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The biggest salary negotiation mistake I ever made

February 1st, 2012

Several years ago I recruited a great role for a national client. We had a big advertising budget and it was a high level position in the Adelaide property market. The role attracted lots of interest and we narrowed down to our preferred candidate.

Then salary negotiations started. It took almost three weeks to work back and forward between the client and candidate to put the deal together. It was a complex package involving a base salary, super, car allowance, share options, annual bonus schemes (based on a sliding scale against management level pay scales as the salary rose, rated against personal achievement and company achievement) and a sign on bonus. There was a lot to contend with and both parties negotiated hard.

My mistake? When taking final instructions from the client to get the deal across the line not to confirm it in writing first. Having worked through the process for several weeks I thought I knew my stuff! I put the new deal to the candidate which he duly accepted and resigned from his senior role. Two days later the client came back to me and said he had never authorised what I had offered the candidate and they weren’t able to go to that level.

After managing through a major panic attack I talked the client through what I thought he had told me. To this day I don’t know where the misunderstanding arose. As he was as adamant he had told me differently, and my notes reflected something else again.

The outcome? Eventually the client authorised a bigger sign on bonus to be paid and the role went through. Even though I had a great working relationship with the client, I knew that he had lost some faith in my negotiating abilities as a result of what had happened.

The moral of this story is that if a salary is more complex than two or three components always confirm it in writing with all parties. A quick email or letter is all it takes to re-c onfirm what has been discussed, and it is a practice we employ to this day.

Whether you are in a consultancy position like us, working in HR or employing someone direct to work with you, avoid any potential misunderstandings. Salary negotiations gone bad can make for a sour start to a new role. Kick everything off with clear instructions from the start and it will help to ensure a positive experience for all involved.

2012 Is Going To Be An Awesome Year!

December 15th, 2011

I have decided next year is going to be fantastic.

I cannot have an impact on whether or not the EU breaks up or if parts of the world slide into recession.  I have no idea what will happen with inflation or whether interest rates will go up or down in 2012.  I don’t know what impact the new carbon tax will have on me and my business when it is introduced in July next year.

I do know that I can have a big impact on my business and whether or not I meet my goals in the New Year.

In a recent blog I read by marketing guru Chris Savage, he talked about iron man Trevor Hendy’s key to success.  In short his approach was to think:

“Conditions are always perfect.”

The surf could be huge, the wind coming from the wrong direction but Trevor would take the approach that conditions were perfect. As Chris said “It is so easy to use external factors as an excuse; as a reason to talk things down; to give yourself an ‘out’ ; to convince yourself that outcomes are beyond your control.  Take the approach that whatever the conditions and circumstance, they are perfect for you to do your best, outsmart your competition, thrill a prospect and achieve your goals”.

The other message I take out of this is that the conditions are the same for all competitors; it is how you choose to compete that affects the outcome.

Set your goals for the upcoming year and aim to achieve them.  Be ambitious – if things could be better start aiming for the upside.  If things are going ok make them better! It is no coincidence that people who plan to succeed usually do.  If you are feeling the doom and gloom of constant media driven negative woes start looking for the positive.  Surround yourself with energetic forward thinking people and make your own future.  You may just make 2012 fantastic!

 

Has technology made us lazy job seekers?

November 17th, 2011

The risk of writing this article is that I will show how old I am potentially becoming!

In looking through some old documents last week, I came upon the advert for my first corporate job application.  It was a classified advert, quite formal and asked for all applications to include a handwritten cover letter.  In my best cursive writing, I posted off my application, and after an interview, won the role.

Today we can see a job on the internet, attach an application and apply all in under a minute.

Somewhere along the way we all seem to have lost the personal touch.  Employers and recruiters aren’t as encouraging in taking phone enquiries about a job.  Due to the simplicity of the modern day application process, job seekers may not be as thorough when researching a role.  In making things easier, I think technology has sometimes made things harder as quantity of jobs and applicants increase but quality decreases.

 

Whichever side of the fence you are sitting (employer or employee) don’t forgot that jobs still revolve all around people.  Take the opportunity to research a role, ring up and ask questions about the position and give your time to those who are applying.  Personalise your application, address it to an individual if there is a contact and make an investment of time in starting to build a relationship.  So at the end of the day it might not be your dream job or employee, but if it is, do yourself a favour and get ahead of the crowd from the outset.

These days, writing a handwritten letter is unlikely to win you your dream job, but taking the same amount of time to tailor your resume to a potential job opportunity just might.

 

 

Have you ever turned up at a party and wondered why you are there ….

October 13th, 2011

What about a corporate function? You didn’t really want to go but knew you probably should. Maybe there would be an opportunity to meet someone and make a new contact that might lead to some work. Or you knew that your competitor would be there so you should make an appearance. Or perhaps you thought that some high profile business types would be in attendance and it would be good to be “seen” by them.
Could this also describe your approach to Linked In?
I was talking to a client recently and it came up in conversation that we were connected on Linked In. This person went on to say they were receiving quite a lot of invitations to connect with other people as well as sending out invites and had over 100 contacts. I commented that this was great, but what was he intending to use LinkedIn for in the first place? There was a puzzled silence and then he admitted he had no idea and someone in the business had suggested all the managers should set up a profile and so he did.
So sums up the approach to a lot of people I have spoken to recently! I’m busy, I don’t understand it, I don’t have time for that online stuff are all common sentiments echoed by users.
A post on LinkedIn several months ago by involved in TEC (The Executive Connection) offering a free guide to using LinkedIn created an avalanche of enquiries which literally went on for months! It was the biggest discussion post I have ever seen on LinkedIn, which ironically was about how to use LinkedIn!
For all you users I suggest that you think about how LinkedIn can benefit you and then set a plan of how to achieve this.  So why am I on LinkedIn?
• So that through postings I can increase our presence on Google searches
• Stay in contact with clients and people I have met in the property industry
• Position myself and our company as experts in our field
• Explore advertising opportunities for vacant positions

I have set a plan to connect with a certain amount of people and make a certain number of postings per month. Clinical it may sound, but one thing is for sure – you get out of it what you put into it. . LinkedIn is no different to any type of business networking that you undertake. If you rarely attend networking functions, or don’t go out of your way to make business contacts and then effectively follow up, you will have little impact in generating benefit for yourself. If you only make and accept connections on LinkedIn, then you won’t get too much more out of it then seeing who has made a new connections in the business world. No different really, than going to that corporate function and standing on the outside of the room watching what everyone else is doing.
So how are you going to use LinkedIn from now on?

Increase your profits – engage your staff!

September 29th, 2011

Regardless of the industry that you work in, most companies strive to increase profit and market share.  A recent article that I saw made me have a light bulb moment – what if you could increase your profits not by getting more clients or selling more, but by having a more engaged workforce?  Recent research by Aon Hewitt found companies that are really focussed on their employees can generate higher profits.

It got me thinking about some of the things that we do at Edge Recruitment to engage our employees that we feel has helped our organisation.

  • Holding weekly training sessions.  Sometimes these are formal, sometimes they aren’t but staff are able to raise areas where they feel they need more training or assistance.  As a group we discuss the problem and how to approach it and often document the agreed solution so it can be referred to in the future.
  • Engaging external trainers.  It is always refreshing for staff to hear from an outside trainer.  It may cement what they know or provide them with a whole new set of skills, either way they feel that they are being developed in their role.
  • Putting in place a mentoring scheme.  This is a new one for us, but we are putting in place external mentors for our senior staff so that they can bounce ideas, set goals and learn from proven performers outside of our company.  We hope this will lead to them gaining increased confidence and motivation in their role.
  • Celebrating our wins.  This goes without saying!  From admin staff to consultants or teams everyone should have the opportunity to feel great about their success.  Whether it is acknowledgement in a meeting, cake and nibbles or Friday night drinks, a small company investment builds great rewards long term.
  • Providing a good work environment.  Having just moved offices we have seen really great benefits in terms of the motivation and morale of our team.  Although we loved our former (little!) office, our staff are now so proud of where they work and the corporate environment it pervades.
  • Creating flexible working arrangements.  Several of our team are working mum’s and I am sure they are the most productive members of our team!  Remote computer access, flexible start/finish times and time off for family events have helped build great loyalty amongst our team.  At the end of the day it has provided small disruption compared to the benefits the company has received.
  • Looking for ways to improve.  While we don‘t change for the sake of it, we regularly look at our systems, processes, marketing and services to consider if we can do things better or more efficiently.  Staff are involved in this process because it usually impacts on them most.  If needed we will bring in an expert consultant from outside the company to provide us with advice and direction.  Our team appreciate the fact that we are open to doing things differently.
  • Recruiting to suit our team.  We are prepared to train new staff if we think they have the qualities to succeed in our environment.  This has meant that in some roles it has taken longer for results to shine through, but the upside has been a very low turnover of staff in an industry renowned for its high turnover.

We are a small company and which does may it easier to manage and create a positive culture.  But even big organisations are usually made up of smaller teams and the best companies put time and resources in ensuring that from management down, staff are valued and engaged.

So I wonder if conversely companies that don’t invest time and money into their workforce are not performing as well, or are missing out on potential profits?

How does your company rate?