How To Make The Job Offer

Chilli Factor Guide – How To Make The Job Offer

This How to Make The Job Offer Guide is an extract from Chilli Factor Recruitment Training Resources available to Chilli Factor Recruitment Software subscribers.

Guide covers:

1. Making the decision to hire 
2. Extending the offer 
3. What to do if the offer is declined 
4. Employment contract 
5. Offer process 

1. Making The Decision To Hire

After completing interviews, reference checks, assessments, checking entitlement to work in NZ etc, hopefully you have selected a preferred candidate. Your next step is to extend an offer of employment. Ensure you manage this process professionally as you don’t want to lose the candidate after all the time you have invested! 

Below are some guidelines to help you with your decision:

• Involve HR and your manager in the decision to ensure nothing has been overlooked and that you all agree the candidate is the right person for the job. 

• Check that any alerts raised, i.e. in the application form, background checks, assessments and reference checks, have been discussed/investigated.

• Don’t make your decision to hire based on emotion. Discuss the reasons why you have selected the candidate with HR and your manager. Be open to being challenged on your thinking and take the time to qualify and support your reasoning. Investigate any concerns raised by HR or your manager. Red flags are important and are often overlooked if you make an emotional decision to hire. Solving a short-term problem may just generate a bigger problem later on. The more you know about a candidate the more sound your decision to hire is likely to be. 

• Once you have agreed on a preferred candidate, confirm the nature of the offer. Can you extend the offer verbally? Who approves the decision within your company? To help you with this process complete an Approval To Hire Form to outline the offer details and gain permission to hire. You can use this document once approved as a reference guide when discussing the offer with the preferred candidate.

2. Extending The Job Offer

Speed is the key here. First extend the offer verbally to the preferred candidate and check they are happy with the offer. Do this by phone, video call or face to face meeting. State upfront if the offer is subject to any conditions, such as one last reference check, MOJ or a pre employment medical check. 

Tip: When extending an offer don’t set any expectations or make any statements that can be construed as promises you can’t, or don’t intend to keep.

If the candidate accepts the verbal offer, advise them of the next steps, for example you will courier the employment contract to them within the next day or two.  If you use Chilli Factor Offer System this will be delivered with a click of a button.

An employment offer should include such information as: 

• The position offered 
• Reporting to
• Location and working hours 
• Salary 
• Benefits 
• Starting date 
• Leave entitlement 
• Anything the offer is subject to.

3. What If The Offer Is Declined By The Candidate?

Sometimes the offer may be declined, however don’t take the first no as definite. There may be room for negotiation. If the candidate is interested in the job, but the offer doesn’t match their expectations, listen to their reasons. If you can meet their expectations, confirm this now. If you are not in a position to negotiate the employment agreement, advise the candidate you will contact HR and get back to them. 

You can also refer to your interview notes to see what the candidate stated as being important to them in the job. You may be able to negotiate other benefits. Help the candidate see that remuneration is one part of the overall job package, there may be other attractive benefits or opportunities at your company that help compensate for a lesser desired salary.  

This conversation will also give you an indication as to how open the candidate is to considering the offer, and whether you believe you can come to an agreement.

A candidate may decline an offer if they’re not aware they can negotiate. Always find out their reasoning. Keep the lines of communication open for as long as possible as you may be able to meet their expectations. 

Don’t be offended or put off by a candidate if they try to negotiate the offer. Negotiation may be one of the key skills required for the job! 

If the offer is officially declined, meet with HR and your manager to review the candidate’s reasons and to discuss the next steps. This is particularly important if a top performer has declined, as you may not have met market expectations i.e. salary/remuneration package. You may also need to review and revise the Compelling Offer Guide and the Clear Expectations Guide. (Available in Chilli Factor Recruitment Training Resources.)

Candidates often choose to stay with their current employer if they are offered greater remuneration incentives. You may wish to leave the door open for these candidates, as remuneration counter offers are known to only hold candidates in their existing job for a limited period time. 

Tip: Ask HR or a third party to make the offer. Some candidates feel more comfortable negotiating the offer with someone other than their prospective future manager.

4. Employment Contract

Once the offer has been verbally accepted, ensure the employment contract is generated and signed by all parties promptly. Placements can fall over at this stage. Verbal acceptance is a favourable intention, but written confirmation seals the deal! 

If you don’t have an online offer system, like Chilli Factor Offer System that helps facilitate this process quickly and easy, you might follow the below steps:

1.Approval To Hire

• If part of your process, complete the Approval To Hire form and obtain the required approval from designated approvers.
  

2. Generate Contract & Sign Contract

• Make sure you know who is responsible for generating contracts in your company and when required advise them when you need documents by.
• You may need to generate the contract yourself and have HR or your manager approve and sign it. 
• Typically contract paperwork consists of an offer letter, employment agreement (based on employment type) and relevant schedules covering key offer details, bonuses, company vehicle use etc.
• Depending on your process, you may also include a ‘Welcome pack’ at this stage, containing information on company benefits, policies & procedures, forms to complete and bring on the first work day such as bank account and IRD forms.
• Ensure you provide the new employee with clear instructions on where to report to on their first day, parking and anything else that will make their first day easier.

3. Deliver Contract to the Candidate for Signing 

• a) Candidate’s may want to come and collect the contract and discuss the terms. It’s their right to seek legal advice before signing so never pressure them to sign it straight away. 
• b) Courier the contract to the candidate’s preferred address and ask for them to sign and return it by a certain time.
• Update your records showing the contract has been sent. Record the date, method of delivery, courier ticket.

4. Receive Signed Contract

And completed employment pack documents.

When you receive the signed contract: 

• Update your records with the returned date. 
• Check the contract has been signed in all the required places. 
• Check the candidate has not made any alterations or amendments to the contract. 
• Provide HR/Payroll with paperwork. 
• Call and congratulate the new employee. Let them know you are available if they want to contact you before they start. Advise the next steps.

5. Offer Process

In summary, ensure you have an efficient robust offer process in place. You need to move quickly at the offer stage as candidates can be lost if you are slow off the mark. Top performers looking for a new role will often receive multiple offers at the same time, so you must work fast to retain their engagement. 

Plus, the sooner the candidate signs the contract the sooner they can start! If a candidate is currently employed they will generally be required to give four weeks notice. Ideally the candidate will start in time to receive a handover from the exiting incumbent… as long as you act quickly! 

How Does Chilli Factor’s Offer System Help You?

• Once you’ve set up the offer management system – processing, delivering and returning contracts is fast!
• Approval to Hire request forms are easy to complete with instructions for users to know exactly what to enter, with an option for HR/Recruiters to check info before sending to approvers to review. 
• The online Approval to Hire process is quick to complete form correctly and send to Approvers. Easy for Approvers to review and approve online on the go. 
• Contract templates and merge fields are set up in system settings. Users when managing an offer, only need to select a contract type which will provide them with the correct document/s.
• Contract is automatically populated with correct approved details with one click of a button.
• Send online to the Employer to Sign, via desktop or mobile. 
• Send online to Applicant to Sign, via desktop or mobile. 
• Easily track offer contract acceptance and offer pack completion status, including full audit trail record from start to finish.
• Collect signed contracts and digitised documents quickly. 
• No need to scan and print copies for applicants. 
• And more.