The Perfect Job Offer

by Karen Alphonse, Vice President, execSearches.com

Many people think that the perfect offer revolves around a high salary. To be sure, a high salary is a fabulous incentive. Strong leaders demand competitive salaries. However, this is just the tip of the iceberg. A truly fabulous offer balances the company's operating budget as well as an incoming leader's need for growth, stability and competitive compensation.

Before extending an offer, as employer you need to do some in-depth homework. Ask key questions about the role you are going to fill. Make sure that organizationally and financially the company is ready to embrace the new professional. A competitive salary, plus workable internal politics, financial stability and growth potential will create a dream opportunity for a deserving professional.

ORGANIZATIONAL ISSUES

• Some of the questions you may want to ask include the following:
• Are the reporting relationships in order?
• Does the new professional have adequate support to be successful?
• If the professional exceeds expectations are there logical places in the organization for that person to be promoted?
• What about professional development?
• How and when will the company encourage growth and skill-building? Is there a budget for seminars, workshops, professional memberships, tuition reimbursement etc.?
• If you are filling a position previously held by another professional, are loyalists still in place? Is there room for a new professional with new ideas?
• Has the old staff been prepared to receive the new leader/professional?
• What kinds of transition plans have been made to accommodate the new leadership? If, as you ask these questions, you encounter serious barriers to successful leadership you may want to figure out how to address these concerns prior to arrival of the new leader.

FINANCIAL ANALYSIS

• Is the company financially able to meet salary and future regular bonuses and cost-of-living increases?
• If you are a grant-funded nonprofit, for example, have you made provisions to support salaries during periodic income lows? Do you have strategies in place to regularize earnings during inevitable fundraising peaks and valleys?
• If it is a start-up or young enterprise, do you have a line-of-credit or other cash-flow back-up in place?
• If the leader is a fundraising professional, what kind of timeline have you established before the money needs to come in? Are your timelines realistic?
• Is the company in a position to offer merit bonuses or other incentives to the new employee?
• Is the company compensating similarly-situated professionals equitably? If there are compensation gaps, can these be explained by objective data?
• Is there room for upward financial mobility within the company? Is there a long-term path for financial growth with the company?

Although most large companies will have some gaps in compensation, these are usually explained by multiple locations, different pay-scales and regional operating rules etc. Smaller companies and most nonprofit need to exercise care in this regard. Wide differences in salary/compensation can kill morale -- particularly if there is no reasonable explanation for them. Similarly, inconsistent financial policies at the management level will tend to bread discontent in the ranks. Consistency, within reason, is always the best policy. If you find any discrepancies, company-wide, or between categories of leaders at the company, it is best to address these issues before extending an offer to an incoming leader. Sometimes innocent gaps can become a hurdle to negotiation. At other times, they can create an invisible breach between colleagues, once they become known. Always assume that confidential information has a way of leaking out, especially if it comes with the appearance of being random or of reflecting some kind of favoritism. In any event, inconsistency begs questions and can lead to disgruntlement. Try to ensure, within reason, that executives at the same level receive substantially similar compensation. This will also minimize the incidence law-based challenges.

BENEFITS REVIEW

• Is your benefit package competitive? (You may need to research other companies in your operating region and industry. Also, if you are a nonprofit entity you may need to balance a modest salary with outstanding benefits. Time spent analyzing and improving benefits is a worthwhile investment in the leadership stock of your enterprise).
• If so, is there room to enhance the package to beat the competition?
• If not, which precise features -- matched savings, tax benefits, annuities, pensions -- need upgrade? Can you make the necessary improvements prior to extending the offer?
• In either event, is there a logical basis for the benefits which you offer and consistency in your offering?
• Is there room for a deserving leader to negotiate/pay for a more extensive package?
• How open is your organization to customized benefit packages? Do you have the infrastructure to support individualized arrangements?

Knowing how your basic benefits package works, its strengths and its weaknesses helps you to craft a winning offer for the candidate of choice. You may also want to run any modifications by your company's attorney and tax planner, prior to extending the offer. Sometimes, subtle differences in benefit policies can create multiple tax and legal issues. You will want to test the nuances from every angle prior to making the offer. There is nothing that kills a deal as quickly as having to retract or modify a dream offer --after is has been made. Be sure that the offer you make will withstand scrutiny and has been crafted to meet your state's most stringent operating requirements.

EVALUATION AND QUALITY ANALYSIS

• You will also need to be honest about setting up clear performance benchmarks. In exchange for your "dream offer," you should expect outstanding performance from your new leader.
• Have you discussed, in fair detail, what your concrete expectations are?
• Have you designed your employment agreement, contract or discussions with clear performance criteria in mind? *Have you confirmed that the candidate is aware of your expectations?
• Have you discussed an evaluations and review process?
• Has the candidate agreed to this proposed process?
• Are you organizationally prepared to review and evaluate the new leader appropriately?

When the pressure to land the dream candidate builds and expectations are high, pause for a while to prepare your "dream offer." The extra effort will pay off across the board. Not only will you be able to lure your next leader on board, you will do so knowing that he or she has every reason to succeed and that his peers will support his efforts. This is a formula for success.

by Karen Alphonse, Vice President, execSearches.com