So you’ve found a fantastic executive leader and you’re ready to start putting some offers on the table. Here are a few things to keep in mind when it comes to the point of discussions and negotiations.
Although appropriate compensation will be a major draw card for an executive, it may not be the sole driving factor (which we’ll discuss in the next point).
Ask what their expectations are when it comes to the role and what would success look like to them.
What do they think is fair and reasonable? Will they be taking a pay cut to start in your role? If they are, it can mean there is more impactful and purposeful reason for their interest in the position.
It is important to know what your future new executive actually finds desirable as part of a package, and you might not be surprised to know it may be much deeper than a fat cheque.
What are their expectations of what the role will bring to them? It may be they are passionate about a particular cause and will have opportunities to pursue that as part of their role.
Are they interested in connecting with a particular network the role will expose them to? Are they wanting to be able to have better work-life balance? Are they wanting to connect with particular charities and develop fundraising strategies as a part of the business objectives?
Ask them what is important to them as a part of a package that goes beyond ‘just pay’ and see where their suggestions align with what you can offer.
It can help to have a ballpark range of what is considered an industry standard rate of pay for the role you’re hiring for before entering negotiations.
What is higher than expected? What is lower? Where do you sit in your offering with these standards? How comfortable would you be with offering a higher than market average?
Before entering negotiations, ensure you know your budgets, financial allocations and have a firm ‘non-negotiable’ threshold that you know you can’t go over regardless of circumstances.
What is the evidence they are providing for the return on investment the business will see if you hire them?
For every dollar spent on a CEO, you should expect to be seeing that returned exponentially through the business in some way.
What is their justification for their rate of pay, and how does this align with their years of experience, outcomes and perceived value?
What does their track record look like? How have they delivered returns to past companies?
It is important to do your due diligence and speak to references prior to entering into negotiations.
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