After an extensive search and evaluation process, you have identified a suitable candidate for the position. The next step in the hiring process is to extend an offer of employment to the selected candidate. At this stage, it is essential to act promptly, proactively contacting the chosen candidate, drafting an offer letter, considering a counteroffer if necessary, and conducting pre-employment checks. This is a complex process, and it is crucial to handle the offer with care. The following article provides guidance on key considerations.
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Don’t Delay
A lengthy recruitment process is a significant factor contributing to the failure of hiring organizations to attract high-quality candidates. According to global talent services company Morgan McKinley, 48% of job applicants decline job offers due to the prolonged hiring process.
It is recommended that, where possible, the candidate who has been selected for the role should be contacted shortly after the final interview (one to two days after the interview). This approach demonstrates to the candidate that the organisation is genuinely excited to have them on the team, while simultaneously alleviating the stress and anxiety that naturally follows a job interview.
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Make An Offer Over the Phone
Prior to drafting the official letter, it is advisable to contact the candidate directly to ascertain their continued interest in the position. They may have accepted an alternative role or may have other reasons for withdrawing their application. This provides an opportunity to confirm their continued interest in joining your organisation and to discuss the offer in more detail, including any potential negotiation around the compensation outlined.
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Prepare And Send an Official Offer Letter
The majority of companies offer positions verbally by phone and then provide an official letter or email to confirm the details. This avoids a lengthy gap between the interview and the offer. It is essential to have a standard job offer letter as a template that can be adapted and reviewed by legal counsel. The following information should be included in the offer letter:
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The candidate's full name
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What their official job title will be
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The formal start date (and the end date if it’s a temporary position)
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Whether there are any conditions the offer is subject to
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Any actions that the candidate needs to take prior to starting
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Set a Deadline
It is advisable to set a time frame for when you expect to receive a decision from the candidate. A period of approximately one week should be sufficient for them to consider the offer in detail. Once the candidate has checked the accuracy of all the details in the offer letter, they should sign it, make a copy for their personal reference and return the signed copy to you.
As an employer, it is advisable to retain the candidate's signed letter on file in the event of any future disputes. It is important to note that this is not a legally binding contract of employment and that either party may still withdraw from the process.
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Stay Connected
While a candidate is considering an offer, it is advisable for the hiring manager or yourself to maintain contact with the candidate, particularly if you are using multiple or panel interviews. This will help to reinforce your enthusiasm about the candidate potentially joining your team.
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Know How to Negotiate Salary
Once an offer has been extended to a candidate, the subsequent response may result in one of three potential outcomes:
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Candidate accepts your offer. Finalize the relevant details and mark the position as filled. Meanwhile, provide the candidate with the appropriate details and information to enable them to proceed.
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Candidate declines your offer. There are several options depending on workload, preference, and company policies. Cut losses and move on to the next candidate; or ask candidates for more information or ask to match a competitor's offer.
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Begin the salary negotiation process. Many recruiters and candidates perceive the negotiation process as a zero-sum affair, whereby one party's gain is another's loss. It is therefore important to seek a balance between salary, compensation and benefits.
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Decide How Far You're Willing to Go in Negotiating Salary
The initial stage of the negotiation process is similar to that of other forms of business negotiations. If the candidate presents a higher figure than the initial offer, the option is available to increase the amount of the proposal or maintain the original offer. If the candidate persists in their demands, the decision to exceed the established range is dependent on two factors: the level of interest in hiring the candidate and the policies and precedents within the company. Before making any promises, it is essential to consider three key questions:
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In the event that there are other equally qualified candidates available after the applicant declines, the organisation has the leverage to make the necessary accommodation.
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In the event that a position has proven particularly challenging to fill or that market conditions are creating difficulties in identifying and recruiting suitable candidates, the candidate may have leverage in the process.
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If a more generous offer is considerably above the current pay scale for similar roles within your company or the hiring manager's department, it could have an adverse effect on the team spirit and perceived fairness of the compensation structure.
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Clarify Acceptance Details
Once a promising candidate has accepted your final offer, it is important to ensure that all details have been clarified before proceeding with the next steps. It is essential to confirm the acceptance details of the offer, including the following:
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Position title
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(2)
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Hiring manager's name’
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Salary (including bonus or commission information) and benefits eligibility.
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Paid time off (and eligibility)
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Start date
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Schedule (expected start and end times)
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[1] Andrea Butcher. Human Resources Kit. John Wiley & Sons, Inc., 2023.