Sunday, October 23, 2011

Lesson #6: Effective and Complete Job Offers

A coach recruiting a great player would never say, “Will you be my running back for a salary of X dollars?”  The problem with this approach is that it bases the entire relationship moving forward solely on money.  This might be great if you will always have more money to throw at them in the future, but we know that this is not the reality in the real world!  If this great player will only join your team for X dollars, then they would be just as open to leave you and join another team for a dollar more than you have offered.  What will you have left to offer if there is no additional money for pay raises or promotions?
To build a better, stronger, more permanent relationship with the player, a smart coach lays out an offer that is much more powerful than just a dollar figure.  Sure, the subject of money comes up, but it does not rule the conversation, and money is certainly not the only thing discussed. 
When we think of “job offers” in the utilities industry, we focus too often on money. An effective offer should focus on FOUR KEY AREAS:
1)      Total Investment – That includes the full compensation package, not just their pay, including vacation, company-paid health benefits, sick leave, and other benefits…every dollar the company will shell out to have them working for you each year.  You should also mention the other costs that the company will bear such as the cost of their work truck, their tools, uniforms, initial training, etc.    It is not uncommon for a company to expend twice the worker’s salary just in year one of his employment to get this new hire outfitted for the job.  The company will often spend greater than 30% over and above each worker’s salary just on the company portion of the benefit package.  This means that a company needing to hire a new worker making $30,000 per year may spend $60,000 in year one of that person’s employment just getting them up to the point that they are fully productive and then spend more than $40,000 in salary and benefit costs every year beyond that.  Most workers are oblivious of this fact.  You might say, “Our company is willing to invest more than $55,000 in salary and benefit costs to have you come make widgets for us. It can be broken down this way…”
2)      Personal Growth – Explain what the company will invest in your personal development.  For example: “We’re going to keep on investing time and money in your professional development every year you work with us because it is good for both you and the company.  We’re going to work with you to build a career, not just have a job.  What we plan for you is this…”
3)      Work Life – What’s the mood or vibe of your company? What kind of events do you participate in at work and after hours? Softball? Bowling? Company outings? “Our company is tight knit like a family.  If you like working on a team where everyone pulls together to win, you’re going to love working for us.”  Whatever you do, BE HONEST about this!  Some companies simply don’t offer “work/life balance”.  Their offer is completely different.  “You are going to work hard and put in some long hours while you are here.  We are doing some cutting edge things and glad that you are going to be a part of it.  It will certainly pay off for you in the long run…but, for now, please know that everyone is putting in long hours and we expect you to as well.” 
4)      Corporate Future – Are company prospects good? Are you in a stable business environment or laying people off? Are you offering a career or just a job?  “We intend on being around for a long time and we intend to keep you around for a long time as well.  Sound business decisions by our top management and Board of Directors have positioned us well to ride out this downturn in the economy and we are poised for big things once the turnaround arrives. ”  What prospect doesn't want to hear that?
If you want to start each new hire relationship off in a strong, effective and powerful way, learn to weave these four points into your job offers.  You will be amazed at the difference they will make!