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Perspectives June 14, 2013

LinkedIn / 5 Things You Must Consider When Making a Job Offer

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Extending an offer to a job candidate can be a stressful proposition, especially for a startup. Getting ready to do so? First, assess whether you’re making the right offer by considering the following five key variables.

Variable 1: Compensation History

Make sure you have a complete understanding of the person’s current compensation. What does their current package (cash, bonus, equity, benefits) look like? The first thing a potential hire does is compare what they’re giving up with what they will potentially receive. You need to know this in advance in order to help identify whether leaving their current company for yours will even make financial sense for the person. Most people have a mental block against moving backwards in compensation or title.

Variable 2: Expectations and Motivations

Next, you should begin to talk about other expectations and motivations. What does the person care about? Commute time, specific research, autonomy? Something else entirely? Focus your conversation on individual motivations and address each of their work-related interests. Figure out what their current role isn’t offering them and use that your advantage. This can help candidates see how this new role aligns with their goals.

Read more on LinkedIn.

“They should understand why a job at your company would be more gratifying than the one they currently have.”