Perspectives

This iconic quote from the movie, The Godfather, spoken by Marlon Brando as Vito Corleone, initially sounds like a business conversation.  But it's a threat, not a negotiation.

A negotiation is a discussion where parties express their positions and concerns with the goal of finding common ground. As you prepare to extend a job offer to an executive level candidate, thoughtful negotiation can be the difference between landing top talent and losing out to competing opportunities.

Sockwell has helped clients make well over 1,000 offers in our firm's history. We've witnessed a wide range of negotiating styles.  Some hiring executives try to start close to their top range with a "take it or leave it" perspective.  Others try to start low and make a game out of the negotiation.  All negotiation styles say something about your organization. Candidate responses also tell us a lot about motivators and fit with your culture.

 From our experience, we offer the following insights and suggestions.

Do your homework: explore what matters most to the candidate. Preparation often determines outcome.

Put the entire package on the table: base, bonus structure, equity, performance incentives, comprehensive employee benefits available and work-life balance resources.

Personalize the offer: while compensation is always important, don't underestimate the value of leadership and strategic influence opportunities, your organization's culture, professional development, enhanced autonomy, potential growth trajectory or anything else you think will matter to this individual candidate. Most importantly, let them know how much you want them on your team.  We generally recommend the hiring executive (or board chair) personally make the offer (and then we can play a role quietly listening to each side's perspective).

Listen, be authentic and fully present. Be flexible, creative and open to candidate suggestions that you may not have thought of or used before.

Never forget the "F" word. Seek fairness from both perspectives.

Don't underestimate likability.  Remember that a cooperative style is almost always more successful than hard-core bargaining.

Relationships can matter far more than tactics.

And take the advice of Maverick Carter (long-time friend and manager of LeBron James' multi-billion-dollar business interests) to heart:

     "Once we're done negotiating, we have to go off and work together."

We hope you find these ideas helpful.  We'd love to hear more about your offer negotiation style.  What has worked well for you?