Negotiating Client Tactics and Demands

Principles for Recruiting •  “Easily won concessions are rarely valued and always result in additional demands.” •  “You can not concede your way into a collaborative relationship.” Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Cause and Effect •  Negotiation •  Selling •  Relationship •  So goes the relationship, so goes the negotiation, so goes the sale! Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Your Key Client •  Identify your best key client organization (depth and breadth) •  Identify your primary relationship within the organization by title •  Identify three additional relationships within the organization by title Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Three Levels of Negotiation NEEDS are So the primary perceived to be. . . MOTIVATION is. . . inter- optimal return dependent for both Collaborative compatible fairness and equity Cooperative in conflict victory or advantage Competitive Acclivus Corporation. All rights reserved Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Influencing Behavior Behavior (act with) Treat Attitude (think, feel, value) Regard Perception (see) Awareness (notice) Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

The Competitive Level •  Life at the competitive level: the client sees conflicting needs and uses tools called tactics •  These tools are used by your clients to influence your perception of what it RIGHT and what is FAIR. Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Customer Tactics Negotiating 101 Fait Accompli Tease Messenger Hoops Control Flinch Fritz Never Get Approved Square One Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Customer Tactics Violins Competition Carrot Mine Field Foggy Memory Third Party Pressure Deadline Nibbling Fair and Reasonable Butter Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Counteraction Recognition •  The purpose of identifying and recognizing the top 20 tactics is to take their power away or at least gradually reduce their effectiveness Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Counteraction Prevention •  Multiple relationships at different levels of the organization •  Thorough qualification to prevent tactics and demands •  Put it in writing and get it in writing •  Manage client and candidate expectations from the beginning / Early exclusions •  Get face to face with key players Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Counteraction Counter tactics •  Fair and Reasonable •  Never Get Approved •  Fait Accompli •  Deadline •  Competition •  Inside Information •  Third Party Pressure Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Counter Tactic Example Client: “I can’t always respond to you right away. I am working with a number of candidates from different recruiters who seem equally qualified and want less money.” Consultant: “I understand your challenge. I also have several clients with an interest in this specific candidate. All I ask is that you be fair and reasonable with my candidate by responding back to me with either a yes or no response within 24 hours.” Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Counteraction Disclose feelings •  The disclosure of a personal feeling - surprise, disappointment, confusion, regarding a statement made by a client or candidate, or a position they have taken on a specific issue •  Asking the client or candidate to “help you understand” the statement or position Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Disclose Feelings Example Client: “I have been reviewing some of the details of your search agreement over the weekend and after closer inspection, I have come to the conclusion that the fee percentage you are asking for this search isn’t going to work with our budget for recruiting.“ Consultant: “John, this takes me by surprise. I am somewhat disappointed to hear you say that after our numerous conversations. We reached an agreement last week and you asked me to begin our search efforts ASAP under the assumption that you would send the contract over within 24 hours. Can you help me understand what specifically happened to create this last minute change?” Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Counteraction Legitimacy •  Your Reputation: How are you regarded? •  Your Expertise: What makes you legitimate? •  Your Policies: What makes your firm legitimate? Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Legitimacy/Reputation Example Reputation: “As you may be aware, the Texas Business Journal recently named us among the best firms for both client and candidate satisfaction in regards to producing results and filling searches for the fourth year in a row.” Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Legitimacy/Expertise Example Expertise: “I know it is tempting to offer a candidate a lower starting salary given the current economic climate. I have placed over 15 Senior Tax Accountants in this exact role over the last two years, all in a range where the their minimum salary was well over $10,000 more than your current offer. It has been my experience that you will either lose this candidate to another opportunity or they will leave within two years as they discover their actual value in today’s market place.” Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Legitimacy/Policy Example Policy: “Our organization’s policy on payment terms of net 10 days is firm as stated in our contract. Furthermore, it is our policy that our Performance Guarantee on this candidate is only valid if the placement fee is paid on a timely basis as stated in our agreement.” Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Counteraction Clarify/Justify •  Clarify by establishing the difference between your service and client perception of similar services •  Justify by establishing the value of your service or approach in terms of meeting your client’s needs •  How we are similar to…. •  Why we are different from…. •  The reason this approach is better than…. Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Clarify/Justify Example Client: “We will only pay 20% on this candidate. He has too little experience to pay a full fee, especially when we already see many resumes and candidates at that level.” Consultant: “I should clarify that our fees are based on an individual’s compensation upon hire, and our our fee with this candidate is reflective of his experience and entry level compensation. That being said, our fee has already been reduced by the compensation you set for this level of candidate.” Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Client Demands 1. “Fees too high - we only pay ___%” 2. “Performance guarantee with money back” 3. “You must go through Human Resources” 4. “You must follow our process for hiring the candidate” 5. “I must see multiple candidates before making a decision” Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Counter Demands 1. Exclusivity 2. Faster payment cycle 3. Referral/testimonial letter 4. Meeting with the Director/VP 5. Retainer Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Framework For Negotiation DEMAND or Request Listen and Acknowledge Clarify/Expand “yes” “no” Conditional Concession Non-Concession w/rationale w/rationale Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

For more information on Next Level programs contact: Rob Mosley Sr. Director of Training and Development Rob@nlrtraining.com 214-556-8015 Proprietary and Confidential - Copyright 2009, Next Level Recruiting Training, LLC

Negotiating Client Tactics and Demands

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