Who Should Negotiate the Offer– The Employer or the Recruiting Firm?

You have worked hard to find the perfect candidate, and now it is time to make the offer. The offer stage is sensitive since the candidate ties their self-esteem to the offer, and the hiring manager is concerned with internal equity and operating costs.

Connexis Search Group recruits candidates in the CLIA Lab, Life Sciences, Molecular Diagnostics, and Medical Devices industries. The below information was gathered from our experience over the last 20 years.

The process that we prefer and have found the most success with is to let the recruiting firm verbally present the offer, and once the candidate agrees to the terms, the company sends the written offer (with a 48-hour expiration).

This makes for a smooth process and less work for the client since they prepare the offer once, not multiple times.

Advantages of letting the recruiting firm verbally present your offer :

Increased chance of securing the candidate

If you work with a well-trained, professional recruiter, your chances of securing the candidate drastically improve. 

A good recruiter will ensure the candidate and the employer get what they need, resulting in a win-win outcome. You should find another recruiter if you do not trust your recruiter to assist you with the negotiations.       

Prevents candidates from having hard feelings toward future employer     

When the recruiting firm serves as the mediator, there is less chance that the candidate feels their future employer was unfair during the negotiations.  We all know that negotiations have the potential for one of the parties to feel like they are lost.

Keeps the candidate’s compensation requirements realistic

The recruiter has spoken to the candidate more than anyone involved in the process, and they will better understand what motivates the candidate to change companies.  Most of the time, money is not why a candidate seeks to make a change.

If the recruiter is good, they will know the candidate's reason for making a job change and can keep the candidate realistic with their compensation requirements by reminding them of their real reasons for changing.  

Prevent salary creep

Once candidates realize they are your number one choice, they become overconfident and ask for a higher base than initially requested.  Since the recruiter has gathered compensation information during their first call and gained agreement on their walkaway numbers, they can remind the candidate of those commitments. 

Most employers are not trained to obtain this information, putting them at a disadvantage during negotiations.

The Offer Process

• The Recruiter and Employer should establish compensation ranges before starting the search. (Sometimes, the employer will not know the salary and rely on the recruiter to help determine appropriate compensation.) Candidates should NEVER be told the range since all they hear is the highest number. If you tell a candidate the base is between $120,000 and $140,000, be prepared to offer $140,000!
  
  
• The Recruiter is responsible for obtaining the candidate’s compensation early in the process (first conversation), and the amount they seek to make a change should also be determined. Candidates are more reasonable and forthright early in the recruiting process.  Ask the candidate what their W2 was last year.  Ensure you obtain detailed information such as base, bonus, and commission.  If you wait until the process's end to ask compensation questions, the candidate may be harder to pin down.
  
  
• Once a candidate becomes viable, the recruiter should reveal to the employer the compensation numbers obtained from the candidate. The employer should rely on the recruiter's input to determine an acceptable offer.  The recruiter will know what the candidate will accept or reject. 

I realize that some recruiters are unethical and will try to increase their fees by negotiating a higher base salary for their candidate.  There are two ways to avoid this.  One is to have a flat fee. The other is to only work with reputable recruiters.