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Straight Talk for the Recruiting Profession


Articles tagged 'negotiation'

Interviews, Relationships

The Art of Negotiation – Prepare for Battle

by on Nov. 7, 2011


salary-negotiation

Since 2008 we have seen businesses fail, jobs lost, inventories cut, marketing budgets slashed, and lots of markdowns. Over the past year however, life has seemingly resumed again. People are starting to buy extravagant items, businesses are getting back on track, and, if you don’t read the news on a daily basis, you’re feeling pretty good about life.

However, a new trend has recently popped up and it’s not a simple matter. Perhaps being in the executive search universe, we are more focused on it, but it cuts across all sectors, functions, and companies. I call it the “Art of the Negotiation.” And it’s not just playing out in the courtroom anymore.

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Fees, Jeff's On Call!

Jeff’s On Call!: Enforcing Old Fee Agreements

by on Sep. 12, 2011


law_gavel

This week’s inquiry comes from Tarin Yankovich:

Hello Jeff,

First off, I have been a fan of you and the Fordyce articles you write for years, thank you for all your great advice! Your experience and wisdom have giving me the foresight on numerous occasions to avoid situations that would have otherwise cost my firm valuable business. Here is a recent question that came up; I thought you’d be the perfect person to shed some light on it for me and possibly your readers.

I run a search firm in Los Angeles and run a national practice within the Finance space. We work with many of the largest finance companies in the world. As most, our business goes in cycles with clients, meaning we’ll do many searches with a client one year and the next we won’t. As a result, sometimes a couple years go by during which time we won’t work with a client but still have contracts with them.

I have one particular client I worked with in 2007; we did many VP level searches for them and they were happy with our results. At the time I had several contacts at various levels within the organization in Chicago, Boston, and New York.  Since the 2009 recession and with a myriad of internal changes at the company literally all of my original contacts both in HR and management have moved on, their assistants have moved on, and even the President of the firm has moved on. Additionally, the firm changed their name a couple years ago using hyphenated name, and recently the firm has dropped the old name altogether and only uses the new one.

Here is my dilemma, I have continued to call on the firm and know who most of the new players are.  Recently I found an open door and am trying to rekindle this relationship with a new search assignment. I don’t want to lose momentum with a new contract if I don’t have to. I have a signed contract, my contract (not theirs), from several years ago, at a percentage I really like. I don’t want to haggle with a new HR person, renegotiate a good contract, and possibly lose the search or get a lower fee than I negotiated pre-recession. However I’m smart enough to see a couple possible issues. I have a contract, with no expiration date, which is signed by a signatory who is no longer there, under a name that the firm no longer uses. I do have some wording that says should the signatory leave his position the contract is still valid, but I fear I’m facing a few issues and want to make sure I’m covered. So, is my contract still valid?

Any guidance would be much appreciated.  Thank you Jeff!

Tarin

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Closing

Recruiter Chronicles: Five Years, Five Mistakes – Part 3

by on Aug. 11, 2011


money calculator by Images of Money

To commemorate the fifth anniversary of my career in recruiting which recently passed, I am sharing with you over the coming weeks the five biggest learning lessons I’ve experienced thus far during my time at the Aureus Group. Last week, I shared the story of an email that got me ‘fired’ from a client. This week, I bring you…

#3: Story of the Botched Salary Negotiation

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Closing, Fees, TFL archives

To Negotiate Or Not To Negotiate…

by on Jan. 4, 2011


moneypeople

The deal is nearly closed. The references and background checks are done. You have thoroughly pre-closed your candidate and have been given the authority to accept on their behalf when the caller ID flashes your client’s number. You answer the phone euphorically with one hand, your calculator in the other, deciding what you will buy with your gigantic commission check when you answer the call…

And it starts with those six dreaded words: WE NEED TO NEGOTIATE THE FEE.

Your mind starts racing; how can this be? It’s the end of the process – why is this coming up now?

DON’T PANIC! This happens to the best of us…even when we have a signed fee agreement in place.

Take a deep breath, and…

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Interviews, Weigh In!

When Should Salary Be Discussed?

by on Aug. 25, 2010


salary-negotiation

In a recent discussion, an unemployed job-seeker shared that she had been on five interviews and was certain that she wasn’t offered a few positions because the salaries they were offering were lower than what she was making at her previous job. She had concluded that the companies were most likely wary of hiring her at a lower wage, for fear that she might leave for a higher paying position once the economy improved. Frustrated, she asked for help on how to approach the delicate topic of compensation for future opportunities.

There were responses coming from all kinds of perspectives for this inquiry:

  • “Remember that salary requirements should never be spoken about in first interviews (provided you know that there will be a 2nd or 3rd round of interviews). Unless the employer brings it up in the first interview, don’t bring it up.”
  • “Start by being honest with yourself, why are you taking a step back? Are you going to bolt when something better comes along. You need to research the position you are applying for and tell them that you are aware of the difference in salary. You need to look at the role and state honestly why you want it and what you could do for them.”
  • “Generally candidates try to deflect discussions about salary and benefits until they have been offered the job and persuaded the interviewers that they are ideal candidate for the job. Smart candidates will do everything to avoid answering direct questions about salary and benefits. Try to bring him back to the parameters which he is looking for and put emphasis on your your suitability for this job.”

This is a tricky topic these days with lots of job-seekers putting themselves up for positions that are a level or two below them simply because they need to make ends meet. There is always the possibility that these candidates will cut and run once things improve, but this is also a very real situation that doesn’t seem to have any one agreed-upon answer.

There are really two issues here: interviewing for positions that are a notch or two below one’s current level, and discussing salary during the interview process. Would you send a candidate to interview for a position that was below his or her current level? How do you advise your candidates on when to discuss salary? Weigh in with your thoughts below.

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Uncategorized

Never Negotiate Perm Fees Again!

by on May 25, 2010


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In conjunction with RecruitersConnection, I’ll be conducting a free one-hour webinar tomorrow (Wednesday, May 26) on perm fee negotiations. It is scheduled for 1:30pm-2:30pm Eastern.

You have probably seen this in your free training, but this will be live! So join us to refresh what you know, or to ask questions or share with your team. This fast-paced session will bring you back to the basics — let’s face it, everyone in the industry is often faced with having to lower their fees or go head-to-head with free resources, such as job boards and ads.

If you hear, “Your fees are too high,” or “We are going to see what we can get for free first,” this session can save your desk.

The method can be implemented on your very first call after this session; the concept lies in getting back to the point of understanding what the word contingency means and how you can better sell this to the client. In essence, you can never be overpriced when it will always be the customer who will decide if they want to pay the price. The best part about this technique is that you don’t have to change the things that have worked for you in the past.

Be sure to register here.

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Uncategorized

Negotiation Revisited

by on Dec. 21, 2009


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There are good negotiators who are not necessarily good salespeople but you will not find a truly good salesperson who is not also a good negotiator. That’s because sales and negotiation are two sides of the same coin.

As closely connected as these two processes may be, negotiation, if necessary, should begin only after an initial commitment has been reached with your prospect.

Consequently, don’t get dragged into a negotiation unless you have reached agreement in principle to do business together. That’s the purpose of the sales process.

In my negotiation training programs, I stress that all negotiation is based on power, whether real or perceived. A carefully executed sales process will establish what degree of power you possess as you enter the negotiation process. If you have positioned yourself and/or your services in a manner that creates an image in the eyes of your prospect that he/she cannot walk away, you have a powerful negotiating position.

Since the prospect believes they cannot walk away, they will be negotiating from a weak position, a position of need.

Remember

In negotiation, need is death, want is life.
Jim Camp

The best example of need and the negative leverage it creates in negotiating is the recruiter who believes they must make the sale.

This belief will make them accept just about any concession the prospect requests from discounted fees, to an extended guarantee and unrealistic payment terms.

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Uncategorized

Nudge Neil: Lowering Fees in a Bad Economy?

by on Oct. 19, 2009


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Q: Just like everyone else, I am constantly being asked to lower my fees to get an order. I know that once I lower my fees, I will have a hard time ever raising them again. Do you have any tips so that my clients know I am only doing this because times are tough right now?

A: In general, I am not a believer that lowering your prices will bring in more business. That is not the purpose of your question, but if you are thinking of trying it, then DO NOT.

Here is a brief video on that topic. If you get really good at selling contingency, then you should almost never have to discount it. If you haven’t seen this episode of Fordyce TV on perm fee negotiations, take time to watch it now!

Any time supply exceeds demand, it is reasonable to expect to see some element of pricing pressure. There are always times where we need to drop the fee on a particular order, but you are right to worry about your ability to raise fees later on. It is much easier to lower fees than it is to raise them! The same holds true if you agree to work with a client at any fee below your full fee.

Here is a great trick to ensure that your discounts are viewed as one-time only discounts:

NEVER, EVER, EVER, NEVER, EVER, NEVER (get it?) LOWER YOUR FULL FEE. NEVER!! BUT, feel free, WHEN YOU HAVE TO, to offer a special one-time or limited DISCOUNT to your fees!

For example, if you always do a 30% fee with a client and decide that you WILL agree to what nets out to be a 20% fee, here’s how you do it.

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Uncategorized

Fordyce TV: Perm Fee Negotiations

by on Jul. 16, 2009


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Neil Lebovits, CPA, CPC, CTS — a Fortune 500 Staffing industry executive turned trainer — will join us on the next episode of Fordyce TV! Mark your calendars for Tuesday, July 21 — Neil will be talking about the “real” perm fee negotiation secret you may have never thought about.

In this fast-paced, highly energetic, information-packed episode, Neil will “go back to the basics” to share a technique that most recruiters, let alone clients, don’t even think about.

“You can never be overpriced when it is always the customer who will later decide if they WANT TO PAY THE PRICE,” he says.

It’s a simple but seldom used close that works almost every time, he adds.

“If what they fear now is true — that you are indeed overpriced — then they will indeed not hire your person later. However, if they are wrong now, then they will be thrilled that they saw your person!”

Neil will share the concept, closes, analogies, and potential scripts that can go along with it. This is a great method that can also incorporate all of your proven “fee closes.”

The show starts promptly at 2pm ET on www.fordyceletter.com (right before the show you’ll see a small TV logo — click that box and enjoy the show — if you don’t see the box at 2, try refreshing the screen once or twice until you see it). There will be a live Q&A session via the chat box after the presentation, too, so come prepared with questions.

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