Why You Shouldn't Make an Offer Unless It's a Done Deal
If an employer has ever had an offer rejected or a candidate reply with "I'll have to think about that," it means the offer was made too early. This is a basic principle all employers must follow: "Never make a formal offer until it has a 100% chance of being accepted. Try proposing options and checking the candidate's reaction, modifying the options and continuing to check their response until the candidate agrees, and then make a formal offer."
As we all know, candidates use offers to negotiate counteroffers or other terms, especially in hot job markets with scarce candidates for certain positions.
By testing offers before presenting them, you'll be in the last position to modify the offer, minimizing the chance of rejection. While you want candidates to have reasonable time to consider the offer, you also want to know what they're thinking, and they'll only tell you this before a formal offer is made.
Begin the testing process after the first interview by asking, "Based on what you know about the current job, is this a position you'd seriously want to pursue?" Of course, there's more to discuss, but assuming the answer is "yes" and you've successfully moved the candidate through multiple interviews, quickly move to testing the final offer.
At the final offer stage, ask the candidate: "Based on what you know about the current job, would you be willing to accept if a fair offer was proposed?" If they hesitate at this stage after previously expressing serious interest, they may have obtained a better opportunity.
In this case, the employer needs to find out what that is before making an offer. Try addressing their concern by saying: "To me, it seems like you're a bit reluctant to move forward. This is surprising given all the interviews and effort from both you and others in the company so far. What questions do you still have that I could clarify for you?"
The Key to Validating a Candidate's Biggest Concern
You must discover the actual issue. Sometimes what a candidate tells you at this late stage is misleading in an effort to conceal the real problem (a better offer, doubts about the job or hiring manager, objections). To validate the concern, you can use a sales technique called "closing the concern."
It goes like this: "If we could address that issue satisfactorily—which I'm not sure we can but if possible—would you then agree to (schedule next interview, meet hiring manager, take assessment, start on a certain date)?"
Most candidates will be willing to continue with the company if their biggest concern is addressed. If not, you'll need to keep exploring the candidate's concern to determine if you can "save" the situation. If possible, you'll likely need to bring up compensation. When presenting a reasonable compensation number, check the candidate's real interest in accepting by asking something like "I'm not sure the company can pay the salary you want, but if they could, when would you be able to start?"
This follow up or closing question is meant to identify if they still have something else bothering them. So the employer needs to go back and uncover what that is before proceeding further. Once resolved, you can negotiate compensation with them.
Determining if the Issue is the Company vs. the Actual Job
If compensation becomes an obstacle, set it aside by telling the candidate "Put aside the salary issue for a moment and tell me if this is truly a job you want or not. If not, we should stop right now because no matter the salary amount, we won't be able to agree. This technique allows you to determine if the job itself is problematic in some way versus just being a salary issue.
For more on this important topic, there is a full guide on negotiating offers available. But the key point employers must remember is to vet all aspects of an offer before presenting it to a candidate. This vetting should include everything from salary, benefits package, vacation, training, bonuses, options - anything you can think of. Don't assume anything. Often small details like an extra vacation day or dental reimbursement could cause an offer to be rejected or create unnecessary bargaining.
You should never be surprised by a rejected offer. Even better, if you vet everything as described, they will all either be accepted or you won't make the offer at all. When in doubt, remember the first hiring principle: never make an offer unless you're 100% certain it will be accepted.
(According to LinkedIn)
