Offer Negotiation


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Offer Negotiation

  1. 1. Offer Negotiation<br />Candidate Experience<br />Presented by Blake Cai<br />June 13, 2009<br />
  2. 2. Schedule<br />Introduction of Win-Win Offer Negotiation <br />Scenario Study I<br />Offer Negotiation-Preparation<br />Scenario Study II <br />Offer Negotiation-Engagement<br />Scenario Study III<br />Offer Negotiation-Closing<br />Q&A<br />
  3. 3. What means Negotiation?<br />Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. <br /> -”Wikipedia”<br />During offer negotiation process, staffing consultant helps to reach a trust based “Win-Win” situation between employer and candidate by focusing on his/her circle of influence.<br />
  4. 4. Win-Win Offer Negotiation Model<br />Trust<br />
  5. 5. I. Offer Negotiation-PreparationUnderstand Employer’s and Candidate’s Offers and Needs<br />Scenario: we find a simple profile on LinkedIn. It probably fits for a L62/L63 SDE position for Beijing Healthcare team. The candidate has more than 8 years exp. in healthcare industry, both oversea and domestic. He just came back from US 2 years ago. Currently is working for a start-up company which is located in SH.<br />Question: What will you explain to candidate? What will you ask candidate in the phase of HRPS to help you close the deal someday?<br />
  6. 6. Preparation-Understand Employer’s Offers & Needs<br />An offer negotiation process does not start after a hire decision is made, it actually starts from the Requisition Review meeting with your client.<br />Understand Employer’s (Hiring Team) Needs<br />Core Value<br />Level (CSP)<br />Technical Requirements<br />Target Company<br />Ideal Candidate Profile<br />Team structure/project situation<br />Understand Employer’s (Hiring Team) Offers<br />Budget for International Candidate<br />Budget for Relocation<br />Budget for Soft Landing Package<br />Pay (Salary, Variable Pay, Recognition, Stock)<br />Benefits & Perquisites<br />Learning & Development<br />Work Environment<br />Product & Technology<br />Job Scope & Impact<br />Culture<br />People Quality<br />
  7. 7. Preparation-Understand Candidate’s Offers & Needs<br />Understand Candidate’s Offers<br />Check candidate’s background and ask core value based questions to decide whether he/she is worth further probing. <br />Let candidate talk about what value they can bring into Microsoft and the team during initial screen.<br />The exact offering from candidate will be evaluated through interview process.<br />Understand Candidate’s Needs<br />Do we understand what candidates want?<br />How can we get to know the real needs of candidates?<br />
  8. 8. Ask yourself in mind, according to your observationwhy Chinese local senior talents join Microsoft?<br />In a recent survey, L62+ employees who were hired locally chose top 3 factors which motivate them to accept Microsoft offer.<br />We might have the stereotypes such as Chinese talents, esp. senior talents are very compensation sensitive when considering an offer, however, the survey result shows that only 1/3 think compensation is among the top factors to be considered. We might think work life balance is not that important for those who are considering Microsoft offer, but a significant 12.5% join Microsoft partly because of this!<br />The top motivators are diversified with none taking the dominance. Thus it’s important to know your candidate’s motivators before making, presenting and negotiating an offer.<br />NEVER take any ASSUMPTION!<br />
  9. 9. How can we get to know candidate’s needs?-Probing Questions<br />Always ask candidates the following questions during initial HR screen<br />Why do you want to change your job? (Try to find the real leaving reason and overall satisfaction level.)<br />What are you satisfied with your current job? (Candidate usually would like to keep what they already have.)<br />What are you dissatisfied with your current job? (These are usually the biggest motivations.)<br />What are your expectation of your next job? (Instead of asking them salary expectation, ask them an overall expectation of a job.)<br />Why do you want to join Microsoft? (Learn their impressions of Microsoft and passion for our technologies and products, sometimes candidate might have a wrong impression of Microsoft which needs to be fixed during the process.)<br />Who besides you are likely to have the influence on your career decision making? And why? (Candidate himself is not necessarily the only decision maker on a job offer, try to find out other decision makers such as spouse and parents, get noticed and involved as early as possible.)<br />Ask more if candidate needs to relocate<br />What might prevent you from relocating to a new place? (Parents? Spouse? Children? Real estate?)<br /><ul><li>Candidate’s needs are changing sometimes. Every time you speak with the candidate, find out what has changed since you last spoke and if anyone else is involved in the decision making process.</li></li></ul><li>II. Offer Negotiation-EngagementBuilding Trust Relationship<br />Scenario : The candidate pass the phone interview. Hiring manager wants to bring him to Beijing for a 2 days on-site interview, totally 8 rounds of interview. 3 rounds are VTC. The candidate didn’t interview any positions for a long time and not familiar with Microsoft interview process. He has some concerns about the long interview loop.<br />Question: What you will do to build up trust relationship between you and candidate and make him feel comfortable?<br />
  10. 10. What is missing among these candidate’s complaints?<br />My recruiter is lying sometimes anddisrespectpeople at low level which pissed me off. <br />Ensure that the initial exhilaration and enthusiasm from first level phone interviews is somehow maintained. The first level interviews went very well and therefore I am greatly surprised that the final job offer was such a complete disappoint.<br />Would be cool if they can advise interviewee on things like reasons for delay of delivery of an offer.<br />The interview duration take too longtime, it took 1 month from the initial HR call till I got the final offer.<br />I found out that some promises from the recruiter during offering stage turned out to be liesafter my on-boarding.<br />There will be no win-win between candidate and Microsoft if TRUST is not built between candidate and the ambassador of Microsoft, staffing consultant, during offer negotiation process.<br />
  11. 11. How to build TRUST with candidate?<br />Set expectations, make commitments and keep them<br />Be Knowledgeable<br />Mastery of all relevant information, processes, policies etc. <br />Be Honest <br /> Never exaggerate and over promise, be real. Let them know what we can do and what we cannot. <br />Be Consistent <br /> Same attitude and passion through whole process regardless of results.<br />Be Prompt <br /> Follow up within 24 hours, always keep candidate posted.<br />Be Helpful <br />Be candidate’s confidant and counselor. <br />Be Empathic<br /> Be nice, show empathy to candidate’s concerns and needs.<br />If candidate trust you, they are more likely to tell you their real needs and concerns, and less likely to play any under table trick. <br />
  12. 12. Offer Strategy & Closing Techniques<br />III. Offer Negotiation-Closing<br />Scenario: Hiring manager decided to offer candidate L63 Sr. SDE position. Given his current expatriate package , offer a soft landing package in the relocation benefit. But even including soft landing, the total package is still less than 5% of his current on a rough number. But 40% of his current package comes from bonus.<br />Question: what’s your strategy to close this deal?<br />
  13. 13. Offer Strategy-Prioritize Needs & Focus on the Circle of Influence<br />Circle of Influence<br />Understanding of Microsoft compensation guidelines<br />Understanding of local tax regulations<br />Understanding of work environment & culture<br />Understanding of learning & development opportunities<br />Hiring manager’s influence<br />Relevant employee’s influence<br />Industry celebrity’s influence<br />Escalation to staffing manager/director for exceptional approval<br />Category of Needs<br />Compensation<br />Benefits<br />Perquisites<br />Learning & Development<br />Product & Technology<br />Family<br />Location<br />International Exposure<br />People Quality<br />Find out what are the TOP NEEDS of candidates through probing, and work out an OFFER STRATEGY focusing on the area of influence accordingly. Example, if the candidate is compensation driven, take advantage of the wide pay scale and strengthen the Pay For Performance philosophy. If the candidate is family driven, introduce more about the flexible working hours and comprehensive benefit system. <br />We are not going to meet all their needs but only those matter most to them! And leverage on Microsoft most valuable asset, PEOPLE, to help you close the offer.<br />
  14. 14. Closing Techniques<br />Closing is a process finding common interests between employer and candidate.<br />Before interview, let candidate know<br />Hiring needs/requirements<br />Job content (explanation of roles/disciplines, team & product)<br />After interview but before making offer, congratulate candidate and <br />Ask him/her whether he/she feels interested and passionate about the opportunity so far.<br />Inform him/her we will closely work with him/her on the offer with hiring manager.<br />Confirm his needs/expectations and check whether there is any difference compared with the original needs/expectations.<br />Ask them whether they have any other offers and get the details of that offer if possible.<br /><ul><li>When delivering the offer</li></ul>Explain the total package (compensation, benefits, perks) and send a written memo together with the offer letter to candidate afterwards.<br />Leave time for them to talk about their concerns and ask questions.<br />Have an agreement on a reasonable time frame to consider the offer.<br />Let them know the circle of your influence. <br />Ask them whether there are anything you could help.<br /><ul><li>After delivering the offer</li></ul>Involve hiring manager and hiring team in communicating and closing. <br />Suggest and help candidate to connect with Microsoft employees.<br />Using your channel to understand the candidate’s exact position (example, if he has a close friend in Microsoft)<br />Leave enough time for candidate to consider the offer, NEVER PUSH!<br />Be prepared for a counter-offer if he/she is a super star.<br />It’s better to go NO DEAL than having candidate accept the offer reluctantly.<br />
  15. 15. Q&A<br />Thanks for Attending!<br />Welcome Questions!<br />