message out there about you and your company and you never know when your paths may cross again. If circumstances change in the future, you would like them to be a 'yes'.

The interview is effectively concluded now, so ask for any more questions from them and thank them for their time, reiterate that it was good to meet them and - if appropriate - reassure them that you will be in touch by the agreed time.

Next Time

Referencing before making an offer.