When you think about the negotiation in the recruitment process, the first thing that likely pops into your head is negotiation of the offer—perhaps specifically compensation. While it’s true that this stage of the process is most often associated with negotiation, the truth is that negotiation is present throughout much of the recruitment process, from negotiating the “must have” requirements of the job description to negotiating with the final candidate.

We may believe that negotiation is a skill that we only use at certain moments in our lives, but the reality is that we negotiate every day, with those around us both at work and at home. We move from negotiating contract terms and offers to negotiating dinner plans and the number of bedtime stories. Negotiating is not about “winning” but rather about ensuring that both parties walk away with a mutually beneficial agreement. In today’s competitive talent market, the preparation and execution of thoughtful negotiation tactics is even more important than ever before.

For the business
When we’ve found the right candidate and we’re ready to extend an offer, we must move quickly but also consider how we should present the offer. We expect some negotiation will take place, but what those terms are will depend on the candidate’s priorities. Creativity in the negotiation process is key, you may not have room to increase compensation but is there another place you can be flexible that would be added value for the candidate. For example, if increasing the base salary is not feasible, could we counter with an increase in target bonus or confirming a salary review after 6 months? Depending on the candidate’s deciding factors, some solutions may not require a significant dent in the business’ bottom line (such as offering two days work from home versus onsite full time) but could make a significant impact on the candidate’s final decision.

How the offer is presented is also crucial in negotiations. Presenting the rationale for the offer provides a discussion opportunity with the candidate, giving them insight into where the busi-ness might have room to move and where it cannot. This opportunity to align with the business helps the candidate to move towards acceptance of the offer more quickly.

For candidates
Candidates should approach the negotiation table with a thorough understanding of their priorities—and these should be shared with your recruiter early in the process. Compensation should not be the only deciding factor. Also consider those factors that influence your work life balance (such as hybrid schedules), career aspirations (professional development opportunities or project assignments), or total rewards schemes (bonus targets, commission structures). Keep the bigger picture in mind and evaluate how you react to the offer, allowing you to move towards your broader career goals. Be intentional and thoughtful about what you ask for, and be prepared to support your request with the justification for it.

In an ideal world, businesses would have the opportunity to extend an offer that checks every box of each candidates’ priorities; however, the reality is that at times their hands may be tied by various factors such as internal equity, budget limitations or mismatched timelines. If the business is not able to accept your original request—is there something else that might make the opportunity more appealing? You also have the chance to think creatively. What might help you attain your long-term career aspirations, or what project might align with your specific interests.

The negotiation of the offer can invoke a multitude of emotions on both the part of the candidate and the business. They may be negative—such as anxiety, doubt or disappointment. However, we must remember that we engage in several rounds of negotiations on a daily basis and the same basic principles apply whether we’re negotiating with customers, candidates or just our own children.

Key to successful negotiations is a chance for everyone to be heard—for the business to understand the priorities for the candidates and for the candidates to understand where the business is willing to be flexible. Along with this is the increasing importance of transparency in the process. Authenticity and honesty go a long way in establishing trust and credibility in the relationship between a new hire and the organization. To land top talent, we must approach negotiations as an opportunity to understand the candidates’ perspectives—this creates the building blocks for a collaborative working relationship.

**Note: If you missed it, click the link to read last month’s article: Launching In A Storm: A Year In Recruitment

---

Vector Partners was founded in 2021 by Neil Kelly, a talent acquisition specialist with extensive experience in the pharma CDMO sector. Vector focuses on building sustainable growth through creating the right talent acquisition approach to build the talent needed to drive businesses forward.
neil.kelly@vectorpartnersta.com; www.vectorpartnersta.com