Here’s another way to make job offers to candidates. In this case, you start as high as you can and remove most of the negotiation. This is how it works:
1. The Offer
Make an offer that is 95% of whatever would be too much for this candidate. That means if the candidate asked for more, you would be comfortable saying No and moving on.
2. Limited Negotiation
Given you’ve made such a generous offer, make sure the candidate knows it’s your very best offer and if they try to negotiate for more, you will have to ask for something else to be reduced in return.
3. The Shop Issue
Although this approach is effective, the main problem is that a candidate can shop your offer to another company, leaving you open to being beaten on compensation by a small amount.
Best of luck out there.
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
