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.






