I had a conversation this morning with Richard (not his real name) concerning a job offer he just received. He wanted to know my thoughts.
For the past five years, Richard has been at a large company and currently has an Executive Director title. The offer is for a position with the same title, the same compensation, and in a slightly smaller job. But, he would be leading a submission, moving from a large company to a biotech, and gaining experience in a totally new environment.
Richard wants to make the move and the new company wants him; it seems like a very good match all around. But he’s disappointed with the compensation and concerned that a lateral move will look bad on his CV and negatively impact his future options.
Things Are Out of Whack
In the years leading up to our current biotech downturn, the war for talent was so hot that companies were throwing everything they had at candidates — it resulted in significant inflation of compensation and titles.
But when the IPO market dried up and the company failures and layoffs began, that ended. We have now returned to what I’d call more “reality-based” hiring. That has left some gaps between what companies want to offer — across any number of parameters — and candidate expectations.
These days, situations like Richard’s are not uncommon. A company wants to bring on a fantastic candidate, but the person’s current title and compensation are too high for what the market can now bear.
How can the company make it work if they are not competitive in these areas?
Three suggestions…
#1. Dig Deeper
It should never be just about the money. What other things matter to the candidate, both short and long term?
How can you help them gain the skills and experience they want — training, classes, coaching, exposure to different roles? How can you help them shape the life they are looking for — reduced travel, variable work schedule, etc.?
Different people want different things. Listen and learn what matters most to them.
#2. Get Creative
Salary is only one aspect of compensation. Can you offer a multiple-year signing bonus that pays out on the hiring anniversary? Can you offer additional equity or allow them time to do consulting on the side?
Other options may include covering childcare or eldercare costs, wellness and mental health, 4-day work week, additional vacation, tuition reimbursement.
Look beyond the traditional.
#3. Focus on the Longer Term
When considering a job offer, candidates are understandably hyper-focused on the next move; they tend to view things linearly, expecting more money and a bigger title with each step taken.
But as I suggested to Richard, if he is too rigid, he will miss out on opportunities. Who will you be working with? What will you be doing? What is the quality of the company? What resources are available? If you enjoy the work and the people and you’re learning something new, you will do a better job and gain more career momentum as a result.
Make sure the candidate knows of the company’s ability to deliver on growth, culture, and success. Introduce them to people in the organization who are living this. Help them expand their view and envision the long game.
Transparency and Reputation
Every job offer involves negotiation. How you show up throughout the process speaks volumes about the company.
Be clear about the need to be fair and to maintain parity with others who are already on board. Let the candidate know what you can and cannot do and the parameters with which you are working.
And if you can’t find a way to give them what they want, be willing to say that, too, and walk away.
All of this builds a foundation of trust. The top candidates always have options; the feel of your company and how it treats people during the hiring process can allow you to “win,” even when the numbers and title fall short.
Just remember that whether or not you manage to hire that top candidate today, biotech is a small world and people talk. Your approach to hiring will influence your ability to attract talent in the future.
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