10 Reasons Deals Fail:
1. Time
2. Salary Gap
3. Location (or Relocation)
4. Misrepresentation
5. Counter Offer
6. Surprises
7. Unprepared Candidates or Hiring Authorities
8. Moving the Goal Post
9. Other Offers or Unknown Candidates
10. Bad Chemistry and/or Unqualified Candidates
Reason Number One: Time
Time Kills All Deals
It is absolutely undeniable that time kills all deals and urgency expedites all deals.
• Companies that drag their feet to make offers lose the interest and attention of candidates.
• Candidates feel a sense of vulnerability when they send their resume out for inspection.
• If the Company schedules an interview immediately … the candidate gets even more excited.
• Conversely, if a Company is slow to respond, the candidate feels a sense of rejection. He starts to feel it’s not so bad where he is … at least he knows what to expect. Feelings of being disloyal creek up if you give a candidate too much time to think about it. If the Company waits too long to schedule the final interview or to make an offer, the candidate starts to feel there is someone better interviewing, and he is being placed on the back burner.
• Companies that quickly invite candidates back give recruited candidates little time to think, and demonstrate how much they want the candidate.
• If the candidate feels even somewhat taken for granted by his current employer, he feels thrilled with the attention. Take that thrill away and the “fear of change” starts to set in.
• How much is it costing the company per day not having someone on board?
• Who is doing the work now?
• What have you done to fill the job?
• Don’t let candidates have enough time to go on another interview with some other company. He may not have been looking for a job when the recruiter first contacted him, but you better believe now he is looking at your opportunity, he’s probably out looking around now.
• Propel Search Group usually pre-closes the offer before the interview. It helps keep the “white heat” going after the interview. The company needs to know what the candidate would say yes to, resign from his current position, and start in two to three weeks. Companies that know that number, can make an offer on the spot with no surprises and no wasting of anyone’s time. Offer and acceptance should be a no-brainer.
• It works well to be aware of the “what if” scenario:
- What if you love them and they love you?
- When can you make the offer?
- Can we set a start date before the face to face interview?
- Does the recruiter have your authorization to make an offer on your behalf?
Other Time-Related Road Blocks to Keep in Mind
• H1B Transfers slow the process to a crawl.
• A start date more than three weeks after the offer acceptance gives the candidate too much time:
- to change his mind
- to seek another (better) offer
- to consider a counter offer
- to get cold feet.
Reason Number Two: Salary Gap
Good recruiters respect the Salary Range
• Propel Search Group does not send over candidates outside the company’s salary range, unless we make it absolutely clear the candidate is making more than the salary range and you have told us there may be some “wiggle room.”
• We feel we are wasting everyone’s time if we send over a candidate that expects an offer higher than the budgeted salary, unless you, the company, agrees to “take a look” anyway.
Propel Search Group knows one of the biggest mistakes a Recruiter can make is to wish and hope. We realize the company probably will not go up and the candidate probably will not go down. We attempt to pre-close on the salary beforehand. We feel it’s better to lose the deal than to spend a company’s money on expensive interviewing if there is a gap between the expected salary and what the company is able to offer.
Other Comments on Salary:
• Propel Search Group Conducts its own salary surveys
We are aware of what salaries are in your area and advise companies where their salaries should be. Part of out value-added services is that the we can document compensation ranges in the niche. Our hiring authorities can use information provided by the Recruiter to negotiate within their own organizations to raise the salary, if necessary. This is a very effective consultative approach and has built respect and loyalty among our client companies.
• Be aware of Cost of Living Variances
It does cost more to live in San Francisco than it does in Tucson. To compare salaries by geographical location, go to www.homefair.com .
• Bonuses sometimes can offset salary discrepancies because they come out of different budgets, if there is a salary gap, the following bonuses can be potential negotiation tools:
- Sign on bonuses
- Incentive bonuses
- Loans that forgive over time.
Perks – Other Potential Deal Breakers
Before the final face to face interview, Propel Search Group goes over the candidate’s entire current compensation package. If there is a shortcoming or gap anywhere, it needs to be addressed in advance.
If the current employer has a better package anywhere it can kill the deal. We make sure we compare the following:
• Vacation and/or paid time off
• Benefits
• Non-contributory Pensions
• 401K Programs
• Day Care/ Tuition Reimbursement / Gyms / Paid Parking / Commute Allowances
• Vehicle provided?
• When do benefits kick in? Day one? In 30 days? In 90 days?
Reason Number Three: Location/Relocation
Location (not Relocation)
Sometimes, location is an issue even if the work site is within commute distance. If the job is in Los Angeles or San Francisco, commuter road rage and gridlock influences whether a candidate is willing to accept an offer with a company that requires a long or dangerous commute.
Sometimes working mothers do not want to be too far away from school age children, so location is important.
Some work sites are dangerous places (mines, quarries, places with a lot of hazardous waste) and it’s tough to lure candidates to work there.
It could be in a particularly bad place in town, where candidates don’t feel safe. Other times, the work site is in the middle of nowhere making a commute grueling especially in bad weather.
The truth is the three most important things candidates require when making a job change are location, location and location.
Relocation:
If a candidate tells us he is willing to relocate to make a job change, Propel Search Group digs deep to discover the candidate’s motivators. What are some of the potential motivators?
• To land a new job
• To improve career
• To get closer to family
• To get the kids in a better school district
• To be closer to family of origin
• To be with or get married to someone living in a different city
• To get away from someone
• To live in an area with a lower cost of living
• To live in a warmer climate
We make a point to find out the motivation. It really comes into play – for any deal – when other issues come up during the offer stage.
If relocating a candidate, Propel Search Group takes into account:
• The Significant Other
We absolutely talk to the significant other. If the significant other says “Who are you? What headhunter? What job in Philadelphia? Over my dead body” Then, we know we are in trouble.
If the significant other says “Whatever you do … get him that job,” we know we are I great shape.
We also keep in mind:
- What does the significant other do for a living? Are there obstacles to the significant other finding a new job in the new area?
- How much influence does the significant other have over the terms of the offer?
- Is the significant other willing to be left behind while the house is being sold etc?
• Children and other Family
- Kids in High School or Special Schools?
- Significant other's mother lives in the same town and takes of the kids?
- Visitation schedule with an Ex prohibits children moving?
- Friends/romantic relationships?
- We never underestimate the power of a romantic partner to kill a deal. Are they REALLY single?
- Social, cultural, environmental circumstances
- Religious circle not supported in new location?
- Alternative lifestyles?
- North vs South?
- Big City vs Small town?
- Hot vs Cold weather?
- Hobbies/Interests? (Golf, surfing, fishing, theater, educational institutions all are location oriented)
- Medical conditions/limitations?
• Other location considerations
- Price of living differences
- Home Ownership / lease commitments
- Velvet Handcuffs (bonuses pay-backs etc)
- Relocation budget too low/unrealistic
- Unrealistic expectations from candidates for relocation coverage
- House hunting trips, temporary housing, items covered for moving, real estate costs, fees,reimbursements for loss of equity, cost of living differential and the like.
Reason Number Four: Misrepresentation
Rule number one: They all lie.
Rule Number two: They all lie
Rule number three: They all lie.
Propel Search Group verifies everything we can think of:
Faking a college degree is the number one lie told on a resume. We feel it’s always good to verify:
- College degree
- Experience (reference check)
- Current salary / Bonus (Some companies require the last two pay stubs)
- Licenses and/or Certifications
Candidates misrepresent themselves to Client Companies and Recruiters, ro. Because of this, Propel Search Group always is asking:
- Has anything changed?
- Are you interviewing anywhere else?
- Do you have any other offers?
- Are you still willing to relocate? Have you talked with your family?
- Will you reject a counter offer?
- Is there anything that would prevent you from accepting an offer and starting on a particular date?
- Any run-ins with the law? Drugs? Criminal convictions? DUI?
- Are you working with OTHER recruiters?
Reason Number Five: Counter Offer
Propel Search Group assumes there is going to be a counter offer. That’s why we close early and often on this point. We go over the counter offer before the offer (so we don’t sound like you are trying the SELL him the job if a counter offer is made.) During the Interview Prep, we review with candidates the following:
No. 1:
What type of company do you work for if you have threatened to resign before they give you what you are worth?
No. 2:
Where is the money for the counteroffer coming from? Is it your next raise, early? (Many companies have strict wage and salary guidelines that must be followed).
No. 3:
Your company will immediately start looking for a new person at a lower salary.
No. 4:
You have now made your employer aware that you are unhappy. From this day on, your loyalty will always be in question.
No. 5:
When promotion time comes around, your employer will remember who was loyal and who wasn't. Which list do you think you will be on?
No. 6:
When times get tough, your employer will begin the cutback with you.
No. 7:
The same circumstances that now cause you to consider a change will repeat themselves in the future, even if you accept a counteroffer.
No. 8:
Statistics compiled by the National Employment Association confirm the fact that over 80% of those people who elected to accept a counteroffer are not with their company six months only.
No. 9:
Accepting a counteroffer is a bribe and a blow to your personal pride. Were you bought?
No. 10:
Once the word gets out, the relationship that you now enjoy with your co-workers will never be the same. You will lose the personal satisfaction of peer group acceptance.
Propel Search Group advises candidates to think carefully about all these facts before making a final decision. We review his motivations for leaving his current position, the reasons he accepted (or said he would accept) the position and what his career goals are.
Reason Number Six: Surprises
Propel Search Group seeks out surprises
It cannot be overemphasized that during the hiring process, surprises come out of no where. That’s Propel Search Group constantly asks and verifies to make sure there are no changes in between phone calls or emails. Surprises can be anything – any stone left unturned. Some surprises can be things like:
- The candidate owes his company money.
- The candidate has a medical condition and scheduled medical procedurethat would keep him from starting the job for at least eight or more weeks.
- The candidate has a child with a disability that requires a special school.
- The candidate has a personal issue (like his house burns down) during the interview process.
- The candidate accepted another offer because a reference finds out he is back on the job market again and offered him a job.
- A hiring freeze from the corporate level puts a halt to the process just before the offer.
- The candidate is diagnosed with an illness during the pre- employment physical.
- The candidate turns down an offer because of the new company’s dress code.
- The candidate turns down an offer because of the shift.
Propel Search Group knows the only to combat surprises is by always asking “has anything changed?” We emphasize that no detail is too small or insignificant. Sometimes these surprise obstacles can be overcome if tackled early on.
Reason Number Seven: Unprepared Candidates or Hiring Authorities
Propel Search Group makes sure candidates:
- Do homework about the company
- Are prepared to talk about and quantify accomplishments and problem solving skills.
- Do not overvalue or undervalue their worth.
Propel Search Group helps our Hiring Authorities:
- Do their homework about the candidate. We let them know:
- The candidate’s current salary range
- The candidate’s motivation for making a change
- The candidate’s target salary requirement
- The candidate’s “hot buttons”
- To “sell” the company
- Tell the candidate what he will do, learn and become in the position.
Reason Number Eight: “moving the goal post.”
When requirements and the job description keep changing, or when the Recruiter sends in candidates who have everything the company is looking for and they still are not hiring, someone is moving the goal post. This often happens when:
- There is a committee of hiring authorities
- There have a set of unrealistic requirements
- It is a newly created position.
Nobody really knows what they are looking for. Everyone has a very different idea as to what the candidate should be able to accomplish, and that usually relates to how this person will interact and work with the candidate. In reality, the candidate probably does not exist. Most of the time, this happens when it’s a new position. Unfortunately, it keeps a Recruiter chasing his tail and wastes a lot of time. Some candidates go in for interview after interview and still there is no decision. Most of the time, the deal falls through and no one is hired.
Reason Number Nine: Other Offers and Other Candidates are Hired
Sometimes Propel Search Group just does not present the right candidate (it happens!) The company may end up offering the job to someone else: an internal candidate, a “walk-in” candidate or a candidate from another Recruiter. WE don’t win them all, but we hope our client companies do!
Also, the candidate also may accept an offer with another company, and it’s back to the drawing board.
Reason Number Ten: Bad Chemistry or Under-qualified candidates
It happens all the time. The candidate looks good on paper. He may even have the actual experience and/or qualifications the company is looking for. But, the company does not hire him because they do not feel he will fit in.
Maybe he has a bad attitude, insults someone, is too hyper, is not hyper enough, smells bad, wears the wrong clothes, has poor personal hygiene – whatever. Sometimes a candidate just does not fit in. This is not to be confused with discrimination. It’s more the “chemistry” thing not overt discrimination.
Also, a candidate may look good on paper, but when interviewed in person, it is determined the candidate does not have the specific experience to “hit the ground running.” It’s just not a good fit. It happens and the deal falls through.
