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DEC. 2014 The Korn Ferry InsiderAdvice from the world’s most

influential executive search consultants.

Issue No. 3:

© 2014 Korn Ferry. All Rights Reserved.

Sealing the deal

By the time a job offer is extended, a recruiter has invested hours over many weeks or months get-ting to know the person and making sure they

right for the role. This begins the most crucial stage of any search: the slightest misstep in negotiating the final

terms can cause executives to renege at the final hour and end a promising match. To avoid a case of cold feet, recruiters have to be exception-

ally tactful and make the process go smoothly. Korn Ferry con-sultants share five tips that can save a lot of unnecessary heartache in the closing stages of an executive search.

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DEC. 2014 The Korn Ferry InsiderAdvice from the world’s most

influential executive search consultants.

1. Know the bottom line.Establish clear guidelines about

what level of salary is required

to secure the best person for the

job. Be realistic about how that

compares to the competition. Are

the salary and full compensation

package in the middle, or the up-

per quartile of what the rest of the

industry is paying? What portion of

someone’s equity in their current

employer’s stock are they willing to

replace/offset? 80%? Half? None?

Where is there room for compro-

mise? What are some creative and

“out of the box” solutions that you

can present as leverage?

2. Remember what drives them.By now, a recruiter should know

what motivates and is meaning-

ful to the candidate. Speak their

language: Are they highly analytical

and detail-oriented? Will they ask

hundreds of questions to clarify and

understand? What in the culture

or opportunity of the company will

resonate with them? Is relocation

something they desire, or are there

other personal obstacles? Thinking

in this way as the discussions prog-

ress will help you know how much

to give and what information they

might find persuasive.

“In the old days, we’d get candidates who would ‘play the game’ and use the negotiations process

to go back to their companies. But candidates for top roles are more mature now.”

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3. Get on the same page.There is nothing worse than thinking

you are near the end of compensa-

tion talks only to have an execu-

tive counter with something quite

significant—e.g., another $1 million in

equity—that they “forgot” they cur-

rently receive. Save everyone a lot of

headaches by creating a comprehen-

sive compensation checklist, giving

it to the candidate to complete, and

getting their signature. Include any

possible perk, no matter how seem-

ingly trivial. This puts the onus on

the executive to delineate expecta-

tions, and allows you to talk “apples

to apples” during negotiations.

4. Keep the talks offline.Avoid putting anything in writing

until the final stages. Discuss early

offers over the phone. Walk through

their checklist, to demonstrate how

the new offer compares to their cur-

rent package.

“As a search consultant, I am free to have an unbiased and impartial conversation with both parties. For example, it is much easier for me to say, ‘Are you crazy? We have done four of thesve searches in the last six months, and none of them paid like this.’”

DEC. 2014 The Korn Ferry InsiderAdvice from the world’s most

influential executive search consultants.

www.KornFerry.com

5. Don’t drag your feet and then demand and answer. Putting an executive’s offer to-

gether often requires going

through a compensation commit-

tee, or similar, multiple layers of

approval. Be aware that from a

candidate’s perspective, the lon-

ger it takes for an offer to come

in, the higher their expectations

will be. To maintain trust, stay

in close contact and be candid.

Manage expectations on timing.

Once you finally make an offer,

give the executive a fair amount

of time—no less than five working

days—to respond.

DEC. 2014 The Korn Ferry InsiderAdvice from the world’s most

influential executive search consultants.

GeTTInG amazInG pRoFessIonals to sign on the dotted line is a real achievement. The minute the contract is completed, the important work of onboarding begins. In the final installment of The Korn Ferry Insider series, we look at the intricacies of upholding and de-romanticizing the promises made during recruiting to seamlessly integrate the executive into a new culture.

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First, understand outlooks. Steer discussions away from compensation packages until you have a clear picture of the candidate’s expectations and the company’s budget. If the leader’s current base salary outstrips the usual range for comparable roles, manage expectation. It should be the candidate’s choice at that point whether to continue any negotiations. But also remember: money is rarely the true attractor for a new job. The opportunity is what holds allure.

Beyond the basic salary. Long-term cash incentives remain attractive options that privately held companies cannily offer instead of equity

Know the detail. The executive’s account of his or her compensation package is a start, but you also have

to thoroughly understand it. Equity can be wildly over- or underestimated, and half of candidates do not really understand the effect of stock options on their net worth. Do not, however, try to be their financial advisor.

Hire a mediator. When it comes time to craft and negotiate a complex compensation package for senior executives or board directors, many human resources leaders prefer to hire specialist search consultants from firms like Korn Ferry. While firms may have in-house industry research, the best search consultants have access to real-time, talent data that crosses sectors and functions. That provides a reality check, and a party who can help both sides address perceived obstacles with confidence.

DEC. 2014 The Korn Ferry InsiderAdvice from the world’s most

influential executive search consultants.

negotiating Tips