11

Making a Job Offer

John Armstrong, vice president of news at Contra Costa Newspapers, Inc., said, “To paraphrase Winston Churchill, never, never, never, never compromise. The bad hire was the third choice after two others were not hired. I compromised because the search was taking inordinately long. My experience reminded me that no hire is better than a bad hire.”1

During the hiring process, the recruiter or hiring manager should have learned what it will take to get this candidate to say yes. If you are using an executive search consultant, he or she will work with you on developing an offer to meet the identified needs of the candidate. Some of the issues that may be important to a candidate include:

image    Commute.

image    Salary.

image    Incentive compensation.

image    Time off benefits.

image    Flexible schedule.

image    Opportunity for work/life balance.

image    Health and other benefits.

image    Ability to progress in the organization.

image    Training and development opportunities.

image    Availability of coaching and/or mentoring opportunities.

We highly recommend that the hiring manger make the verbal offer and then follow it up with a written offer letter, which should be emailed immediately and a hard copy sent via USPS. Some organizations ask HR to make the verbal offer and/or send the offer letter, but it is much more impactful if the hiring manager does it. The applicant really gets the impression he or she is valued, and it may make a difference in whether or not he or she accepts. Of course, HR can draft the letter and handle the logistics of sending it and tracking the response.

You may want to draft a form offer letter and have it reviewed by your labor attorney before use. It should:

image    State your enthusiasm for this candidate to join your firm.

image    Address all variables of the offer including:

image    Start date.

image    Starting salary.

image    Incentive compensation, if applicable.

image    Contingencies, such as the candidate’s references must check out, or he or she must pass the drug screen.

image    Benefits summary (or use an attachment).

image    Reporting relationships.

image    Date offer expires (usually three to five days from date of offer).

image    Place for candidate to sign if he or she accepts.

Relocation

It is increasingly difficult to relocate people today due to the realities of the real estate markets. You should develop a policy to cover relocation. To do so, answer these questions:

image    Will you pay to move the employee’s household goods from one location to your location?

image    Will you include full packing services?

image    Will you cover unpacking in the new location?

image    Will you pay closing costs on the new home?

image    Will you pay to relocate cars? Boats?

image    How much temporary housing will you cover, and for how long?

image    How many house-hunting trips will you cover, and for how many people (employee and spouse, or will children be included in one trip?)?

image    If the employee’s current home doesn’t sell in a reasonable amount of time, will your firm purchase the house?

image    If the employee needs a bridge loan, will you offer that or refer him or her to a local bank?

image    If the employee resigns within a period of time (you determine how long), what percentage, if any, of moving costs will he or she be required to repay?

This is just a snippet of the issues around relocation, so approach it carefully and get advice from relocation specialists.

Discussion Questions

1.    Who is recommended to make the job offer and why?

2.    If a verbal offer is made, is it necessary to confirm in writing and why?

3.    What are some of the topics a candidate may want to negotiate?

4.    Name some of the areas where you may have some flexibility when making an offer.

5.    At what level are employment contracts more common?

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