The margin for error for employers in this current market is razor thin. If an organization wants to successfully hire the best candidates, then that organization can not make too many mistakes during the interviewing and hiring process. In fact, it would be in its best interests if it made NO mistakes.
However, being perfect is not feasible. But what is feasible is avoiding the biggest mistakes associated with hiring the best candidates. And one of those mistakes is the cardinal sin of low-balling the offer.
Why is it a cardinal sin? For many reasons, but let’s put the situation within the proper perspective.
#1—The offer stage is arguably the most important part of the hiring process.
Think about it. You have the candidate you want to hire. First, you identified them as a top candidate. Then, you convinced them to consider your opportunity and also to enter your organization’s hiring process. Then you effectively engaged them and kept them in the process. Now you have the chance to hire them! And it all comes down to the offer that you make.
#2—Your offer brands your organization in the mind of the candidate.
Just as personal branding is important for job seekers and candidates, organizational branding is important for employers. The type of offer you make to a candidate sends a message. It says something about your organization and about how it approaches hiring and employment.
If you try to low-ball a top candidate at the offer stage, they might start asking themselves questions. And these are questions that you don’t want them asking. They include the following:
- Is this offer an indication of how the organization values its potential employees?
- Is this offer an indication of how the organization values its current employees?
- If I join this organization, what kind of raises can I expect? Only moderate, cost-of-living raises?
- Does the organization value “cutting corners” over practical business development strategies and practices?
- What kind of turnover rate does this organization experience?
So not only might the candidate decline your offer, but they could also tell everybody they know about their experience with your organization. That is poor organizational branding.
#3—If you’re dealing with a top candidate, they might have multiple offers.
This is another harsh reality of this current market for employers. Top talent is in such demand within many industries that candidates are interviewing with multiple companies and some are receiving multiple offers. In fact, there are candidates who expect to receive more than one offer. So if you try to low-ball them with your offer, they’ll simply decline it, confident in the knowledge that they will soon receive another, more attractive offer. In fact, that offer might come from one of your competitors.
This is not the year 2008. The Great Recession is long gone. There is a shortage of skilled workers in the marketplace and an even greater shortage of superstar candidates. If you have an important position to fill and you need to fill it with the best candidate, then it is a cardinal sin to low-ball your offer to that candidate.
It’s a great way to find yourself back at square one.
We invite you to connect with our team today and see what The Doepker Group can do for your organization.
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