One of the most crucial points in recruiting is the offer conversation.
This step can make or break your success in securing top talent.
In this week’s episode of “Recruiting Conversations,” I dive into how to handle this conversation effectively to increase your offer-to-start ratio significantly.
Here’s the lowdown:
Understanding the Gap
When consulting, I always look at the gap between offers made and candidates who actually start.
It’s common to see a 20-35% gap from offer to start.
This gap represents a huge opportunity for improvement.
Here’s how to bridge it:
Different, Not Better
Most leaders make the mistake of competing on better compensation, better benefits, or better support.
Instead, focus on being different.
Different is better than better.
Present an opportunity that stands out from the rest.
Setting the Stage
Before diving into the offer, establish credibility and re-establish rapport.
This meeting should be about building and reinforcing the relationship.
Understand Their Dream
Never have a compensation conversation without knowing the recruit’s big dream and why it’s important to them.
This understanding allows you to tailor your offer to their personal and professional goals.
Create Alignment
Find common ground.
Highlight shared values and interests.
This alignment builds trust and makes your offer more compelling.
Gain Permission
Ask if they are open to receiving an offer.
This step builds trust and ensures they are ready to consider your proposal.
Your Belief System
Define your beliefs around compensation.
For example:
Fair Compensation: Ensure it’s fair for both parties.
Compensation Bridges: Build bridges to mitigate the risk for recruits transitioning to your team.
No Sign-On Bonuses: Focus on long-term value and support rather than short-term incentives.
Presenting the Offer
Never send a blind offer.
Always present it live, ideally face-to-face or via video call.
This ensures clarity and allows you to address any questions immediately.
Next Steps Agreement
After presenting the offer, gain agreement on the next steps.
Schedule a follow-up to discuss any questions and solidify the decision.
Document the Value
Create a separate document outlining all the additional value you bring as a leader.
This can include coaching, marketing support, and other unique benefits that set you apart.
By mastering the compensation conversation, you can significantly reduce the gap between offers made and candidates starting.
This approach will multiply your success in recruiting over the years.
Let’s bridge that gap and secure top talent.
